Table of Contents
Scope and Themes
-
- What you need to know
- Definition
- Data sources
- Loyalty program membership data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
-
- The market
- Surge in loyalty membership, but slower growth in active participation
-
- Figure 1: Total U.S. loyalty program memberships and active memberships, 2006-12
- Specialty retailers took the lion’s share, followed by department and grocery stores
-
- Figure 2: U.S. retailer loyalty program membership, by segment, 2010 and 2012
- Market drivers
- Economic recovery, however sluggish, favors retailer loyalty programs
- Despite financial difficulties, youngest consumers continue to shop
- Rise in mobile internet access likely to help program engagement
- Growth in purchasing power, population and loyalty enrollment of minorities to benefit loyalty programs
- The consumer
- Loyalty program participation reflects where the consumer tends to shop
- Price-based factors drive consumer recommendation
- Loyalty program membership a catalyst to brand advocacy
- Two in five members have room for more program participations
- Easy reward redemption and point accumulation is important
- Privacy is an important strategic tool in a loyalty program
- Frustration with time required to earn rewards and the triviality of rewards offered creates barriers to engagement
- What we think
Issues and Insights
-
- The importance of relevant communications in loyalty engagement
- The issues
- The implications
- The privacy paradox in personalized loyalty programs
- The issues
- The implications
- Understanding the needs of Millennials should bring incremental values
- The issues
- The implications
Trend Applications
-
- Inspire Trend: Cam Cam
- Inspire Trend: Minimize Me
- Mintel Futures: Access Anything, Anywhere
U.S. Loyalty Program Memberships
-
- Key points
- Loyalty memberships are on the rise but showing slower rate in active engagements
-
- Figure 3: Total U.S. loyalty program memberships and active memberships, 2006-12
Market Drivers
-
- Key points
- Sluggish economic recovery favorable to retailer loyalty programs
-
- Figure 4: U.S. consumer sentiment and unemployment rate, January 2008-June 2013
- Youngest consumers shop in the face of economic woes
- Rise in mobile internet access to facilitate program engagement
- Minority’s spending power may lead to more active engagement in loyalty programs
-
- Figure 5: Population, by race/Hispanic origin, 2008-18
Retailer Loyalty Programs—by Retail Sector
-
- Key points
- Overview
-
- Figure 6: U.S. retailer loyalty program membership, by segment, 2010 and 2012
- Specialty retailer loyalty programs
-
- Figure 7: Total U.S. specialty retailer loyalty program membership, 2006-12
- Department store loyalty programs
-
- Figure 8: Total U.S. department store loyalty program membership, 2006-12
- Grocery store loyalty programs
-
- Figure 9: Total U.S. grocery store loyalty program membership, 2006-12
- Drug store loyalty programs
-
- Figure 10: Total U.S. drug store loyalty program membership, 2006-12
- Mass merchandiser and warehouse club loyalty program
-
- Figure 11: Total U.S. mass merchant loyalty program membership, 2008-12
- Restaurant loyalty programs
-
- Figure 12: Total U.S. restaurant loyalty program membership, 2006-12
- Fuel/c-store loyalty programs
-
- Figure 13: Total U.S. fuel/c-store loyalty program membership, 2006-12
Innovations and Innovators
-
- Key points
- Target REDcard: Straightforward savings with no points to convert to rewards
- Walgreens: Mobile engagement through an app
- Shopyourway.com: Partnering rewards program with major retailers
- Nordstrom: Attracting loyalty program members by decreasing spending requirements
- My Lowe’s: Sharing data with the customer to assist with projects
- Amazon Prime: Poised for future growth despite possible losses
- MyPanera: Learning customer preferences to personalize rewards
- Jamba Juice: Refillable gift cards with a fundraising tie-in
- Belly Bites: Loyalty programs for small-to-medium businesses
- Target’s Cartwheel: Loyalty engagement through social media
- Loyalty Cloud: providing small businesses with consumer spending information through credit cards
Marketing Strategies
-
- Key points
- Strategy: Simple ways to redeem rewards, earn points, and access to exclusive deals
- Starbucks offers members exclusive deals and ease of earning points via email
-
- Figure 14: My Starbucks Rewards email promotion, July 2013
- Walgreens offers cash and other “Just for You” rewards
- Speedway highlights fast track to redeeming points
- Strategy: Emphasis on better overall value for exclusive members
- Strategy: Offering rewards across noncompetitive channels
- Giant Food Stores rewards points on discount for gas price
