Card reward programs — particularly personalized ones — build customer loyalty, as most consumers shop with brands and merchants where they are members of a loyalty or rewards program.
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GLOThe majority of consumers tend to shop with brands and retailers with which they hold memberships in loyalty or rewards programs. Furthermore, four out of every ten consumers express a preference for cards featuring customized rewards, citing these programs as effective means to foster customer allegiance. Additionally, a notable one-third of respondents indicate a willingness to switch their shopping habits to merchants that extend card-linked offers, underlining the significant sway of such incentives in influencing consumer behavior.
Nonetheless, there’s a clear need for merchants and card issuers to ramp up their marketing efforts. While 41% of consumers in general made use of card-linked offer programs in the past year, a significant 38% of those who did not partake mentioned a lack of familiarity as a key deterrent. This underscores the importance of raising awareness and educating consumers about the benefits and accessibility of such programs.
The insights mentioned above are part of the discoveries outlined in the collaborative report “Leveraging Item-Level Receipt Data: How Card-Linked Offers Drive Customer Loyalty,” conducted by PYMNTS Intelligence in partnership with Banyan. This comprehensive study delves into the ways in which merchants leveraging item-level receipt data can deploy card-linked offers to enhance consumer interaction and bolster customer allegiance. The research involved a survey of 2,069 U.S. consumers conducted between July 17 and July 20. The objective was to glean insights regarding their interest in loyalty and rewards programs, their inclination towards card-linked offers, and how merchants can effectively boost awareness and utilization of such programs.
Card reward programs — particularly personalized ones — build customer loyalty, as most consumers shop with brands and merchants where they are members of a loyalty or rewards program.
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A significant 65% of card users exhibit loyal shopping behavior, indicating that they recently made purchases with brands or merchants affiliated with a loyalty or rewards program within the past 30 days. Amongst all age groups, millennials stand out as the most inclined towards brand loyalty and are also the demographic most open to becoming new customers, solidifying their status as a pivotal segment for card rewards programs.
Consumers who have used card-linked offers in the last year are highly satisfied with these programs, especially millennials, new customers and consumers with children.
Card-linked offers play a crucial role in maintaining customer engagement, leading to increased purchasing behavior. Additionally, individuals who have taken advantage of card-linked offer programs express high levels of satisfaction, regardless of whether the offers were tailored to specific products or merchants.
Notably, demographics such as millennials, new shoppers, and consumers with children are not only more inclined to use card-linked offers, but they also exhibit higher satisfaction rates compared to the average consumer. This trend is particularly evident in the case of product-specific card-linked offers, with 85% of bridge millennials, 75% of new shoppers, and 69% of consumers with children expressing a high degree of satisfaction with these tailored promotions.
More than 6 in 10 consumers report they wi ll use card-linked offers when spending on travel, professional services or groceries in the next three months.
A substantial 64% of consumers utilizing card-linked offers anticipate using them in the coming three months, particularly for local travel expenses. Moreover, approximately 61% of respondents express a similar intention for expenditures related to professional services, long-distance travel, and groceries. Over half of those surveyed plan to leverage card-linked offers for digital streaming services (54%), restaurant dining (53%), and retail purchases (51%).
Despite this keen interest in card-linked offers, merchants may be missing out on a significant portion of potential customers due to a lack of consumer familiarity with these programs. To bridge this gap, it may be imperative for merchants to ramp up their marketing efforts and campaigns to promote greater adoption and utilization of card-linked offers.
Source: PYMNTS
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