PYMNTS Intelligence conducted a survey of over 2,000 U.S. consumers in July. The findings unveiled that nearly 60% of individuals who are inclined to participate in a product-specific card-linked offer program within the next three months — roughly constituting half of the consumer population — express a high likelihood, described as "very" or "extremely," of using card-linked offers for their grocery purchases during the same timeframe.
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GLOIn their quest to enhance customer loyalty and encourage adoption, grocers can tap into the potential of card-linked offers, which have the capacity to capture the interest of approximately half of all shoppers.
By the Numbers
In their recent report titled “Harnessing Receipt Data at the Item Level: The Impact of Card-Linked Offers on Building Customer Loyalty,” PYMNTS Intelligence conducted a survey of over 2,000 U.S. consumers in July. The objective was to gain insights into consumer engagement with card-linked offers, among other related topics.
The findings unveiled that nearly 60% of individuals who are inclined to participate in a product-specific card-linked offer program within the next three months — roughly constituting half of the consumer population — express a high likelihood, described as “very” or “extremely,” of using card-linked offers for their grocery purchases during the same timeframe.
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The Data in Context
In the midst of ongoing economic challenges, retaining the loyalty of grocery shoppers has proven to be a formidable task. According to research from PYMNTS Intelligence, 44% of grocery shoppers actively seek deals, willing to shop wherever they find the most competitive prices. In contrast, only 17% identify themselves as loyal patrons of specific brands.
Kroger, the leading pure-play grocery retailer in the United States, has adopted a digital approach to keep customers returning. Chairman and CEO Rodney McMullen discussed their strategy during a recent earnings call, emphasizing their efforts to enhance customer engagement through personalization and targeted promotions. The seamless digital ecosystem they’ve developed is aligning with customer preferences, fostering increased loyalty.
While many grocery brands rely primarily on their own loyalty programs to entice customers back, card-linked offers are emerging as a valuable supplementary tool, despite some inherent limitations.
Jehan Luth, CEO of FinTech company Banyan, expressed his perspective on card-linked offers in a December 2022 interview with PYMNTS. He described them as a somewhat blunt instrument in a retailer’s marketing arsenal. One of the primary reasons for this bluntness is the inability of retailers to direct traffic toward specific products. However, Luth proposed that by incorporating SKU-level or item-level data into rewards and offers, card-linked offers become a more versatile and potent tool for retailers. This approach enables retailers to guide customers towards specific store categories or individual items, providing a more tailored and compelling shopping experience.
Source: PYMNTS
