While 70% of consumers prefer to manage loyalty programs through apps, only 26% of brands provide the capability to do so. And that is only sign of a disconnect, according to an analysis by Incisiv in partnership with Punchh.
The study shows that 85% of customers across the convenience, grocery and QSR sectors choose digital as the starting point for their buying journey.
But convenience depends on the retail sector. For instance, 70% of convenience and QSR chains provide auto-enrollment, but only 36% of grocery chains do so.
This split also exists in the area of rewards. While 52% of QSR chains offer a surprise gift or rewards on special occasions, only 10% of grocers and 8% of convenience chains have adopted this capability.
Moreover, only 16% of brands assessed offer instant redemption of loyalty points -- although 75% of customers want it, according to the study.
One way to boost involvement is to send emails with redemption guidelines, the study says. Huck’s sends members an email with details on the redemption process and pictures.
Customer behavior is “a moving target, and the industry must evolve to meet expectations, especially as customer loyalty becomes harder to attain,” says Amar Mokha, chief operating Officer, Incisiv.
Incisiv assessed fifty top brands across the convenience, grocery and QSRs, based on 78 attributes.