Last August I posted about loyalty programs. Back then I mentioned how the main reason for loyalty programs is that it’s an easy way to track customer habits. This month, Epsilon, a customer-focused marketing firm, has reported on “The Loyalty Effect” and its impact on the 2006 holiday shopping season.
The report found some interesting things:
- Members of loyalty programs tend to be more affluent (incomes $100k+)
- 44% of members spent $1,000+ on holiday purchases
- Members tended to shop at stores they had a relationship with
- They also were more influenced by reviews from social networks and were more likely to tell others about their experiences and loyalty programs
It seems that the effect loyalty programs has on consumers is more substantial than previously thought. Such programs tend to increase word of mouth and sharing of experiences.
>> Read more about the report from ClickZ.
