Although 75% of consumers surveyed approved of retailers giving special treatment to loyalty program members, 32% of American and Canadian shoppers said they don’t know which tier they fall into even in their own favorite retail rewards memberships, according to a report entitled "Fears for Tiers: 2014 Colloquy Study on Membership Status in Loyalty Programs" by loyalty consulting company Colloquy.
Multiple-tiered programs with “gold, silver, and bronze” levels are outdated and cause confusion for consumers, Colloquy found. The company in February surveyed 3,077 consumers in the U.S. and Canada.
Half of those surveyed said they spend more or otherwise change their behavior because they want to achieve a higher level in a rewards program, and 33% in lower loyalty tiers don’t think they’re properly rewarded for their loyalty, the survey also found.
This survey showed at once the value of loyalty programs as well as the way they can turn off customers. In this tough retail environment, companies should take a close look at their loyalty program structures and ensure that they reward those customers who favor them.