Consumers welcome loyalty apps

According to a poll of 3,162 US loyalty program users by Tennessee based research firm TechnologyAdvice, saving money and receiving rewards were cited by 57.4% and 37.5% respectively, as main motivations for signing up or continuing a loyalty program. Earning VIP status came in as a distant third as a primary motivator (3.6%) while just 0.8% felt social recognition was an important driver. Considering these insights, TechnologyAdvice concluded that US consumers are open to digital, but may not want to rely exclusively on an app or lose the convenience of a physical card. A similar proportion (29.9%) was undecided or had no preference. While consumers may be encouraged to join loyalty programs because of digital apps,the report also showed that they don’t find social rewards appealing.


The key findings from TechnologyAdvice suggest that once consumers “buy-in” to a loyalty program, then they are “highly likely” to reward a brand with repeat business. Similar findings have been gathered locally by Australian research consultancy First Point. Their study found 65% of members want to share their benefits with family, friends or a charity – and if they could share, 70% would shop more often and 45% would spend more.