With all of the excitement around social media and emerging marketing channels like mobile, the rather old fashion tactic of loyalty marketing seems to be increasingly falling under the radar for companies and brands. Based on audience feedback and our own proprietary analysis, it's our belief that brand marketers may be overlooking some of the value that can be derived from a loyalty marketing program including things like special discounts, preferred access and exclusive offers, among other facets.
Our underlying belief is that real engagement centers on contextually relevant contact and interaction, and loyalty marketing programs certainly have the opportunity to drive engagement and ultimately brand loyalty and advocacy.
Based on our January 2010 Insights Immersion, about one in six (16%) teens and college students are currently active in at least one brand loyalty program, inclusive of paid and unpaid loyalty programs. Perhaps more interesting though, about a third of the audience (34%) said they were at least somewhat interested in joining a loyalty program in the next year.
In a cluttered and ultra competitive marketplace, loyalty programs have the distinct opportunity to stand out to young people, both from a targeted communications perspective and from an action-based perspective. The notion of receiving an exclusive discount or receiving a gift with purchase based on something like earned points is a relevant purchase driver for an increasing number of teens and college students, especially as their tastes and purchasing habits continue to grow in sophistication.
Here's the best part in our minds. The overwhelming majority of respondents who were currently active in at least one loyalty marketing program said they were either somewhat pleased or very pleased with their experience to date.
For interested brand marketers, a key value of a loyalty marketing program is customer data. Ideally, the program will be sophisticated enough to collect more than just the basic demographic profiles of their members and ideally jump into some of the more deeper points like interests and preferences. Going beyond demographic data points will enable brand marketers to uncover some fresh insights from their customers that they can further leverage to enhance their strategy and tactics moving forward.
At the end of the day, nothing is stronger than a peer endorsement when it comes to purchase time. Happy and satisfied young people engaged with a loyalty marketing program are more than twice as likely to recommend a brand or service to their friends. It's authentic brand advocacy at its finest.
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