Fears for Tiers

Fears for Tiers

The 2014 COLLOQUY research study on consumer attitudes toward membership status in loyalty programs concludes that tiered loyalty programs are heavily weighted on the top and bottom tiers with the gap widening. With advances in technology making it easier than ever for consumers to connect with, and take advantage of their favorite loyalty programs, tier programs have the potential to be highly effective. Trends in tiered loyalty programs however, seem to be reflecting national income statistics. Those with incomes less than $50,000 are approximately 50 percent less likely to reach the higher levels of tier programs than those with incomes over $100,000. While 80 percent of members of the lowest tier levels say that they participate in and use their favorite loyalty programs whenever possible, they are twice as likely to feel discouraged by the difficulty of the requirements for meeting the highest tier levels. A general lack of knowledge of tier levels and an overall feeling that they are not properly acknowledged for their participation, seems to be leading to a lack of participation from members in the bottom tiers. For members of travel loyalty programs, upgrades, special services and the ability to share perks with friends and family are among the best motivators according to the study.

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