the first club™ Gives Insight into the Future of Loyalty Programs in New Whitepaper, “Loyalty: Looking Forward”

loyalty looking forward Give Loyalty Program Members What They Want, When They Want It with Digital Content

Los Angeles, February 09, 2011 – Airlines, Hotels, and Retailers take notice: the popularity of loyalty programs is growing; but so is the dissatisfaction over program benefits and rewards when it comes to the high number of points or miles necessary for redemption, and rewards that consumers recognize to be valuable.

Brands must understand this new evolution of loyalty consumer demand, and a new whitepaper from the first club™ “Loyalty: Looking Forward: The State of the Loyalty Industry and its Digitized, Instant Future” provides insight into the next generation of loyalty programs. “Loyalty: Looking Forward” focuses on the challenges of low motivation at the lower spectrum of loyalty program customers. What can brands do to prevent flight of customers who maintain low accumulations of points? The broad answer: provide incremental rewards that are relevant to the consumer, easily attainable, and instantly available through digital content.

68% of consumers feel that a loyalty program can strengthen their relationship with a brand, and successful rewards programs will cater to this demand for relevant offerings by providing a wide array of instantly-available digital content. “Loyalty: Looking Forward” provides specific industry data for airlines, hotels, and retailers: information that is essential to the loyalty program manager striving to prepare for the digital reward evolution.

A look inside “Loyalty: Looking Forward”:

Digital Content
48% of consumers spend more with a company whose loyalty program offers content that is relevant to them personally. 65% have purchased digital content online. It is imperative, therefore, that brands implement programs that offer a wide array of content that is available digitally and easily.

The modernization of airline FFPs to include digital rewards will substantially decrease airlines’ exposure to financial liability (by encouraging the incremental redemption of miles), and will resonate with consumers who clearly desire more value from their airline loyalty program.

In today’s online deal-shopping atmosphere, consumers are less responsive to in-hotel premium services. The days of offering elite “status” or premium service for customer loyalty are eroding. The new day requires an offer or promise of tangible added value: 47% of consumers are motivated to join programs that provide instant gratification.

Offering direct discounts for loyalty program members gives retailers the ability to immediately impact consumer decisions; these discount incentives, however, are easily duplicated by competitors. The result: price wars within the segment. Instead, companies have market expansion opportunities via loyalty programs or promotions that engage consumers.

“Loyalty: Looking Forward” provides:

- A look at what digital content consumers are demanding.
- Explains how digital rewards provide hotels a cost effective opportunity to match these consumer demands.
- Explains how cross-promoting across brands through digital rewards will expand a retailer’s market and increase margins.

Featuring latest statistics and defining characteristics of various industry loyalty programs presented by the first club™, “Loyalty: Looking Forward” will help program managers grasp emerging loyalty trends and their digitized, instant future. To download a copy of the whitepaper, please visit or contact Vanessa Horwell at for more information.

the first club™ Gives Insight into the Future of Loyalty Programs in New Whitepaper, “Loyalty: Looking Forward”

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