With 50% of Americans defining themselves as middle-class, this group has the power to shape the directions in which loyalty programs are growing.
Middle-class consumers want a helping hand in terms of not only price but greater flexibility, choice and value from their loyalty programs. And with middle-class consumers already making trade-offs to figure out how to stay ahead of a shifting economy, marketers would do well to stay abreast of five trends that will add value to member programs:
1. Firing up flexibility:
2. Instant rewards with long-term incentives
3. Consumer control: A new-style digital coupon craze
4. Convenience versus price
5. Rewarding the middle-class:
“Many in the middle-class continue to suffer from a financial ‘squeeze’ and straight discounts aren’t delivering on the hype,” said COLLOQUY Managing Partner Kelly Hlavinka. “What’s working instead are creative programs that leverage discounts as part of their overall mix to build long-term loyalty, offer flexible redemption options, and are notably easy to use for time-crunched consumers.”
COLLOQUY magazine, published by LoyaltyOne, explores critical best practices, innovations, trends, opinion and strategies in relationship, dialogue and database marketing. Coverage in the latest edition also includes:
Cover Story: The Squeezed Middle Class
As the recession lingers, the challenges facing today’s average consumer are shifting the loyalty marketing landscape. In response, companies have hyped the “power” of slashed prices and discount promotions – yet those strategies may not yield sustainable long-term appeal for shoppers seeking greater value and utility. Explore what will ease the middle-class squeeze for your customers during tough times, and keep them coming back again and again.
The COLLOQUY Interview: Jim Stengel - The Ideal Situation
Conversation with Jim Stengel, author of Grow: How Ideals Power Growth and Profit at the World’s Greatest Companies, to learn more about how higher purpose at the corporate level leads to customer loyalty.
Telecom Report: Phone Companies Dial Up Loyalty Initiatives - Again
As the industry consolidates, smaller telecom players are turning to loyalty programs to establish clear lines to their most valuable customers, possibly signaling a crystal-clear telco connection to retention.
Financial Services Report: A Small Bank’s Big Leap into Total Relationship Banking
An energetic small bank tackles the challenges of developing and operating a rewards program built around all facets of a customer’s relationship.