More than half of American loyalty-program members reported that they are unhappy with the reward options offered by brands. According to research released by Colloquy and FanXchange, 48 percent of those surveyed have experienced frustration during the rewards redemption process.
Other findings from the 2014 Customer Engagement Survey show that 93 percent of U.S. consumers believe the type of reward offered is very or somewhat important in their decision to join a loyalty program.
What rewards topped the list? Most consumers, 56 percent, preferred concerts, sports or theater tickets to airline tickets, 44 percent.
"The competitive marketplace can leave programs scrambling for the best ways to entice members to join and stay engaged," said Jeff Berry, research director, Colloquy. "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."
In addition to unappealing reward offerings, other frustrations with loyalty programs included expired points, 43 percent, not enough time to redeem points, 39 percent, and the reward item not being available, 37 percent.
However, findings reveal that loyalty programs can benefit retailers. Once enrolled, 43 percent of U.S. consumers have purchased more frequently because of reward offerings.
Loyalty programs are becoming increasingly important to customers in the retail experience. Whole Foods (NASDAQ:WFM) just recently launched its first customer loyalty program in its Princeton, New Jersey store. And 7-Eleven took its program to a larger customer-base when it recently expanded its loyalty program to 2,600 store locations.
-See this Colloquy article
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