Warc, 5 September 2014
BOSTON: Members of Generation X are the most frequent loyalty buyers, but brand loyalty programs are popular among all age groups, a new survey into the effectiveness of incentives has revealed.
According to DailyBreak Media, the social engagement platform, almost two-thirds (65%) of Gen X-ers who belong to a loyalty program buy at least once a month from brands or retailers, and they are followed by baby boomers (60%) and those aged over 68 (55%).
Although DailyBreak did not provide details about its survey sample, the company said brand loyalty membership also drove other behaviour among its respondents.
A full 80% of Gen X-ers agreed that loyalty programs drove them to engage with a brand online, a view shared by 66% of baby boomers and 64% of millennials, the report said.
Overall, 83% of respondents said they belonged to at least one brand or retail loyalty program while 13% said they belonged to five or more.
"Customers crave engagement, and brands desire loyalty: making these ends meet is critical for building a strong following that translates into sales and subsequent purchases, either online or in-person," said John Federman, chairman and CEO of Dailybreak Media.
"This new survey shows that customer loyalty programs are the cornerstone for any engagement initiative. Rewarding consumers with incentives to prolong that engagement or make a purchase is essential to cultivating strong brand awareness and allegiance."
Data sourced from DailyBreak Media; additional content by Warc staff