New Study by Clarus Commerce Reveals 70 Percent of Consumers Want Their Favorite Brands to Offer Premium Loyalty Programs

USA - English

• USA - English

ROCKY HILL, Conn., July 10, 2019 /PRNewswire-PRWeb/ -- Today consumers have virtually unlimited brand choices at their fingertips, making it more difficult for brands to lock down their loyalty than ever before. To develop a deeper connection with their customers, an increasing number of retailers are implementing premium loyalty programs — and they're working. In fact, more than half of consumers (58%) belong to a premium loyalty program today and almost two-thirds (65%) plan to sign up for one in the next year, according to a new study by Clarus Commerce, the only company specializing in building, managing and optimizing premium loyalty programs. Even more importantly, 31% of consumers say they have yet to join a premium loyalty program because the retailers they shop with don't offer them.

Premium loyalty programs are gaining momentum among retailers because they provide customers with instant, 24/7 access to top-tier benefits. Instead of earning discounts or coupons after they've completed a transaction, a retailer's most dedicated customers can pay an annual or monthly membership fee to get what they want, when they want it.

To better understand how premium loyalty is driving increased brand engagement over traditional points systems, Clarus Commerce surveyed 1,000 U.S. consumers about their preferences for these programs and what they expect from the retailers that offer them. The "2019 Premium Loyalty Study" found that premium members are twice as likely to use their programs than those who participate in traditional ones, and 87% of consumers who are satisfied with a retailer's premium program will likely choose that retailer over a competitor that is offering a lower price.

Additional key findings from the report include:

• Premium loyalty is the natural next step after a points program: While they offer different benefits, the two can coexist to serve the entire customer base. In fact, 73% of consumers are likely to invest in a retailer's premium loyalty program if they already belong to that retailer's free loyalty program.
• Consumers want a balance of transactional and experiential benefits: The top three benefits that would motivate a consumer to invest in a premium loyalty program include instant discounts that can be used whenever they shop (67%), faster, free shipping (61%) and free giveaways (56%).
• Premium loyalty programs are an opportunity to win over millennials: Eighty percent would be willing to join a premium loyalty program if their favorite retailers offered them and the benefits were valuable, compared to 68% for non-millennials.

"Customer loyalty isn't acquired overnight, so it's important for retailers to build it through a series of positive brand interactions and moments," said Tom Caporaso, CEO of Clarus Commerce. "Premium loyalty programs support this strategy by allowing retailers to consistently engage with customers across multiple touchpoints and provide personalized, exclusive benefits that make customers feel truly special and valued. This is what creates that deeper, more meaningful connection to the brand, and builds consumer trust over time."

To download the full report and learn more about the value of premium loyalty programs, visit here.

About Clarus Commerce
Clarus Commerce is the only company solely focused on building, managing and optimizing customizable premium loyalty programs for retailers. The company provides the full suite of services needed for a successful loyalty program, which includes the technology platform, client services, strategy, creative, marketing, analytics, IT and operations. Clarus Commerce was founded in 2001 and is headquartered in Rocky Hill, Connecticut. For more information, please visit http://www.claruscommerce.com.

SOURCE Clarus Commerce