Loyalty rewards programs have more influence over younger consumers than on their parents’ generation, a new survey has found.
The online survey, conducted by Bond Brand Loyalty, polled over 50,000 consumers – more than half in Canada and the United States - in December and January to assess more than 800 loyalty programs in a number of sectors.
Loyalty programs have been growing in popularity, with memberships increasing 68 per cent over the last five years, according to the report.
The survey also found consumers spend 37 per cent more with brands when they are a loyalty plan member, with the greatest uptick seen in the gas, hotel, coffee, and airline sectors.
Millennials and Gen Z consumers spend more with their loyalty programs (65 per cent) than Boomers (56 per cent). However, Boomers tend to be more satisfied with their loyalty programs (49 per cent) compared with younger consumers (30 per cent).
The majority of those surveyed (81 per cent) said they’d be open to having their behaviour and activity monitored in exchange for personalized rewards, with the younger generation and households with children among those most open to this.
And just over one-quarter (26 per cent) surveyed expressed a willingness to pay a fee for enhanced benefits.
Companies that adopt new technologies are favoured by consumers. The survey found 91 per cent of loyalty members want to engage with brands using emerging technologies, such as augmented reality.
“This year the data shows that loyalty programs continue to heavily influence advocacy, retention and spend,” said Bob Macdonald, president and CEO of Bond Brand Loyalty, in a release.
“But the loyalty game is changing as evidenced by new players, evolving experiences (human and digital) and increased customer expectations. Regardless of sector, brands need to rethink their current loyalty strategy in order to increase customer engagement and build loyalty.”