Loyalty Programs Irk Consumers

Loyalty programs seem to be testing our loyalty. While 93% of members of loyalty and frequent traveler programs in the U.S. say rewards keep them engaged with their favorite brands, more than half (54%) report being unhappy with the options offered, and 48% are frustrated with the redemption process. That’s according to the Customer Engagement Survey just released by loyalty marketing firms Colloquy and FanXchange.

Pet peeves with loyalty programs included: expired points (43%), not having enough points to redeem (39%), and reward items not being available (37%). The results are not good news for the airlines. The study found that 27% more U.S. consumers would rather receive tickets for live events, such as concerts or sporting events, than for airline travel.

Still, loyalty programs do seem to work. One in four respondents (43%) said they purchased more frequently because of rewards or customer-loyalty programs.