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Consumers want more value from loyalty programs, reveals report

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December 12, 2019

Over a third of consumers, 38%, avoid retail loyalty programs with many stating that they don't feel there is enough value in participating. For those opting out, 53% cite concerns about personal data being shared and potential stolen identity issues, according to a CFI Group and Radial report.

"Retailers understand that they need to offer meaningful options to meet their customers' needs," said Carey Stoker, senior vice president, customer care services at Radial, in a release on the report findings.

"Faster delivery and flexible returns are important, but equally important, if not more so, is equipping customer care agents with the ability to immediately recognize the customer as a loyalty member and provide personalized service for that customer. A personalized experience not only enhances loyalty but drives additional revenue for retailers."

The report states three actions retailers can take to make their loyalty programs more compelling:

• Offer a faster delivery option: 63% of all retailer customers say offering faster delivery influences them to sign up for a retail loyalty program.

• Offer personalized customer service: 41% of retail loyalty members say that being recognized by the customer care agent makes it much more likely that they will make more purchases in the future.

• Offer fast and flexible returns and exchanges: 55% of retail loyalty members are more likely to purchase from that retailer again when given multiple return options.