Consumers are increasingly recognizing the value of loyalty program participation, according to a new study. Since 2007, rewards programs have realized a 19% growth rate.
Among certain demographics, the increases are even more significant. Among Millennials, or Generation Y (people between the ages of 18 and 25), 58% participate in these programs now, a 32% jump from two years ago. And 27% of Millennials are actively seeking to enroll in new programs to help expand their budgets, according to a white paper from Colloquy, a loyalty marketing research and publishing concern.
Does the soured economy have something to do with this trend? Yes, according to Colloquy’s research. Nearly half (46.4%) of responding Millennials rated retail rewards programs as “more important” during the recession. This outpaces the general population, at 32.3% for the same category.
Unsurprisingly Millennials are far more likely to enjoy engaging with programs through new media channels than the general population. More than 55% appreciate communicating through social networking sites, compared with 39% for consumers at large. They’re also more tech-savvy: 52% enjoy communication via cell phone or text message, in contrast with 38% for the general population.
Among Colloquy’s other findings:
* 29% more women are engaged with these programs currently than had been in 2007;
* The retail sector reaped the greatest benefit in program participation due to the economy, with 75% of those surveyed saying the rough current times were either a neutral or positive influence on their participation;
* The financial services sector did not see the same benefit, with 53% reporting the recession made “no difference” in their willingness to participate in industry programs.
Colloquy surveyed 2,152 individuals regarding their loyalty program participation.
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