The Great Divide: How Consumers vs. Retailers Perceive Loyalty Programs
Retailers have consistently relied upon loyalty programs that offer incentivizing rewards to consumers in exchange for repeat business. In fact, according to the 2017 COLLOQUY Loyalty Census, U.S. consumers hold 3.8 billion memberships in customer loyalty programs.
While many retailers equate membership with loyalty, often this is a false indicator. To illustrate a more accurate picture of consumer perceptions on loyalty, Oracle Retail published Retail 2018: The Loyalty Divide, based on a global research study across retail, hotels and restaurants, which surveyed over 13,000 consumers and 500 brands across 10 countries. The results point to a significant gap in what retailers and consumers think about loyalty.
The average U.S. citizen has 38 loyalty memberships. Of those 38 memberships, consumers are typically active in an average of 12 programs. This highlights a fundamental misconception around loyalty programs: Being enrolled in a membership program doesn't indicate loyalty.