Consumer Buying Behavior Statistics

Interested in what drives shopping behavior? Statistics at your fingertips.

Understanding the consumer purchase behavior is the heart of payments. Vantiv and Socratic Technologies team up every month to learn what shoppers are thinking about and how that affects their purchasing behavior. Below is a full compilation of these fast facts to help you also understand the heart of the consumer.

Interested in knowing more about how to interpret these findings? Check out our ShopTalk series.

 

Banking

  • On average, consumers have been with their primary service provider for 7.5 years. 73% are highly satisfied and 70% are highly likely to recommend their primary financial institution (FI) to others (March, 2017)
  • Nearly half (48%) of consumers have a credit card and 26% have a mortgage or home loan from their primary financial institution (March, 2017)
  • 15% of consumers have an auto loan and only 9% have a business account, such as business checking, loan or line of credit, from their primary financial institution (March, 2017)
  • Only 15% of consumers are highly likely to open a new checking account in the next 12 months, however, 15% of Millennials indicated they are extremely like to do so (March, 2017)
  • Only 15% of consumers are highly likely to open a new checking account in the next 12 months, however, 15% of Millennials indicated they are extremely like to do so (March, 2017)
  • When asked about the most important feature when looking to switch primary FI's, Free Service with Minimum Balance is nearly twice as important as the next feature selected, Conveniently Located Bank Branches (March, 2017)
  • 28% of Millennials bank with Bank of America and 20% with Chase. Both banks are technology leaders in the banking industry and offer millennials a variety of banking services and applications. (March, 2017)
  • 22% of Boomers and 15% of Retirees indicated that their primary FI is a credit union. 15% of Retirees bank with a local or regional bank. (March, 2017)
  • Retirees (14%) are the least likely to have a mortgage or home loan compared to other generations. (March, 2017)
  • Millennials (21%) are more likely to have auto loans compared to Boomers(12%) and Retirees (8%). Millennials (21%) are also more likely to have business accounts compared to other generations (March, 2017)
  • While locations of bank branches (45%) and ATM's (41%) are important reasons for Millennials when selecting their FI, other features carry significant importance for Millennials compared to older generations: Mobile banking app (31% vs. 12%), Debit card rewards (24% vs 8%) (March, 2017)
  • Most preferred banking methods are visiting the branch (37%) and using a bank’s website (36%) (December, 2015)
  • Banks’ websites are used nearly equally across all generations, however, Retirees (49%) and Baby Boomers (40%) most prefer visiting a bank branch (December, 2015)
  • Millennials (21%) have the highest preference for a bank’s mobile app (December, 2015)
  • Less than half of millennials have faith in their bank’s ability to provide investment advice or believe their bank has tools to help them reach their financial goals (December, 2015)
  • Online banking is the most recent activity with 80% of consumers using a bank’s website for online banking and 61% for online bill pay in the last month (December, 2015)
  • Overall, 31% of banked consumers have used Remote Deposit Capture and 48% have used a bank’s mobile app (December, 2015)
  • Capital One 360 is the most familiar Alternative Financial Services provider with more than one-third of consumers being at least somewhat familiar with the service (December, 2015)
  • 57% of Millennials have used Remote Deposit Capture compared to 23% of Boomers. Millennials are twice as likely (76%) to use a mobile banking app compared to Boomers (38%) (December, 2015)
  • While retirees are least likely to seek investment advice from their bank, they are the most loyal and least likely to switch. Millennials, on the other hand, are the most likely group to switch for convenience because they believe all banks are the same. Gen Xers are the most skeptical. 37% no longer trust their banks due to the banking crisis (December, 2015)
  • While retirees are least likely to seek investment advice from their bank, they are the most loyal and least likely to switch. Millennials, on the other hand, are the most likely group to switch for convenience because they believe all banks are the same. Gen Xers are the most skeptical. 37% no longer trust their banks due to the banking crisis (December, 2015)
  • 68% of banked consumers said they MUST have a local branch nearby before they will select a bank to do business with. Location is less important for Millennials (55%) (December, 2015)

