Valuedynamx has just released a new research report highlighting what really drives consumer loyalty program satisfaction. The announcement can be found here. As you will learn reading the report, consumers highly value their investments and interactions with a program and want to derive equal, if not greater value, from that investment. 

There is a direct correlation between customer satisfaction and the rate at which loyalty program members engage in the program by redeeming/spending and earning rewards. This supports the point of view that redemption is a driver of program success and, rather than hanging on to legacy thinking about limiting redemptions to manage expense, brands should be thinking about how to engage program members to redeem more often.

The report notes the opportunities to create more consumer value, with the finding that 90 percent of loyalty program members seeking the flexibility to redeem loyalty points with multiple brands. These “non-core” inventory options are the trigger to giving consumers the flexibility they desire.

Despite this overwhelming demand, many loyalty programs still limit redemption options to their own brand while fewer programs offer rewards and discounts across multiple brands.

As Colin Evans, Chairman, Collinson & Valuedynamx comments in the report summary, “the 2024 Power of Satisfaction research defines what complete satisfaction looks like in a modern loyalty program. And we’re not just talking about baseline customer
contentedness – but rather that priceless, sincere feeling at the heart of a successful loyalty program that excites and motivates members to continue earning and deriving value from their favorite brands.”

You can download the report here and look for more in depth analysis of the findings in an article on The Wise Marketer soon.