Despite the fact that loyalty programs are essential components of attracting guests, more than half of Americans are dissatisfied with loyalty program reward offerings, according to a report by COLLOQUY and FanXchange.
"Live It Up - Using Experiential Rewards to Re-Ignite Member Engagement," a report based off of a June survey of more than 1,000 American consumers, revealed that 54 percent of members are unhappy with loyalty program rewards from their favorite brands. On top of that, 48 percent have "experienced frustration" when attempting to redeem rewards.
This is despite 93 percent of American consumers noting that the rewards offered by a brand are either "very important" or "somewhat important" in determining whether to choose that brand. About 43 percent of American consumers have also purchased more frequently because of reward offerings or loyalty program membership.
And if you are a hotel company that gives away a lot of airline miles, chances are it doesn't matter that much to guests. American consumers found live event tickets (concerts, sports or theater) to be more appealing than airline tickets (56 percent to 44 percent).
There's a reason for this, as the report suggests. It's all about experiential travel these days. According to a 2013 study by JWT Worldwide, 72 percent of millennials would rather spend their money on experiences than products.
Some brands, such as Starwood Hotels & Resorts, have taken notice. Starwood partners with Audience Rewards, the official rewards program of Broadway, so members can earn points toward advance tickets, upgrade their seats or bid on experiences such as sitting with the stage manager during the show, meeting the cast backstage and gaining private access to after parties for top productions like Annie, Wicked and Billy Elliot.
"The competitive marketplace can leave programs scrambling for the best ways to entice members to join and stay engaged," said COLLOQUY Research Director Jeff Berry, via a release. "To combat this, savvy brands should consider offering experiential rewards, especially to live events that provide an opportunity to connect with members on a more emotional level."
To make loyalty members really happy, companies should consider offering concert and theater experiences. The survey found that 44 percent of consumers valued concerts the most. Theater productions were also valued by 44 percent of consumers.
Consumers and guests were also unhappy with expired rewards points (43 percent), not enough points (39 percent) and a reward item not being available (37 percent) during the redemption process.
The "Live It Up" report can be downloaded for free at http://www.colloquy.com/2014-customer-engagement.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
