Loyalty Program Membership Hits 1.3 Billion, Participation Low: Study
Membership in loyalty programs has soared to 1.3 billion, with the average household belonging to at least 12 loyalty clubs. But less than half (39.5%) actively participate in them, according to a recent study.
Those were among the top findings in a recent Colloquy Loyalty Census.
Of the 12 programs to which the average household subscribes, only 4.7 have active participation, the study found.
While loyalty marketers strive for high enrollment, the key is keeping members active, Colloquy said.
“Marketers must adopt highly targeted enrollment strategies and allocate resources where they accomplish the most good,” said Colloquy senior director Kelly Hlavinka in a statement. “That means enroll the right customers, drive active participation programs, employ reward bonuses selectively and use loyalty data throughout the organization to increase customer insight.”
Other key findings include:
*The airlines, financial services, grocery and specialty retail sectors account for 57% of total loyalty program membership.
*Airline reward-seat inventory continues to shrink, and mileage expiration periods continue to shorten, fueling the devaluation of mileage currency.
*Some 239 million members have financial service loyalty programs, which are largely driven by credit cards with rewards offers. Since 2000, the category has had a 164% growth.
*Hotel loyalty programs will have modest growth as consumers migrate from airline loyalty programs for hotel offers with better value.
For its part, the gaming industry is poised for healthy growth, according to the survey. As gaming leads, loyal fans will follow. In addition, the restaurant industry is set for a loyalty renaissance.
Census results are based on over 1,000 loyalty program sources, including Web sites, shareholder annual reports, research reports, third party publications and interviews. Industries covered in the study include airlines, financial services, hotel, restaurant, gaming, grocery, specialty retail, drug and discount stores, and department stores.