-
- Figure 15: Giant Food Stores online ad, July 2013
- Kmart’s partners with Procter & Gamble in facilitating loyalty engagement
-
- Figure 16: Kmart online banner ad, July 2013
- Mail promotion on gas savings for Walmart Credit Card members
-
- Figure 17: Walmart Credit Card loyalty mailing promotion, May 2013
- Strategy: Awarding points just for interaction
-
- Figure 18: Gilt Insider promotional ad, July 2013
- Strategy: Offering rewards through sweepstakes
- Strategy: Rewards program as a single prong of overall retailer marketing appeal
- Walgreens embodies wellness program in its brand marketing campaign
-
- Figure 19: Walgreens television ad, “First timers,” January 2013
- Sports Authority’s loyalty program as a piece of the marketing appeal
-
- Figure 20: Sports Authority television ad, “Sports Authority’s The League: Baseball,” February 2013
- Strategy: Leveraging retention via new store credit card memberships
- Macy’s entices new credit card holders with 15% off discounts
-
- Figure 21: Macy’s Star Rewards online promotion, July 2013
- Toys “R” Us promotes credit card memberships through prequalification
-
- Figure 22: Toys “R” Us Credit Card acquisition mailing promotion, March 2013
- Retention on retail credit card loyalty programs soliciting through direct mail
-
- Figure 23: Retailer Loyalty retention mailing pieces sent, by month, January 2011-June 2013
- Strategy: Engaging members in multichannel communications
- Safeway’s customized approach to its mobile app provides digitized coupons and grocery list, as well as personalized deals
- Macy’s appeals to young age in mobile engagement
-
- Figure 24: Macy’s Star Rewards online ad, July 2013
- Strategy: Bucking trends and abandoning the loyalty program
-
- Figure 25: Jewel-Osco’s “Card Free Savings” mail promotion, June 2013
- Strategy: Offering all-inclusive offers through strategic partnerships
-
- Figure 26: A&P Rewards Online Mall, online ad, July 2013
Retailer Loyalty Program Participation
-
- Key points
- Supermarkets and drug stores most likely participated in loyalty programs
-
- Figure 27: Participation in and average number of memberships of retailer loyalty programs, June 2013
- Women most likely to participate in retailer loyalty programs
-
- Figure 28: Participation in and average number of memberships of retailer loyalty programs, by gender, June 2013
- Loyalty program enrollment tends to be inversely related to age
-
- Figure 29: Participation in and average number of memberships of retailer loyalty programs, by age, June 2013
- Memberships increase with income
-
- Figure 30: Participation in and average number of memberships of retailer loyalty programs, by household income, June 2013
Preferred Ways of Engaging with Loyalty Programs
-
- Key points
- Most members access via desktop/laptop, men favor smartphones
- Mobile apps and social media are on the rise
-
- Figure 31: Preferred ways of engaging with loyalty programs, by device and communication method, by gender, June 2013
- Younger groups prefer smartphone for text message and/or mobile app engagement
-
- Figure 32: Preferred ways of engaging with loyalty programs, by device and communication method, by age, June 2013
- Email preferred the most among affluent; lower income favor mail or phone calls
-
- Figure 33: Preferred ways of engaging with loyalty programs, by device and communication method, by household income, June 2013
Attitudes to Shopping and Factors Driving Recommending a Retailer to Others
-
- Key points
- Americans shop at their “favorite” stores with value in mind
-
- Figure 34: Attitudes toward shopping, February 2007-March 2013
- Strong partiality toward low prices and deals, the major loyalty contenders
-
- Figure 35: Influential factors in recommending a particular retailer to others, June 2013
- Membership of loyalty programs a catalyst to advocacy for retail brand
-
- Figure 36: Influential factors in recommending a particular retailer to others, by retailer loyalty program participation, June 2013
- Women more likely to advocate than men
-
- Figure 37: Influential factors in recommending a particular retailer to others, by gender, June 2013
- Millennials willing advocates, yet selective program participants
-
- Figure 38: Influential factors in recommending a particular retailer to others, by age, June 2013
Attitudes toward Retailer Loyalty Programs
-
- Key points
- Two-fifths of members have space for more loyalty program participation
-
- Figure 39: Attitudes toward retailer loyalty programs, June 2013
- Women eager retailer loyalty members; men lag slightly
-
- Figure 40: Attitudes toward retailer loyalty programs, gender, June 2013
- Younger loyalty members value personalized, targeted programs
