A substantial 65% of credit or debit card users prefer to patronize brands or merchants with whom they hold membership in loyalty or rewards programs. Moreover, the 34% of consumers are open to trying out new brands or merchants, while 23% fall into the category of occasional shoppers who infrequently visit specific brands or merchants.
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GLOCard reward programs have emerged as a highly effective tool for fostering customer loyalty across various industries, particularly in the travel sector, which is experiencing a resurgence after enduring significant losses in recent years.
This insight stems from the PYMNTS-Banyan study titled “Leveraging Item-Level Receipt Data: How Card-Linked Offers Drive Customer Loyalty,” which surveyed over 2,000 consumers in the United States. The study sought to grasp their interest in loyalty and rewards programs, their inclination towards card-linked offers, and how merchants can enhance awareness and utilization of such offers. The
In essence, the report reveals that a substantial 65% of credit or debit card users prefer to patronize brands or merchants with whom they hold membership in loyalty or rewards programs. Moreover, the study indicates that 34% of consumers are open to trying out new brands or merchants, while 23% fall into the category of occasional shoppers who infrequently visit specific brands or merchants.
Interestingly, personalized card reward programs garnered significant favor among consumers, with 4 in 10 expressing a preference for cards tailored to their individual needs and preferences.
Specifically within the travel sector, PYMNTS Intelligence discovered that nearly 64% of consumers are highly inclined, if not extremely likely, to utilize card-linked offers for local travel expenditures in the coming three months. Similarly, 60% intend to do the same for expenses associated with long-distance travel.
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The notable statistics underscore the significant potential that merchants in the travel industry have to enhance engagement and retain customers through the implementation of more personalized and pertinent card-linked offers that align with the specific needs of customers.
In fact, roughly half of millennials, comprising 49% of consumers with children, and 44% of individuals who have recently begun interacting with brands or merchants, express a willingness to switch to businesses that offer tailored card-linked programs for specific products. Similarly, our research reveals that 50% of millennials, 50% of consumers with children, and 48% of new customers are inclined to shift their preferences towards merchants providing specialized programs designed exclusively for their business.
The study further asserts that harnessing item-level receipt data can empower travel merchants to fully seize this potential. Through the analysis of this data, merchants can craft offers based on insights gleaned from loyalty programs and customer behavior, effectively engaging current customers and drawing in new ones.
Furthermore, customers who have availed themselves of these programs express notably high levels of satisfaction, particularly when offers are customized to align with their individual preferences. This presents merchants with an invaluable opportunity to foster loyalty and encourage increased spending.
Lastly, the report underscores the significance of merchants, card issuers, and card-linked offer platforms in promoting and heightening consumer awareness regarding card-linked offers. This is especially crucial for the nearly 40% of consumers who have yet to utilize card-linked offers due to a lack of familiarity with these programs. Educating consumers about the workings of these programs and the benefits they offer has the potential to unlock value in the form of an expanded card member base and increased purchase volume.
Source: PYMNTS
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