Recent report by PYMNTS Intelligence and Banyan looks into leveraging item-level receipt data and customer loyalty: 65% of card users who shop with brands or merchants where they are members of loyalty or rewards programs • 41% of card users who have used a card-linked offer program in the last 12 months • 38% of consumers who have not used card-linked offers because they lack familiarity with these programs.
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GLORecent report by PYMNTS Intelligence and Banyan looks into leveraging item-level receipt data and customer loyalty.
73% of Card Users Say They Prefer Cards with Linked Offers — But Just 41% Used Them
Card-linked offers can attract new customers, but data shows merchants and issuers need to boost awareness to reap the benefits. PYMNTS Intelligence’s recent survey of 2,069 U.S. consumers finds that one-third are likely to switch to merchants that offer card-linked offers — yet 38% of holdouts have not used these rewards because they do not know they exist.
According to “Leveraging Item-Level Receipt Data: How Card-Linked Offers Drive Customer Loyalty”:
- 65% of card users who shop with brands or merchants where they are members of loyalty or rewards programs
- 41% of card users who have used a card-linked offer program in the last 12 months
- 38% of consumers who have not used card-linked offers because they lack familiarity with these programs.
Among different generations, millennials are the most loyal customers to brands or merchants – 32% of consumers considered loyal (those belonging to a loyalty or reward program) are millennials. There is some truth to purely age-based expectations, as 28% of these loyal consumers are baby boomers and seniors. Only 13% come from Generation Z, the least loyal age cohort of all.
Older generations, such as baby boomers and seniors can have built familiarity and comfort with brands for a longer time and may be reluctant to explore new products. However, data showed that this simple assumption is not quite accurate.
Recent trend amoung companies and merchants is to explore item-level receipt data to offer card-linked deals and offers that increase revenue, traffic and improve customer loyalty.
According to the study, 65% of card users shop with brands or merchants to which they are loyalty or rewards program members. If millennials are most likely to be loyal, it may be because they claim to be more satisfied with the use of card-linked loyalty programs than other generations, with 62% of millennials being very satisfied with the experience. Overall, 41% of the overall sample was very satisfied with card-linked loyalty programs. This evidence highlights millennials as a key customer segment for card-linked rewards programs.
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Source: PYMNTS and Banyan