-
- Figure 41: Attitudes toward retailer loyalty programs, by age, June 2013
- Loyalty program memberships for higher-income shoppers more likely found in frequently shopped stores
-
- Figure 42: Attitudes toward retailer loyalty programs, by household income, June 2013
Important Attributes in Loyalty Programs
-
- Key points
- Factors that drive satisfaction in a loyalty program
- Effortless reward redemption and point accumulation key in engaging consumers
- Soft benefits as supplements to hard benefits
- Privacy and ease of enrollment are key strategic tools in a loyalty program
-
- Figure 43: Important attributes in loyalty programs, by participants in retailer loyalty programs, June 2013
- Women show stronger aspiration toward loyalty program attributes
-
- Figure 44: Important attributes in loyalty programs, by gender, June 2013
- Older shoppers seek savings from loyalty programs; younger shoppers want exclusivity
-
- Figure 45: Important attributes in loyalty programs, by age, June 2013
- Perceived value in loyalty programs differ by communication methods used
-
- Figure 46: Important attributes in loyalty programs, by preferred communication methods, June 2013
Frustrations/Dissatisfaction with Loyalty Programs
-
- Key points
- Loyalty members’ frustrations in retailer programs
- Time required to yield valuable rewards and insignificant benefits creates barriers
- Expired rewards likely lead to dissatisfaction in a loyalty program
-
- Figure 47: Sports Authority, The League Rewards email loyalty statement, July 2013
- Loyalty programs require giving back control to customers
- Privacy, as a matter of trust, shapes brand engagement
- Program engagement via phone calls welcomed
-
- Figure 48: Frustrations or dissatisfaction with loyalty programs, June 2013
- Both genders want faster, better rewards
-
- Figure 49: Frustrations or dissatisfaction with loyalty programs, by gender, June 2013
- Marketing to Millennials requires personalized, targeted engagement
-
- Figure 50: Frustrations or dissatisfaction with loyalty programs, by age, June 2013
Impact of Race and Hispanic Origin
-
- Key points
- Differing utilization of programs necessitates targeted, multicultural messaging
-
- Figure 51: Participation in and average number of memberships of retailer loyalty programs, by race/Hispanic origin, June 2013
- Blacks receptive to phone calls and mail engagement; Hispanics prefer contact via smartphone
-
- Figure 52: Preferred ways of engaging with loyalty programs, by device and communication method, by race/Hispanic origin, June 2013
- Hispanics likely to spend extra dollar in an exchange of rewards/points
-
- Figure 53: Attitudes toward retailer loyalty programs, by race/Hispanic origin, June 2013
- Hispanics “very likely” to advocate for a retailer with a “good” loyalty program
-
- Figure 54: Influential factors in recommending a particular retailer to others (very likely), by age, June 2013
- Blacks relatively unconcerned with monetary rewards; Asians and Hispanics look for exclusivity
-
- Figure 55: Important attributes in loyalty programs, by race/Hispanic origin, June 2013
- Longer time to build valuable rewards most cited dissatisfaction, regardless of race
-
- Figure 56: Frustrations or dissatisfaction with loyalty programs, by race/Hispanic origin, June 2013
Appendix – Other Useful Consumer Tables
-
- Market drivers
-
- Figure 57: Share of average annual expenditures to average annual income (before taxes), by all consumer units and consumer unit age groups, 2006-11
- Retailer loyalty program participation
-
- Figure 58: Participation in retailer loyalty programs, by attitudes toward retailer loyalty programs, June 2013
-
- Figure 59: Participation in retailer loyalty programs, by attitudes toward retailer loyalty programs, June 2013 (continued)
-
- Figure 60: Participation in retailer loyalty programs, by repertoire of preferred communication devices, June 2013
-
- Figure 61: Participation in retailer loyalty programs, by repertoire of preferred communication methods, June 2013
-
- Figure 62: Participation in retailer loyalty programs, by number of types of loyalty programs enrolled in, June 2013
-
- Figure 63: Average of total number of retailer loyalty programs participations, by attitudes toward retailer loyalty programs, June 2013
-
- Figure 64: Average of total number of retailer loyalty programs participations, by attitudes toward retailer loyalty programs, June 2013 (continued)
- Attitudes toward retailer loyalty programs
-
- Figure 65: Attitudes toward retailer loyalty programs, by repertoire of preferred communication devices, June 2013
-
- Figure 66: Attitudes toward retailer loyalty programs, by repertoire of preferred communication methods, June 2013
