Merkle, Merkle, dentsu’s leading technology-enabled, data-driven customer experience management (CXM) company, unveiled its 2023 Consumer Prizing Report examining how consumers evaluate and choose rewards from brands. The report illuminates a shift from what was once considered “nice to have” to what is now deemed “must have” or essential to consumers with nearly three-quarters (3/4) of respondents sharing a preference for grocery gift cards over spa massages.
Merkle polled more than 1,100 consumers in the United States across generations and income brackets, exploring the consumer preferences and desired benefits of consumer loyalty programs and promotions, including how sentiment has changed given inflation and the increased cost of consumer goods.
“The report highlights how brands can improve prize and incentive strategies to drive desired consumer behaviors through promotions, branded games, chance to win experiences, and loyalty programs. Consumers prefer options that are convenient and make everyday lives easier,” said Jen Gray, SVP of experience creative, promotion & loyalty solutions at Merkle. “Consumer sentiment has predictably shifted as people are keeping a closer eye on the household budget.”
Key findings from the Consumer Prizing Report include:
“It’s no surprise that consumer preferences have shifted given the dynamic external environment,” said Gray. “Additionally, consumers are savvy and will chose a benefit to suit their needs. The insights in this report will help marketers improve engagement rates, while deepening the customer relationship. Adjusting the rewards strategy to match customer preference is critical to ensure high retention rates. Marketers who do not will experience customer churn.”
To view the full report, please visit here.