Finding Canadian consumers that don’t participate in loyalty programs
is getting tougher - a near universal 93.6% said they belong to at
least one program, according to COLLOQUY research released today. The
number reflects a 9% participation growth by the general population
since 2007.
Activity across all demographic segments is up, except for the Affluent
segment, which remained flat at 96 per cent participation.
Participation by Millennials (age 18-25) spiked to 86.5 per cent, up 11
per cent since last measured in 2007 to represent the fastest growing
demographic. Women and seniors nudged up slightly, and consumers in
French Quebec measured for the first time at 92.4 per cent
participation.
Loyalty marketing programs recognize and reward the best customers of a
business. COLLOQUY’s study of loyalty perceptions examined trends in
six consumer segments: General Population representing a statistically
distributed sample of Canada overall; Affluent (heads of household with
annual incomes of $125,000 or greater); Millennials or Young Adults
(any respondent 18 to 25 years of age); Seniors (any respondent 60
years or older); Core Women (any female respondent age 25 to 49 with an
annual income between $50,000 and $125,000); and French Quebec (those
residing in French Quebec). COLLOQUY magazine and white papers are
published
by LoyaltyOne.
Coalition loyalty programs, like AIR MILES in Canada, Dotz in Brazil
and Fly Buys in Australia and New Zealand are proving vital tools for
consumers looking stretch household budgets in response to a
challenging economy. Exactly 25.8 per cent of survey respondents said
that participation in coalition
programs has become “more important” since the economy turned sour.
Consumers found the value of coalition program participation in a
recession higher than retail, financial services and travel rewards
programs.
“We were already aware that Canada was a congested loyalty arena,” said
COLLOQUY Editorial Director Rick Ferguson. “But to see a nearly 10 per
cent jump in such a market says that consumers are turning to rewards
programs more than ever to offset economic woes. And the value of
coalition programs in the eyes of Canadian consumers cannot be
understated.”
Loyalty participation by Millennials has grown faster than any other
demographic since COLLOQUY’s last benchmarking study in 2007. As
mentioned above, participation rates in this demographic stand at 86.5,
an 11 per cent increase from two years ago. Comparatively, the same
demographic in the United States reports a 58 per cent participation
rate.
The data reveals more intriguing information about this group and their perceptions about loyalty programs, including:
• Millennials lead all demographics in their views on the importance of
coalition rewards programs during an economic downturn. Over one-third,
or 35%, find coalition programs more important due to the recession.
• Millennials are the most likely group to shift their rewards
redemptions to necessities due to the economy. More than 20 per cent
said that they shift from using points for luxuries or a saving
strategy to necessities.
“Loyalty marketers have a once-in-a-lifetime opportunity to demonstrate
program value to this next generation of consumers. Proving a value
proposition in a time when the group needs it the most could prove
priceless in fostering lifelong advocates,” added COLLOQUY Partner
Kelly Hlavinka.
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