Patricio Robles says, “Despite the fact that companies are spending tens of billions of dollars on loyalty programs every year in the US alone, a study conducted by Accenture suggests that consumers are increasingly impervious to the effects of these programs.

The consulting firm polled 25,000 consumers around the world, of which 10% were located in the US, and found that more than three-quarters (78%) say they’ll pull their loyalty more quickly than they would have three years ago, and slightly more than a third (34%) indicate that what drives their loyalty today is the same as it was three years ago.

Despite the prevalence of loyalty programs, over half (54%) reported switching a provider in the past year. As reported by AdAge, “Retailers, cable and satellite providers, banks and internet service providers were the most likely victims of switchers.”

For many brands, loyalty programs have been seen as a potent driver of sales for years, but there’s evidence that the effects of these programs are dwindling. That evidence includes slowing same-store sales growth and “millions of points that are laying dormant” in various rewards programs”.

Loyalty programs are losing their sway: here’s what brands can do about it

Econsultancy

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