Loyalty programs are intended to encourage participants to spend more money in the stores of the brand sponsoring the programs, but the programs must be carefully implemented to stand out from the rest and to encourage affluent consumers to spend more, according to a study done by Unity Marketing.
“Over three-quarters of all luxury consumers are members of at least one loyalty program, so starting such a program is clearly not difficult,” said Pam Danziger, president of Unity Marketing. “What luxury brands and retailers need to learn are the key attributes of their brand as viewed by their customers so that they can design their loyalty programs to be appealing to their unique customer base.”
Loyalty programs are not a new phenomenon, but what is new is how strongly loyalty programs influence the spending of young affluents. Young affluent consumers who are members of loyalty programs spend twice as much as average luxury consumers, said Danziger.
According to Unity Marketing, those who design, market and sell luxury goods and services can find facts to support developing and implementing a program in the recent special report on loyalty programs included with the Luxury Tracking Study. Those interested in learning more about loyalty programs for luxury consumers should contact Pam Danziger at pam@unitymarketingonline.com or (717) 336-1600.
