PYMNTS Intelligence reveals that 65% of credit or debit card users prefer shopping with brands or merchants that offer the loyalty or rewards programs they participate in.
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GLOGrocery store loyalty programs have historically been popular due to their ability to foster customer loyalty and provide concrete benefits to shoppers. However, these programs serve a crucial function during periods of inflation, offering advantages for both the grocery store and the consumer.
These loyalty programs, often offering discounts, cashback, and exclusive promotions, encourage customers to repeatedly shop at the same grocery store. Yet, their significance goes beyond mere convenience and savings, particularly during times of inflation.
Research conducted by PYMNTS Intelligence reveals that 65% of credit or debit card users prefer shopping with brands or merchants that offer the loyalty or rewards programs they participate in.
Recognizing this significance, Giant Eagle has introduced the myPerks Pay Rewards Visa Card.
Dan Magrish, senior director of payment strategy and strategic partnerships at Giant Eagle, highlighted the rationale behind the myPerks Pay Rewards Visa Credit Card program, aligning it with the evolving consumer trend of using rewards for everyday essentials like groceries and fuel.
Moreover, insights from PYMNTS indicate that card-linked offers can be a valuable tool for grocers aiming to bolster customer loyalty and increase their market share, reaching approximately 50% of all shoppers.
A recent report by PYMNTS Intelligence, “Leveraging Item-Level Receipt Data: How Card-Linked Offers Drive Customer Loyalty,” found that a significant percentage of individuals showed interest in participating in product-specific card-linked offer programs in the next three months and had a high likelihood of using these offers for grocery purchases during the same period.
In the midst of ongoing economic challenges, maintaining the loyalty of grocery shoppers has become a significant challenge. A separate study by PYMNTS Intelligence revealed that 44% of grocery shoppers actively seek deals, while only 17% consider themselves loyal customers who consistently stick to specific brands.
In response, Kroger, the largest pure-play grocery retailer in the U.S., has been leveraging digital promotions through its app and website to entice customers to return.
CEO Rodney McMullen mentioned on an earnings call the company’s strategy of increasing customer engagement through personalization and more targeted and effective promotions, fostering increased loyalty.
While many grocery brands primarily rely on in-house loyalty programs, card-linked offers can serve as a valuable addition to their strategy, despite potential drawbacks.
The myPerks Pay Rewards Visa Card by Giant Eagle offers various benefits, including a $50 “Welcome Bonus” upon approval and first purchase. Cardholders receive perks on fuel and various purchases, including dining, earning perks faster and experiencing a differentiated shopping experience.
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