Loyalty Surveys- the Rewards and Incentive Industry has a Long Way to Go

Customer rewards programs have long been used by business establishments and credit card companies. Not only does it bring great return of investment to the company, it also serves as a ‘come in’ for new and prospective customers, too. Unfortunately, with the rate and stature of the economy worldwide, some companies are finding it tough to come up with freebies for customers.

Recent survey results from Swift Exchange shows that program liability and costs are the primary challenges faced by companies, who provide customers with loyalty incentive packages. Just last April of this year, the Swift Exchange conducted a Loyalty Pulse Survey, which highlighted many flaws in the services provided by the companies involved in the loyalty and incentive market.

The survey was conducted at the Freddie Awards, wherein Swift Exchange received an award for its sponsorship of a 1988 event. According to Richard Postrel, Chief Executive Officer and Founder of Swift Exchange, “modern day loyalty programs have reached the limits of their current technology and methodology.” He added that, “fundamental macro-economic issues must be addressed in order to advance this industry into the next generation. What we are seeing is an industry that is ripe for transformation. This is a wake-up call for the entire reward and loyalty industry,” he concluded.

Companies involved in the rewards and loyalty business who responded to the survey spoke up. As much as 49 per cent of the companies in the industry claimed the liabilities and costs required to maintain an incentive program is “challenging”. The other 38 per cent resolved that managing the costs of their incomes and loses altogether has become “more challenging” (due to the economy).

There were also respondents who were asked to judge the current state of cooperation between reward providers and business owners. According to 58 per cent of responders, there is indeed a much higher need for a better partnership between reward providers and business owners. The two parties should work hand in hand to maximize profits while, balancing their loses.

According to Nancy Gordon, Chief Operating Officer of Swift Exchange, "the new Swift Exchange LoyaltyPulse Survey highlights what we've been consistently observing for a long time. It also brings to light the unprecedented frustration experienced by all industry constituents – consumers, merchants and reward providers alike. The bottom line is that there is a crying need for a new model that transforms the conventional approach to liquidity, transparency and usability of reward points and miles."

Indeed, customers are always complaining about the terms and conditions of rewards programs. Some say it’s difficult to earn the points, and much more complicated to claim the rewards. The typical complaint of merchants revolves around the cost to pay for such loyalty programs. The loyalty and rewards industry is promising, because more and more consumers are leaning towards brands who give them extra value for their money. However, if the industry is to prosper, merchants and rewards providers must create a better model to make the whole process run smoothly.