2017年会员积分奖励计划报告.pdf

EXECUTIVE SUMMARYTHE LOYALTY REPORT 2017THE BATTLE FORLOVE & LOYALTYLaunchEditionPUNCHING ABOVE YOUR WEIGHTThis year, the gloves come o as we pit champions versus challengers in a battle for consumer love and loyalty. Changes in Program Member attitudes and behaviors are reshaping the loyalty landscape and pressuring the status quo. Loyalty Program design does not need to rely solely on the familiar punch of a dividend. Its about hitting smarter and punching above your weight with a superior customer experience that recognizes your best customers.With more Programs competing for their attention, hyper-informed consumers expect personalized and shared interactions across a brands loyalty ecosystem. A Programs success hinges on its humanity and ability to respond to competitive pressures, embrace evolving technologies and create a better Member experience.To dierentiate and knock out your competition, your loyalty Program must adapt, surprise and delight.Lets step into the ring.NORTH AMERICAS LARGEST LOYALTY STUDY Program Mechanics Rewards & Redemptions Earn Mechanics Brand Alignment Loyalty Emotional + Behavioral Outcomes Human-to-Human Experiences And moreATTRIBUTES50+LOYALTY PROGRAMS400+participated in this study through an online surveyNORTH AMERICAN CONSUMERSA sample of over28,000INDUSTRY SECTORS INCLUDING10+ Payments Retail Grocery Hotel Gas Airline Entertainment Coalition CPG Etc.#LOYALTYREPORT |4Credit CardsGas / Convenience / Grocery / DrugstoreDining QSRRetail SpecialtyDining CasualRetail DepartmentHealth + Beauty(Retail CPG)AirlineHotelCPG Food + BeverageServicesApparelAverage total Program enrollment has grown 31% over the last four years to 14.3 Programs per MemberSHOW THEM SOME LOVESTRONGLY AGREEEnrollmentActive2122%Members who enjoy participating in their Loyalty Programs aremore likely to be very satisfied, yet only 31% feel this wayBEST CUSTOMERS ARE NOT BEING TREATED BESTof Members perceive their experience with the brand as better than that of non-Member customers ONLY 22%Program representatives consistently make Members feel positive emotionsAN EXTENSIONOF YOUR BRANDSTRONGLY AGREEProgram representatives consistently improve Members understanding of the ProgramPAYMENT PROGRAMSMEMBER SATISFACTION BY SECTOR14.3106.7say that Loyalty Programs make them more likely to continue doing business with brands81% modify spend to maximize Loyalty benefits66% are more likely to recommend brands with good Loyalty Programs73% The permission-based relationship of Loyalty oers something that other forms of marketing dontTHE LOYALTY ADVANTAGE“Very Satisfied” with Loyalty ProgramsPROGRAM REPS NOT PULLING THEIR WEIGHT52%FAST FACTS#LOYALTYREPORT |5FAST FACTSROOM FOR IMPROVEMENTTHE DIGITAL AND MOBILE EXPERIENCETHEY JUST DONT KNOWREDEMPTION57%AGREE55%52%57% of Americans would like to interact with Loyalty Programs on their mobile devices55% of new Members enroll online compared with 32% at a brands location52% of Program Members dont know if their Program oers a mobile appof Members are very satisfied with their Programs customer support experienceUp from 33% in 201636%GETTING PERSONALONLYONLYof Members are very satisfied with the level of personalization they experience with their ProgramUp from 22% in 201625%25%57%However, 33% of Members strongly agree that Programs are trustworthySlightly down from 37% in 2015of Members are very satisfied with the level of eort needed to earn a reward or benefitWorking hard for the rewardof Members dont know their points balance and 38% are unaware of their points valueARE YOU FORGETTING SOMETHING?$100 BillionAn estimated $100 billion in points are left unredeemed by MembersTrust is key to Loyalty With increasing challenges in the battle for love and loyalty, Programs must keep their gloves raised to maintain their heavyweight status.CHAPTER 1LOYALTY IS A MARKETING HEAVYWEIGHT#LOYALTYREPORT |7Since our 2014 study, the average number of Program memberships per American consumer has increased steadily from under 11 Programs to over 14. Meanwhile, the number of Programs in which Members are active, meaning they have earned or burned Program benefits or rewards, is virtually unchanged at just under 6.7 (47%). This suggests that Americans are willing to enroll in additional Programs, yet their capacity to engage has reached a threshold.MEMBERSHIPS ARE UP, WHILE MEMBER ENGAGEMENT IS AT CAPACITY201746%201644%201543%“Very Satisfied” with Loyalty ProgramsSATISFACTION IS UP, BUT THE BELL HASNT RUNG YETHistorically in this study, overall Member satisfaction has been stableneither increasing, nor decreasing substantially. Most Program operators would likely agree they have made Program improvements and increased budgets. Yet, any positive impact on Member satisfaction has been diminished likely by continuously increasing consumer expectations and increased Program imitation among competitors. Overall Member satisfaction