Table of Contents
Overview
-
- What you need to know
- Definition
Executive Summary
-
- The issues
- Roadblocks to active participation
-
- Figure 1: Frustrations with loyalty programs, February 2017
- Drug stores, supermarkets garner the most participation
-
- Figure 2: Loyalty participation, february 2017
- The opportunities
- Retailers can reap their own rewards
-
- Figure 3: Impact on shopping, February 2017
- Find new ways to reward
-
- Figure 4: Desired loyalty program features, February 2017
- Generate new product trial through loyalty programs
- What it means
The Market – What You Need to Know
-
- Consumers are still shopping, but in different ways
- Smaller households changes shopping habits
- Online shopping changes expectations
Market Factors
-
- Lifestyle changes have an impact on shopping
- Households look different, continue to evolve
-
- Figure 5: Households, by type, 2016
-
- Figure 6: Households by number of members, 2016
- Figure 7: Median household income, by type of household, 2015
- The impact of online shopping
Key Players – What You Need to Know
-
- Top channels serve many shopping needs
- Amazon peaks consumer interest
- Specialty retailers’ programs struggle
- Alternative ways to reward
What’s Working?
-
- Participation is high overall, Amazon and drug stores lead
-
- Figure 8: Loyalty engagement, February 2017
- Loyalty programs have positive impacts on shopping
-
- Figure 9: Loyalty usage, February 2017
What’s Struggling?
-
- Participation is inconsistent across retail channels
- Specialty retailers struggle with lack of consumer awareness
-
- Figure 10: Sephora loyalty email message, march 2017
- Time, money, and relevance are roadblocks
-
- Figure 11: Loyalty program frustrations, February 2017
- Account management is a problem
What’s Next?
-
- Digital integration is next
- Alternative ways to reward
The Consumer – What You Need to Know
-
- Participation is high, but consumers play favorites
- Specialized retailers loyalty programs lack awareness
- Consumers want to use rewards, but time is working against them
- Loyalty programs can actually deliver loyalty
Loyalty Program Participation
-
- Participation is high, but inconsistent
-
- Figure 12: Loyalty Program Participation. February 2017
- Drug stores and Amazon are winning in loyalty participation
-
- Figure 13: Loyalty program participation repertoire by select loyalty program participation, February 2017
- Retailers can look to increase participation
-
- Figure 14: Loyalty program participation repertoire by gender, by age, February 2017
- Other characteristics influence participation
-
- Figure 15: Loyalty program participation by age and household income, February 2017
Loyalty Engagement
-
- Amazon is Prime
-
- Figure 16: Loyalty program engagement, by age, February 2017
- Best Buy and drug stores are among highest in participation
-
- Figure 17: Loyalty program engagement, February 2017
- Most specialized retailers have lowest levels of engagement
-
- Figure 18: Nordstrom email campaign, march 2017
- Figure 19: Loyalty engagement, February 2017
- Opportunities to engage with younger consumers
-
- Figure 20: Loyalty engagement, by age, February 2017
Loyalty Program Usage
-
- Clear preferences of how to use rewards
-
- Figure 21: Loyalty program usage, part 1, February 2017
-
- Figure 22: Loyalty program usage, part 2, February 2017
- Hispanics seek value out of loyalty programs
-
- Figure 23: Loyalty program usage, by Hispanic origin, February 2017
- Most consumers use their rewards and do so quickly
-
- Figure 24: Loyalty program usage, by age, February 2017
- Customers like to treat themselves and receive discounts
-
- Figure 25: Loyalty program usage, by age, February 2017
- Missed opportunities
-
- Figure 26: Loyalty program participation repertoire by loyalty program usage, February 2017
Desired Loyalty Program Features
-
- Consumers prefer simplicity over exclusivity
-
- Figure 27: Desired features that would encourage more participation in a loyalty program, February 2017
- Age influences top desired features
-
- Figure 28: Desired loyalty program features, by gender and age, February 2017
- Exclusivity has become less important, but some seek for personalization
- Digital features shouldn’t be ignored
-
- Figure 29: Desired loyalty program features, by millennials vs. non millennials, February 2017
Frustrations with Loyalty Programs
-
- Membership fees biggest deterrent to participation
-
- Figure 30: Frustrations with loyalty programs, February 2017
- Time is an issue
-
- Figure 31: Frustrations of loyalty programs, by age and household income, February 2017
- Many consumers feel rewards aren’t relevant to them
-
- Figure 32: Frustrations with loyalty programs, by age and household income, February 2017
- In-store opportunities
Impact on Shopping
-
- Successful programs deliver customer loyalty
-
- Figure 33: Impact on shopping, February 2017
- Consumers return the favor
-
- Figure 34: Impact on shopping, by Hispanic origin, February 2017
- Consumers take advantage of loyalty program deals
-
- Figure 35: Impact on shopping, by age and household income, February 2017
- More ways to manage
-
- Figure 36: Impact on shopping, gender and age, February 2017
Appendix – Data Sources and Abbreviations
-
- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – Market
-
-
- Figure 37: Households, by presence of own children, 2006-16
- Figure 38: Number of households, by age of householder, 2006 and 2016
-
- Figure 39: Median household income, by type of household, 2015
-
Back to top