The Search for Value - A program for reviving the lagging relevance of loyalty program communications
We live in a world in which consumers voluntarily trade information about themselves—transactional data, survey answers and preference details—for economic incentives and deeper relationships with their favorite brands. In this era of enhanced expectations, where empowered consumers are in complete control of these relationships, there certainly exists a strong desire for engagement. Young and old, men and women, affluent and middle class—consumers are united in a common search for value.
Unfortunately, the evidence shows that the loyalty industry is clearly falling short on delivering the personalized, relevant and value-added communications our best customers demand. In an April 2009 study conducted jointly by COLLOQUY and my customer loyalty agency Direct Antidote, we asked more than 2,000 U.S. consumers in an online panel how relevant they found loyalty program communications on a 10-point scale. Just 32% of consumers surveyed rated that relevance 8 or higher. In other words, 68% of U.S. consumers think loyalty program communications are largely irrelevant.
Given that loyalty marketers practice a mature craft with nearly 30 years of history behind it, one might call these numbers dismaying. We can and must do better.