has increased by 2%, to 46%. This increase is no small feat; however, more needs to be done to transform smiles into tangible results. Member satisfaction is up, and the impact of Loyalty Programs on Member spend, choice, advocacy and retention is high. Few, if any, other marketing initiatives could claim impact of this magnitude. Yet, the key loyalty outcome metrics below are showing signs of pressure. Loyalty Key Performance Indicators2014% Active Memberships Total Memberships Active Memberships10.972%2015 2016 201714.347%7.8 6.7I am more likely to recommend brands with good Loyalty Programs2016 73%Programs make me more likely to continue doing business with brands2016 81%I modify amount spent to maximize points2016 66%Programs are part of my relationship with brands2016 75%I modify when/where I purchase to maximize points2016 70%I modify brands purchased to maximize points2016 67%73% 81% 66%76% 69% 67%CHAPTER 2EXPERIENCE PACKS THE STRONGEST PUNCHWe evaluated over 50 potential key drivers of Program satisfaction. Among them, “meeting needs” packed the greatest punch. So, how do you ensure that your Members are enjoying their loyalty experience and course-correct if they start to lose the love? #LOYALTYREPORT |9EXPERIENCE REIGNSOf all the ways in which Members interact with and evaluate Loyalty Programs, the experience matters the most. Experience drivers are more important than monetary drivers in achieving Program satisfaction. Not surprisingly, earn and burn elements are important; however, its the experience that makes the greatest dierence in overall satisfaction. The experiencecomprising the digital experience, human touch, and the way in which a Program aligns with the brandalso oers the greatest opportunity to dierentiate from competitors.LEAVE YOUR COMPETITION BEHINDMembers evaluate their Programs on a variety of attributes, benefits, and experiences. But which are the most influential drivers of satisfaction? We conducted in-depth regression-based analysis to understand the most important factors driving Members to be very satisfied with their Program. Results show a meaningful mix of dividend, reward, and experience elements are the most important drivers of Member satisfaction. The top 10 drivers are as follows: 1. Program meets needs2. Enjoy participating in Program3. Program makes brand experience better4. Ease of redemption 5. Program consistent with brand expectations6. Program rewards/benefits appealing7. Level of eort needed to earn redemption8. Time to earn desired rewards/benefits9. Amount accumulated per $1 spent10. Ways rewards/benefits can be earnedAssess your key Program touch points and the human-to-human interactions as areas of opportunity to create an experience that trumps your challengers and engenders your customers to your brand.ExperienceProgram Experienceds &RewarRedemptionsEarnDigital Experience THuman ouchBrand AlignmentDividendFocus on the drivers that matter mostTop drivers differ by sector, by segment, and even by objectiveDifferentiate on experience, not on rewards321KEY TAKEAWAYSSATISFACTION BY SECTOR Average Member satisfaction varies by sector. For instance, the highest average Member satisfaction rates are among Bank Branded Cashback/Rebate (59%), Bank Branded Points Co-Brand Payment and Gas/Convenience/Grocery and Drugstore Retail (48%). Conversely, the lowest average Members satisfaction rates are among Hotel(38%), CPG Food + Beverage (36%), Services (35%) and Apparel Retail (31%).23%19%11%11%18%18%CHAPTER 3THE ANTICIPATION IS JUST AS SWEET AS THE REWARDMembers eligible to redeem are just as satisfied as Members who have just made a redemption suggesting the anticipation of a reward upon redemption eligibility is just as sweet as the reward itself. Yet, many Members show a lack of awareness of points balance and the absence of a redemption goal. Alarmingly, 57% of Members do not know their points balance and satisfaction within this cohort is similar to that of Members who knowingly have a minimal points balance.#LOYALTYREPORT |11SATISFACTION GUARANTEED? Redeemers are 2 more likely to be highly satisfied with the Program than non-redeemers, yet still solidus of Members have not redeemed, putting them at a higher risk of attrition. Perhaps surprisingly, satisfaction is vulnerable immediately following redemption. In fact, receiving the reward can literally be a let-down and as such, Program Operators must intervene to mitigate attrition risk by maintaining engagement.KEEP THEIR EYE ON THE PRIZE34% of Members do not have a redemption goal. In other words, they do not have an intended use for their accumulating points. Members without a goal are less satisfied, suggesting that simply encouraging Members to set a redemption objective can drive up Member satisfaction.Program operators invest significantly, and likely disproportionately, in rewards. As drivers of Member engagement, rewards deserve much of your focus and attention; however, be sure not to overlook and undervalue the phase preceding redemption eligibility. Operators must make it easy for Members to decipher their status, and help Members find a purpose for accumulating points. Plus, the closer the Members get to their goal, the greater the satisfaction.