Credit Card Usage

  • Credit cards that offer cash back are the most frequently used type of card. 59% of consumers use that type of card at least once a month, compared to 41% who use one that offers points. 38% of Millennials frequently use a card that provides balance transfer capabilities (April, 2016)
  • 80% of consumers receive an average of two new credit card solicitations per month. (April, 2016)
  • Consumers rated “Security/fraud protection benefits” and “Low/no annual fee” as the two most important features in explaining why they use a particular credit card most often. (April, 2016)
  • The ability to turn credit cards on/off in real time is the security feature valued most, especially among Millennials and Gen Xers (April, 2016)
  • Millennials value security features they can control, While 48% of credit card users value cards that they can turn on/off in real time, 61% of Millennials value such a feature. They also value other controllable security features such as “setting spend thresholds” (51%) and “controlling purchase by retailer type” (49%), significantly higher than other age groups. These features are also valued more by men compared to women (April, 2016)
  • Consumers redeem rewards in a variety of ways. 55% redeem rewards from a specific retailer. Airline rewards and hotel rewards are redeemed by 36% and 27% of consumers respectively. Millennials are more likely than other age groups to redeem rewards for restaurants, entertainment, car rentals and charitable donations (April, 2016)
  • 62% of millennials see an average of two credit card ads online per month compared to 54% of the general population (April, 2016)
  • Cash back benefits, points and low interest rates round out the other top reasons consumers use a particular credit card most often (April, 2016)
  • Offering no annual fee is by far the top feature when signing up for a new credit card. No annual fee is three times more important compared to a card with rewards/points and 50% more important than a card offering better security and fraud protection features (April, 2016)
  • According to consumers, fraud protection is ranked equally as important as no/low annual fees for the reason why they use a card most often. Both index 60% higher than rewards/points or low card interest as the main reason. (April, 2016)

Credit Scores

  • 79% of consumers know their credit scores and 89% believe they know what affects their scores including: Payment history (79%); Public records (44); and Amount owed (42%) (August, 2015)
  • Credit Karma, credit card statements, and credit card websites are equally used by 21% of consumers to check their credit scores (August, 2015)
  • More than one-third (36%) also believe that credit bureaus are slightly above the IRS on their list of most hated groups (August, 2015)
  • More than one-third (38%) of consumers have had an error on a credit report (August, 2015)
  • While consumers may have a jaded perspective of credit bureaus, nearly half (48%) believe that the credit bureaus provide them with valuable information to prevent identity theft and 37% say the service provides more benefits than drawbacks (August, 2015)
  • More 25-34 year olds (91%) know their credit scores compared to consumers over age 44 (78%) (August, 2015)
  • More than two-thirds of consumers believe that credit bureaus are critical in helping them obtain credit (69%) and more than half (56%) say it’s a good indicator of how well you have managed your finances (August, 2015)
  • Only a small percentage (8%) of consumers use the traditional credit bureaus such as Experian to check their credit scores. Even fewer (6%) use their bank’s web site (August, 2015)
  • Of those consumers who reported having an error in their credit score, 36% said the error was difficult to fix and 29% were unable to resolve the error (August, 2015)

