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Survey: Promotions, discounts foundation for most loyalty programs

February 9, 2017

Promotions and discounts are the prime force behind customer loyalty programs despite the fact 75 percent of companies are slicing margins to offer the discounts, reveals a new SheerID survey.

This year more than 84 percent of companies plan to offer promotions and 64 percent will offer exclusive loyalty promotions to specific customer groups, such as teachers and military personnel.

"This survey confirmed some facts that we know to be true: Customers shop for discounts, and to win their business, brands are willing to sacrifice margins," Jake Weatherly, CEO of SheerID, said in a release. "What you don't want to see are brands that suffer extensive margin erosion due to discount fraud when customers who aren't eligible for exclusive offers lie to gain access to those deals."

The survey notes one third of brands not offering exclusive deals cite a lack of time to create promotions, a lack of IT resources for managing promotions and slim margins as prime reasons.