Author: Mintel Group Ltd.
Last saved by: HTTP server

Retailer Loyalty Programs - US - April 2017

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

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.