Coupons and Digital Assistants

  • Redeeming offers received in the mail is the most common redemption method used by consumers (72%) followed by redemption of email offers (64%) (September, 2016)
  • 14% of consumers share promotions with others at least once a week and an additional 25% every 2-3 weeks. 26% of consumers have never shared promotions or coupons with others (September, 2016)
  • Offers received through the mail garner the most future interest across all generations (71%); however, Millennials and Gen Xers express a high degree of interest in newer methods such as QR codes and mobile wallets (September, 2016)
  • 59% of consumers share promotions verbally and 57% by sharing paper coupons with others. 43% of Millennials and Gen Xer’s are much more likely than Boomers (12%) or Retirees (3%) to share promotions through Facebook. Millennials are most likely compared to other generations to share promotions through email (September, 2016)
  • If given a choice of one way to redeem loyalty points, rewards and offers, 22% of consumers would choose coupons/cards received in the mail followed by having offers attached to their account appear at checkout (20%) (September, 2016)
  • 36% of consumers have used Apple’s Siri digital assistant and 22% Cortana from Microsoft (September, 2016)
  • 22% of all consumers most prefer mailed coupons while only 6% of Millennials most prefer this method. 26% of Millennials and 21% of Gen Xers most prefer redemption options that are attached to their account and appear at checkout. Only 16% of Boomers most prefer this method. 24% of Millennials and 18% of Gen Xers most prefer scanning a QR code from their mobile phone compared to 5% of Boomers. (September, 2016)

Data Breach

  • Nearly half (45%) of consumers are aware of recent merchant data breaches within the past six months. Mass merchants were identified by 51% of aware consumers as the main source of merchant data breaches (June, 2017)
  • Nearly one-third (29%) of consumers think it is likely their card information will be stolen as a result of a data breach within the next 2 to 3 years (June, 2017)
  • While most consumers (75%) feel the responsibility of a data breach lies with the credit card issuer, more consumers have placed the responsibility of fraud protection on the merchant compared to 2 years ago (64% vs. 44%) (June, 2017)
  • Boomers (46%) and Retirees (47%) are more likely to notify a credit reporting bureau after their card has been part of a data breach compared to Millennials (38%) and Gen Xers (31%) (June, 2017)
  • 24% of consumers surveyed have been the victim of a data breach at a retailer or restaurant where they have shopped or dined (June, 2017)
  • The most common follow-up actions after a consumer has experienced a data breach are to contact the card issuer to cancel or replace the card (69%) and to change passwords for all online sites where the card is stored (60%) (June, 2017) (June, 2017)
  • Substantially more consumers (63% vs 37%) review their credit history, using services such as Experian, compared to two years ago (June, 2017)
  • 22% of consumers who were victims of a data breach reported that the retailer or restaurant that was breached did nothing to notify them of the breach: 39% of sent a letter, 37% offered credit and ID Theft monitoring, 31% sent an email notification (June, 2017)
  • Women are more proactive in contacting the card issuer and changing passwords in response to being victims of a data breach In addition, women have higher expectations of merchants to take action to notify them about a data breach (June, 2017)

Digital Natives

Two questions asked of 1,001 Digital Natives (<35 years old and raised with the Internet). A new kind of shopper, they see a future where companies leverage technology to create more convenient, efficient, less expensive shopping experiences—fast. They’re driven by their smartphones too. (June, 2015)

  • Cut down on comparison time. They want apps/sites that allow them to instantly identify items, read reviews, compare similar items at different price points, available and the best price.
  • Expect mobile compatible websites. They just don’t see mobile experiences as anything like their online, desktop experiences—and they want them to be the same.
  • Expedite the checkout process. Help them bust lines, scan while shopping and pay with their phones. They want to reduce time spent in line, at register.
  • Mobile needs an upgrade: Shopping or banking, the mobile experience needs to feel like the real-world experience.
  • Coupons + phones: Incentivize them to save, even as they walk into your store with a smartphone. Reward them with savings.
  • Tailor product information to their needs. They want personalization, via avatars etc.) that let interact with product for size, fit. They want to engage with product literally.
  • Push applicable discounts. Geolocation and pushing digital coupons to their phones is big. They’re incented to spend when they’re made offers. They also want easier in-store acceptance of digital coupons.
  • Offer special delivery. They already envision drones and teleportation. They want sameday, free/less expensive shipping that makes online as desirable as in-store.
  • Get on shipping: They’re already thinking about drones and teleportation. Define the new edge of same-day, inexpensive shipping to stimulate online purchase.
  • Tap-and-go: Be their line-buster. No long checkout process. For them, mobile payments and options are very real, now.

