Are Kum & Go and Del Taco Doing Loyalty Programs Right?

Loyalty programs can take many forms. From a punch-card style program where customers eventually get an item after a certain number of purchases to subscription-based models where members get exclusive perks. But across each model, the consistent theme is additional value for customers.

And people love loyalty programs. In a recent Flash Points consumer survey, 97% of respondents indicated they are part of a loyalty program. Here we’ll look at some other highlights from this survey and how it relates to recent updates made by Kum & Go and Del Taco.

Loyalty Programs by the Numbers

As mentioned previously, 97% of consumers recently reported being a member of a loyalty program — up 3% from last year. More consumers reported being loyalty members across most industries with a slight drop in automotive and other. But the biggest gain has been for grocery and convenience stores.

It’s important to note that loyalty does not mean exclusivity. We found that 84% of consumers are loyalty members with more than one brand within the same industry.

Readers of our last blog on loyalty programs will know that 76% of consumers said they are more likely to shop with a brand that has a loyalty program over one without. But the latest Flash Points survey revealed 74% will even go out of their way to shop where they are a loyalty member.

Doing Loyalty Programs Right

The #1 reason some consumers are not part of a loyalty program remains the belief that it takes too long to build up enough points to redeem for a reward. And this is what brands like Kum & Go and Del Taco are working to address.

Kum & Go recently refreshed their &Rewards loyalty program along with their new mobile app. One of the primary changes is that &Rewards points will accumulate faster on purchases. This means members can redeem rewards sooner. Additionally, the Kum & Go app will feature a personalized interface with recommendations based on past activity.

Del Taco has also made updates to their program this summer. The brand's Del Yeah! Rewards loyalty program is a tiered one. This means that, in order to access certain rewards, members not only need enough points for that reward but also enough total points to access the relevant reward tier. The latest updates made by Del Taco both reduce the number of points required to access higher tiers as well as the number of points required for certain rewards.

Increasing the number of points earned for purchases or reducing the points required for a reward both have the same outcome. Consumers can access loyalty rewards faster - addressing the #1 consumer complaint. Loyalty programs that can best address this concern will not only attract new members but also incentivize existing members to use the program more.

All the data above was collected as part of Intouch Insight's ongoing Flash Points consumer surveys. This data enables brands to make informed decisions. Whether you’re looking to improve your loyalty program or another initiative, we’re here to help!

Collect your own data with a free trial of IntouchSurvey™ or tell us what you want to know and get your question into an upcoming Flash Points survey.