-
- Figure 67: Attitudes toward retailer loyalty programs, by number of types of loyalty programs enrolled in, June 2013
- Preferred ways of engaging with loyalty programs
-
- Figure 68: Preferred ways of engaging with loyalty programs, by device and communication method, by parents with children and age, June 2013
-
- Figure 69: Preferred ways of engaging with loyalty programs, by device, by attitudes toward retailer loyalty programs, June 2013
-
- Figure 70: Preferred ways of engaging with loyalty programs, by device, by attitudes toward retailer loyalty programs, June 2013 (continued)
-
- Figure 71: Preferred ways of engaging with loyalty programs, by device, by repertoire of preferred communication methods, June 2013
-
- Figure 72: Preferred ways of engaging with loyalty programs, by device, by total loyalty program, June 2013
-
- Figure 73: Preferred ways of engaging with loyalty programs, by communication method, by attitudes toward retailer loyalty programs, June 2013
-
- Figure 74: Preferred ways of engaging with loyalty programs, by communication method, by attitudes toward retailer loyalty programs, June 2013 (continued)
-
- Figure 75: Preferred ways of engaging with loyalty programs, by communication method, by repertoire of preferred communication devices, June 2013
-
- Figure 76: Preferred ways of engaging with loyalty programs, by communication method, by repertoire of preferred communication methods, June 2013
-
- Figure 77: Preferred ways of engaging with loyalty programs, by communication method, by number of types of loyalty program enrolled in, June 2013
- Important attributes in loyalty programs
-
- Figure 78: Important attributes in loyalty programs, by parents with children and age, June 2013
-
- Figure 79: Important attributes in loyalty programs, by retailer loyalty programs participations, June 2013
-
- Figure 80: Important attributes in loyalty programs, by retailer loyalty programs participations, June 2013 (continued)
-
- Figure 81: Important attributes in loyalty programs, by attitudes toward retailer loyalty programs, June 2013
-
- Figure 82: Important attributes in loyalty programs, by attitudes toward retailer loyalty programs, June 2013 (continued)
-
- Figure 83: Important attributes in loyalty programs, by repertoire of preferred communication devices, June 2013
-
- Figure 84: Important attributes in loyalty programs, by repertoire of preferred communication methods, June 2013
-
- Figure 85: Important attributes in loyalty programs, by number of types of loyalty program enrolled in, June 2013
-
- Figure 86: Important attributes in loyalty programs, by preferred devices for engaging with loyalty programs, June 2013
-
- Figure 87: Important attributes in loyalty programs, by preferred communication for engaging with loyalty programs, June 2013
-
- Figure 88: Important attributes in loyalty programs, by preferred communication for engaging with loyalty programs, June 2013 (continued)
- Frustrations or dissatisfaction with loyalty programs
-
- Figure 89: Frustrations or dissatisfaction with loyalty programs, by parents with children and age, June 2013
-
- Figure 90: Frustrations or dissatisfaction with loyalty programs, by participation in retailer loyalty programs, June 2013
-
- Figure 91: Frustrations or dissatisfaction with loyalty programs, by participation in retailer loyalty programs, June 2013 (continued)
-
- Figure 92: Frustrations or dissatisfaction with loyalty programs, by attitudes toward retailer loyalty programs, June 2013
-
- Figure 93: Frustrations or dissatisfaction with loyalty programs, by attitudes toward retailer loyalty programs, June 2013 (c
-
- Figure 94: Frustrations or dissatisfaction with loyalty programs, by repertoire of preferred communication devices, June 2013
-
- Figure 95: Frustrations or dissatisfaction with loyalty programs, by repertoire of preferred communication methods, June 2013
-
- Figure 96: Frustrations or dissatisfaction with loyalty programs, by total loyalty program, June 2013
-
- Figure 97: Frustrations or dissatisfaction with loyalty programs, by important attributes in loyalty programs, June 2013
-
- Figure 98: Frustrations or dissatisfaction with loyalty programs, by important attributes in loyalty programs, June 2013 (continued)
-
- Figure 99: Frustrations or dissatisfaction with loyalty programs, by preferred communication devices, June 2013
-
- Figure 100: Frustrations or dissatisfaction with loyalty programs, by preferred communication methods, June 2013
-
- Figure 101: Frustrations or dissatisfaction with loyalty programs, by Preferred communication methods, June 2013 (continued)
Appendix – Trade Associations
Back to top