$100 BILLION REASONS TO CAREThe cumulative points liability for all U.S. Programs is estimated to be valued at roughly $100 billion. This value represents both risk and opportunity for loyalty operatorsredeeming for even a small portion of these points would likely create many great Member experiences; however, the sheer value of this unredeemed currency highlights the importance for loyalty operators to oer cost-eective redemption options. The fact that Americans have collected and not redeemed such a high level of points suggests Program strategies could be doing a much more eective job of engaging Members and driving redemption behavior. Focus on the redemption experience, not the rewardEncourage reward goal settingFoster better awareness of accumulation status, and communicate progressTake action to mitigate post-redemption attrition risk3 421KEY TAKEAWAYSsolidus of Members have not redeemedGoal54% very satisfied overall among Members with a goalNo Goal43% very satisfied overall among Members without a goal34%66%CHAPTER 4COMPETE AGAINST RICHER DIVIDENDS WITH A BETTER EXPERIENCEPunch above your weight with a better Program experience than your competitors. By focusing on a superior experience, your Program will delight your Members and compete with champion brands and Programs that oer richer dividends.#LOYALTYREPORT |13COMMON PROGRAM ELEMENTS ARE OFTEN THE LEAST EFFECTIVEFrom over 28,000 survey responders, we assembled an inventory of Program value proposition elements for over 400 Programs. This collected data includes a Program- and market-level perspective, revealing the things that are most, and least, commonly oered to Members by Programs today. Not surprisingly, many of the most common Program features are the things that have the least impact on satisfaction, given that mimicry erodes impact. Monetary features (e.g., cashback, promotions, discounts) are widely available, yet yield a below-average impact. The Program experience features (e.g., personalization, tiers) are less common and score higher on satisfaction impact among Members. GO TOE-TO-TOE WITH ANALYTICS-DRIVEN DECISIONSAdvanced analytics and decision sciences guide numerous business Programs and decisionsincreasingly, this goes for loyalty as well. Program operators are, and should be, looking to analytics to answer questions such as “How can we compete with Programs oering a richer dividend?” or “How can a challenger brand compete with a market leader?” Bond has designed and applied advanced preference analytics to data collected from over 14,000 respondents to create “Loyalty Moneyball,” a tool that gives us the ability to understand the potential market impact of making various changes to the Program construct or the Program experience.THROWING A WINNING PUNCH IS NOT ABOUT DOLLARS SPENTOur analytics show that Loyalty Program operators can buy-down expensive dividends with a better Program experience. To compete as a challenger and increase overall Program appeal, add special perks and personalized oers, and ensure representatives of your brand make Members feel special.Case in point: An air travel payment card Program that allows Members to pay with points, oers special perks and whose representatives make Members feel special can expect an impact on Program appeal equal to that achieved by a Program without such experiential benefits, but rather a 1% additional dividend on spend.- % Oering +Virtual badgesGift voucherInstant discountsFee-based benefitsPoints poolingCharity supportPersonalized recosBenefits from other brandsTiersPerksMerchWaiving feesPay with pointsTravel rewardsCashback/rebatesPoints/milesOers/promosFree deliveryExclusive experiences-Lift in Satisfaction +Experience rewardDividend rewardDetermine the right mix of dividend and experienceChallenge brand champions with the a better mix of Program featuresCompete against Programs offering richer dividends through less expensive Member benefitsIdentify white space using analytics3 421KEY TAKEAWAYSProgram experience features score higherCompeting against a richer dividend2.5% dividend credit cardPROGRAM AProgram Appeal1.5% dividend credit cardPLUS Instant redemption across merchants Members feel special/recognized Special perksPROGRAM BCHAPTER 5THE LOYALTY ECOSYSTEMLOYALTY BEYOND THE PROGRAM Only 22% of Members perceive their experience with the brand to be better than that of the brands non-Member customers. In other words, the majority of Memberswho typically are among a brands best customersfeel that they are treated just like all the rest.We found that 76% of Members agree that the Program is part of their relationship