Editor's note: This article appeared in the July 12, 2010, edition of Quirk's e-newsletter.
Consumer attitudes and perceptions concerning reward programs are shifting in response to the current economic environment. Instead of waiting for points to build up, 44 percent of consumers prefer lower-value rewards that provide more immediate gratification, such as rebates applied to a statement, discounts or gift cards, according to The Future of Reward Programs, a study from Synergistics Research, Atlanta.
This uptick in quick rewards represents a significant increase in popularity since 2006 when only one-quarter preferred this type of reward. Higher-value long-term rewards - those that build up over time and can be used for large-value items such as airline flights or hotel stays - are preferred by 16 percent of consumers, representing a decrease from 2006 when 33 percent preferred long-term reward. Twenty-four percent indicate that they like to split their participation between long-term and short-term rewards.
"Consumers are much more oriented toward immediate rewards and have adopted a 'show me the money' attitude. And some rewards may now seem frivolous to consumers. Providers need to be aware that rewards marketing is changing and that programs will need to be adapted to the changing consumer perspective," says Genie M. Driskill, COO of Synergistics.