Majority of Catalogers Offer Loyalty Programs for Free

According to a recent loyalty marketing survey from the Direct Marketing Association in partnership with the loyalty marketing publisher COLLOQUY, 66.7 percent of catalogers offer their loyalty programs to customers for free. The survey polled 250 respondents from the catalog; supermarket and grocery store; hotel and restaurant; retail and department store; and bank and credit card industries. Here are some more findings of the survey.

* 25 percent of catalogers said they charge different membership fees depending on the level of the loyalty program, and less than 10 percent charge one nominal fee to customers who join;

* overall, more than 70 percent of the respondents said they offer free enrollment to their loyalty programs;

* 15.5 percent of respondents said they tier their fee structures and rewards programs;

* 73.7 percent of supermarket and grocery store respondents use face-to-face interactions to invite customers into their loyalty programs;

* 64.7 percent of hotel and restaurant respondents have a proprietary loyalty program in place, rewarding customers with their own products/services; and

* according to retail and department store respondents, member upgrades are the rewards most likely to be redeemed, with an average of six out of a possible seven doing so.