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% participation. Participation by
Millennials (age 18-25) spiked to 86.5%, up 11% 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% participation.
Loyalty marketing programs recognize and reward the best customers of a
business. COLLOQUY’s loyalty perceptions study examined trends in six
consumer segments: General Population representing a statistically
distributed sample of Canada; Affluent (heads of household with annual
incomes of $125,000 or greater); Millennials (respondents aged 18-25
years); Seniors (respondents 60 or older); Core Women (female
respondents age 25-49 with 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% 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% 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% increase from two years ago. Comparatively, the same demographic
in the United States reports a 58% 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% 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.
About COLLOQUY
COLLOQUY comprises a collection of publishing, education and research
resources devoted to the global loyalty-marketing industry. Owned by
LoyaltyOne, COLLOQUY has served the loyalty-marketing industry since
1990 with over 30,000 global subscribers to its magazine and www.colloquy.com
the most comprehensive loyalty web site in the world. COLLOQUY’s
research division develops research studies and white papers including
industry-specific reports, sizing studies and insights into the drivers
of consumer behavior. COLLOQUY also provides educational services
through workshops, webinars and speeches at events throughout the world
and is the official loyalty-marketing partner of both the Direct
Marketing Association and the Canadian Marketing Association and a
content provider to the American Marketing Association. COLLOQUY also
operates the COLLOQUY Network, a global consortium of
practitioners. COLLOQUY magazine subscriptions are available at no cost
to qualified persons at www.colloquy.com
or by calling 513.248.9184.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6033055&lang=en
For COLLOQUY
Tim Sansbury, 513-231-5115
tim@jzmcbride.com
or
Will
Sikes, 513-231-5115
will@jzmcbride.com