As Starbucks and J.Crew Improve Their Rewards Programs, Consumers Seek Simplicity

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KISS (Keep it simple, dumb): There is no more important element in a rewards program than enabling a seamless user experience that encourages members to participate.

  • Sixty-one percent of consumers would use loyalty programs more often if they automatically applied rewards and 44% would if they offered simpler terms and conditionsby Salesforce.
  • “Rewards and loyalty programs should be easy for the customer to use,” said Patty Soltis, Senior eMarketer Analyst at Insider Intelligence. “The app is not the new loyalty punch card. Loyalty program customers want easy-to-understand personalization and promotions. Keep it simple.”

The big takeaway: Rewards programs should be a simple commerce in which members share first-hand data in exchange for a clear, desired benefit, such as a discount or a free item. The more time and/or energy consumers have to invest in understanding the details and nuances of a program (like how to use an NFT), the fewer people will use the program.

This article originally appeared in Insider Intelligence’s Briefing on retail and e-commerce—a daily recap of the top stories reshaping the retail industry. Subscribe to get more impactful takeaways delivered to your inbox daily.

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