Have Loyalty Card, Will Not Redeem Points
Does your keychain hold more loyalty card fobs than keys?
If you are part of the typical American household, then the answer could very
well be yes. According to the 2011 Colloquy Loyalty Census, the average
household holds 18 loyalty program memberships.
Today, there are over two billion
memberships in the U.S., up 16 percent from 1.8 billion in 2008. In Canada,
the number of memberships has grown roughly four percent since 2009.
to Colloquy, the total value of points (and miles) issued to U.S. members in
2010 came to $48 billion. Roughly one-third of those rewards, however, go unclaimed.
survey of consumers by Capital One Financial found that 57 percent of consumers
had not redeemed points in the past three months. According to a Dow
Jones Newswires report, "Cardholders often cited the difficulty
of redeeming the rewards, a lack of flexibility or a dearth of attractive redemption
A New York Times piece suggests that companies offering
rewards should work together to make programs more "interchangeable." The
same piece pointed to Upromise as one of the few programs where consumers could
accrue points from "competitors within industries and companies in different
a single account.
A blog by Sonali Verma on The Globe and Mail website
equated loyalty programs with religion. "Either you’re a true believer,
or you’re not. The first group loves the idea of getting something for nothing.
(One of my colleagues went all the way to China and back on her reward points.)
The second group cannot be bothered to collect points, even if it means leaving
money on the table."
- The Billion Member March: The 2011 COLLOQUY Loyalty Census Growth and Trends
in Loyalty-Program Membership and Activity – Colloquy
- All About Your Unused Rewards Points – The New York Times
- Capital One: Card Rewards Programs Fluster Some Consumers – Dow Jones Newswires/The
Wall Street Journal
- Points of no return: Tips on rewards – The Globe and Mail
Discussion Questions: Is it a good or bad thing from a business perspective that so many consumers have loyalty cards yet don’t redeem perks? What would constitute the perfect loyalty program in your mind?