As retailers strive to satisfy the increasing digital demands of consumers, loyalty programs might pose a challenge, according to research by PYMNTS Intelligence.
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GLOThe study, titled “2024 Global Digital Shopping Index: U.S. Edition,” conducted in partnership with Visa Acceptance Solutions, utilizes data from a survey of over 2,400 American consumers to illustrate the ascent of Click-and-Mortar™ shopping experiences — ones that blend digital and physical retail elements — in the United States.
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The findings indicate that retail customers express a desire for reward or loyalty programs to be integrated into their Click-and-Mortar™ shopping experiences. However, a notable 28% of consumers are unable to locate this feature when they search for it, indicating that it is one of the areas where merchants often fail to meet shoppers’ expectations.
Providing some context to the data, many retailers are actively seeking the most efficient methods to provide loyalty benefits to consumers. Jeanniey Walden, Chief Marketing Officer at Rite Aid, emphasized in an interview with PYMNTS that the retailer is dedicated to understanding customer behaviors and preferences to create personalized experiences and offers. Walden explained that Rite Aid identified eight main reasons for customers to shop at their stores, using this data to inform the design of their loyalty programs.
Recently, Target announced a redesign of its Target Circle program, aiming to resemble subscription services like Amazon Prime or Walmart+. The updated program will include a paid membership option offering benefits such as free same-day delivery through the retailer’s delivery aggregator Shipt, as well as free two-day shipping from Target, among other perks. Target’s executive vice president and chief guest experience officer, Cara Sylvester, expressed the company’s commitment to strengthening relationships with customers through the revamped program, aiming to provide enhanced value and convenience while fostering a more personalized and rewarding shopping experience.
Source: PYMNTS
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