Marketing Home Products with Loyalty and Rewards Programs

Posted by Steve Kleber on Jul 20, 2009

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Think about your marketing campaigns and customer relationship programs. Are loyalty or reward programs in place?

According to a new white paper by the loyalty marketing consultancy, Colloquy, titled “After the Meltdown: Consumer Attitudes and Perceptions About Loyalty Programs in the Post-Recession Economy,” as reported by MediaPost, U.S. consumer participation in rewards programs is on the rise across all demographic segments.

The white paper examined trends in six consumer segments:

  • General Population (representing a statistically distributed sample of the U.S. overall)
  • Affluent (heads of household with annual incomes of $125,000 or greater)
  • Millennials (respondents 18 – 25 years of age)
  • Seniors (respondents 60 years or older)
  • Core Women (female respondents age 25 – 49 with an annual income between $50,000 and $125,000)
  • Emerging Hispanic (respondents age 21 or older of Hispanic origin with an annual household income of $40,000 or less)

Most notable were “Millennial” participants who demonstrated a 32 percent increase since 2007. “Core Women” increased 29 percent and the “General Population” was up 19 percent in the same time period.

In relation to Millennials, 27 percent are actively seeking to enroll in new programs to help expand their budgets. They are also far more likely than any other demographic to enjoy engaging with programs through new media channels than the general population. More than 55 percent appreciate communicating through social networking sites and 52 percent enjoy communication via cell phone or text message.

According to the white paper’s co-author, Kelly Hlavinka, as reported by MediaPost,

“Millennials represent a golden opportunity in a time of economic darkness for loyalty marketers. This demographic is receptive to the wish-list of loyalty initiatives — eager to join programs, eager to build relationships with their favorite brands and eager to engage with new media channels. This shows a powerful opening for loyalty marketers to build sustainable loyalty with the next generation of American consumers.”

Does your company utilize loyalty programs? Why or why not?

For more information about how to market to Millennials, download our free white paper here.

This entry was posted by Steve Kleber on Monday, July 20th, 2009 at 9:39 am and is filed under Advertising, Marketing, Research. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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  1. Thanks for this post Steve. A good loyalty program does go a long way. Consumers need more than just your product or service to stay happy.

    I have an obsession with understanding generations so I really like the way Colloquy looked at trends by segments with Millennials being one of them.