April 22, 2009: summarized from Promo -- The good news is that people are joining loyalty programs in pretty big numbers, seeking added value in a tough economy. The bad news is that activity remains flat with two years ago. The take away: marketers need to shift focus from growing membership to increasing the value of the programs.
Membership in U.S. loyalty rewards programs jumped 24% to 1.8 billion, from 1.3 billion two years ago, according to the 2009 Colloquy Loyalty Census.
The average U.S. household signed up for 14.1 loyalty programs, but actively participates in only 6.2. The corresponding numbers in 2007 were 12 and 4.7.
The number of active memberships-a member with at least one instance of activity in a 12-month period-is 792.8 million or 43.8%, compared to 39.5% in 2007.
The top five U.S. loyalty program market sectors represent 63% of total U.S. loyalty program memberships. Memberships ranked by industry are as follows (in millions):
- Financial Services 422.0
- Airline 277.4
- Specialty Retail 191.3
- Hotel 161.8
- Grocery 153.3
- Mass Merchants 124.8
- Gaming 106.0
- Department Stores 92.8
- Drug Stores 73.9
- Fuel Convenience 51.2
- Restaurant 13.7
- Car Rental and Cruises 10.7
- Other 127.9
Financial services took over the top spot from airlines, after seeing a 77% increase in credit and debit reward card program memberships in just two years. The growth was fueled by the dramatic expansion in consumer credit.
The 2009 census is based on information from Colloquy's archives, program Web sites, sponsor-company press releases, annual report filings, third party publications and research reports.
Full story at: http://tinyurl.com/ck7pvc
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