Wealthy want rewards too
Amazon among most popular schemes for affluent
Nearly three quarters of wealthy Americans (earning over US$150,000 a year) are members of at least one loyalty programme.
A survey of affluent consumers by the Luxury Institute found that, of the 72% of wealthy consumers who participate in some kind of reward scheme, the most popular ones are linked to credit cards, airlines, hotels and grocery stores.
Previous research from the Luxury Institute, a representative body for high net-worth customers, found that the make-up and beauty retailer Sephora, American Express and Amazon are the top three favourite rewards programmes among affluent consumers.
Men are significantly more likely to be members of airline and hotel rewards programmes, while women are disproportionately represented in schemes sponsored by grocery stores, drugstores and department stores.
Very few respondents said they belonged to a luxury brand rewards programme. The main perceived benefits of luxury brands’ loyalty programmes are special offers and rewards, earning and redeeming points, and free goods and services. Free gifts carry more importance among women, shoppers under 50, and those with net worth less than US$1m.
Satisfaction with existing loyalty schemes is high and most high-income shoppers say that they have had positive experiences with their memberships. The vast majority of shoppers report that loyalty programmes exert a strong influence over purchasing decisions.
“Loyalty programmes combined seamlessly with one-to-one customer relationship building can be highly effective in driving conversion and retention while making data collection easier,” says Luxury Institute CEO Milton Pedraza.