• by Tanya Gazdik , July 10, 2009

U.S. consumer participation in rewards programs is on the rise across all demographic segments, according to Colloquy, the Cincinnati-based loyalty marketing consultancy. The study reports a 19% participation growth by the general population since 2007.

Participation by Millennials (ages 18-25) has climbed 32% since last measured in 2007. Women as a demographic are up 29% in the same time period, according to the consultancy's white paper, "After the Meltdown: Consumer Attitudes and Perceptions About Loyalty Programs in the Post-Recession Economy."

With the economy still depressed, it makes sense that consumers are leaning on loyalty programs to stretch household budgets further by earning rewards for their purchases. The retail category demonstrates the highest positive impact in reward program attitudes, with 75% of 2,152 surveyed reporting a net neutral or positive effect on their program participation as a result of the economy. The financial services sector remained relatively flat, with 52.7% reporting "no difference" in the impact of the recession on program participation.

The study examined trends in six consumer segments: "General Population" representing a statistically distributed sample of the U.S. overall; "Affluent" (heads of household with annual incomes of $125,000 or greater); "Millennials" (any respondent 18 to 25 years of age); "Seniors" (any respondent 60 years or older); "Core Women" (any female respondent age 25 to 49 with an annual income between $50,000 and $125,000); and "Emerging Hispanic" (any respondent age 21 or older of Hispanic origin with an annual household income of $40,000 or less.

Loyalty participation by Millennials has increased significantly since the last benchmarking study in 2007. Recalled participation rates in this demographic stand at 58%, a 32% increase from two years ago. Nearly half (46.4%) of responding Millennials rate retail rewards programs as "more important" during the recession. This outpaces the general population, at 32.3% for the same category. Furthermore, 27% of Millennials are actively seeking to enroll in new programs to help expand their budgets. Not surprising given their affinity for new technology, Millennials are far more likely to enjoy engaging with programs through new media channels than the general population. Over 55% appreciate communicating through social networking sites (39% for general population), and 52% enjoy communication via cell phone or text message (38% for general population). "Millennials represent a golden opportunity in a time of economic darkness for loyalty marketers," says Kelly Hlavinka, Colloquy partner and co-author of the white paper. "This demographic is receptive to the wish-list of loyalty initiatives -- eager to join programs, eager to build relationships with their favorite brands and eager to engage with new media channels. This shows a powerful opening for loyalty marketers to build sustainable loyalty with the next generation of American consumers."