By: Erika Stevens

Before I left for Loyalty Expo in Orlando I ran across an article talking about the statistics from an ACI Worldwide study regarding loyalty programs.  By the time I returned from the show these statistics were popping up everywhere along with a number of articles and blog posts dissecting these numbers and discussing what they mean.  Below is a sampling of the statistics I have seen floating around the internet.

• Three out of four Americans are members of at least one retail loyalty card program. 

• The majority of American consumers (62 percent) join retail loyalty programs so they can get discounts on the things they buy most, yet only about one third of Americans (36 percent) received a reward or promotion that made them come back to the store again, and 1 in 4 (27 percent) of consumers complain they have received a reward or promotion for something they would never buy.

• A mere 27 percent of Americans have received a loyalty program reward or promotion that made them feel valued as a customer.

• Eighty one percent of American loyalty program members are enrolled in a program that they don't completely understand. They don't even know the basics, such as "What benefits do I get and when do I get them?"

• Like a disappointing date, many loyalty programs leave consumers feeling underappreciated; 85 percent of members report that they haven't heard a single word from a loyalty program since the day they signed up.

• Whether it was a reward they didn't want (27 percent) or a reward that was too small to take seriously (22 percent), more than 2 in 5 (44 percent) consumers have had a negative experience from a loyalty program.

These statistics undermine the benefits customer loyalty can provide for your business; particularly the statistic regarding lack of communication from the loyalty program since enrollment.  If your loyal customers give you their information why would you not use it?  Maybe it is just because I work in the loyalty marketing industry, but I see a message of opportunity below this disappointment.  I see customers who are expecting communication when they join a loyalty program.  I see customers who want rewards and discounts that are relevant to them.  Most importantly I see customers who are asking for more from the businesses and loyalty programs they belong to.  I often write and talk to prospects and others in the loyalty industry about the importance of communication to customers along with the constant evolution of existing loyalty programs.  Communication needs to be as basic as explaining the loyalty program and as in depth as soliciting your members feedback. 

As I was sifting through my Google Alerts this morning I read an article posted on CBS Money Watch discussing the statistics from a customer standpoint.  The article from CBS Money Watch is actually titled “Loyalty Programs: A Pain in the Neck?”  Any business that has a loyalty program knows that this is not the result you are anticipating when you start your customer loyalty program.  A quick Google search on the statistics will lead you to a number of articles and blogs highlighting similar sentiments.  The articles and blogs written in response to these statistics need to be read by businesses and marketers alike.  We need to listen to what consumers are saying and find a way to create value in our loyalty efforts instead of confusing or failing to deliver the communications and rewards they are expecting and deserve. These statistics should push businesses to evaluate not only their loyalty programs but how they are treating their loyal customers.