Colloquy.com announced the release of a new white paper study that analyzes household participation in loyalty programs. They found that total membership in US loyalty programs is around 1.3 billion, and that the average household belongs to 12 (but is only active in about 5).
The findings include a recommendation that loyalty programs remove their inactive members in order to improve the programs’ success. This is something the programs don’t want to do, because they like to boast high membership numbers.
I think maybe the best thing to do is to keep all members, but to segment or tier the programs’ promotions and rewards in order to entice participation.
Anyway, the full report is available free of charge here (registration required).
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