EMV

  • 61% of consumers believe that any extra time needed to process an EMV card is worth the added security (March, 2016)
  • 76% of respondents believe that EMV cards are more secure and 46% believe they are more convenient compared to traditional credit and debit cards (March, 2016)
  • Confusion still exists with consumers using EMV cards. 57% can’t tell which terminals accept EMV cards and 52% are confused because the process varies from place to place (March, 2016)
  • While the majority of consumers believe that the extra time is worth the wait (61%), they also experience frustration with untrained cashiers (39%) and the process that varies from retailer to retailer (52%). Overall, 59% have had a mostly positive experience (March, 2016)
  • Only 38% of consumers have heard of the term EMV. They are more familiar with “embedded chip” terminology (July, 2015)
  • Only 29% are currently equipped to process EMV payments, however 60% of SMB merchants will be ready by the end of 2015 (July, 2015)
  • Few SMBs have experienced cyber attacks (13%) or data breaches (11%) and only 21% have had more than 10 chargebacks in the last 12 months (July, 2015)
  • The gap between EMV credit and debit card widens. As of March 2016, 66% of consumers have an EMV credit card, however, only 36% have an EMV debit card (March, 2016)
  • Grocery stores (84%) and Pharmacy/Drug stores (53%) are the retail locations where chipenabled EMV cards are most frequently used (March, 2016)
  • 40% of consumers would recommend EMV cards to others (March, 2016)
  • Millennials and GenXers are more likely to prefer retailers that accept EMV cards compared to other generations (40% vs. 23%). They are also more likely to recommend chip-enabled cards to others compared to older consumers (50% vs. 34%) (March, 2016)
  • 83% are aware of the mandate to upgrade in 2015 but only 61% know about the liability shift (July, 2015)
  • One-third plan to upgrade with their current POS provider, but 46% will shop around (July, 2015)
  • A minority of SMBs (38%) believe they are knowledgeable about card data security (July, 2015)

Fraud

  • Consumers feel that they are equally responsible for protecting themselves against credit and debit card fraud as are the card companies (70% and 72% respectively). Nearly half (48%) of consumers have experienced some form of card fraud. (January, 2016)
  • While 65% of consumers have at least one chip-enabled credit card, only 34% possess a debit card that is chip-enabled. (January, 2016)
  • Traditional cards are viewed as least secure by nearly two-thirds of consumers. 26% of consumers believe that payments using mobile wallets are the least secure which doesn’t bode well for ApplePay or other mobile payment forms. (January, 2016)
  • Top 5 ways consumers protect themselves from in-store fraud: review card statements (68%), shred mail containing card or personal info (62%), pay bills online to avoid paper statements (37%), regularly review credit history/score (37%), notify card issuer when traveling (31%) (January, 2016)
  • 70% of consumers (and 83% of GenXers) shop online at least once a month. As brick and mortar retailers upgrade their systems to accept chip-enabled cards, online retailers are expected to see an increase in fraudulent purchases. (January, 2016)
  • When asked which forms of payment are Most and Least secure, more consumers rated chip-enabled cards (56%) as the most secure payment form followed by digital payments (think PayPal) with 30%. (January, 2016)
  • Top 5 ways consumers protect themselves from online fraud: keep software up to date (60%), use SSL sites (53%), use PayPal (44%), don't store card info on sites (43%), personal firewall (36%) (January, 2016)

Geolocation

  • Using a mobile phone to save money while shopping is becoming widely used. 47% of consumers use a phone to redeem coupons or get discounts while shopping in-store while 46% use their phone while in-store to compare prices (July, 2016)
  • 50% of consumers believe that retailers using Geolocation to offer promotions is OK as long as they can opt in/out. 25%, however, believe that is would never be acceptable for them. Only 22% of consumers have experienced Geolocation based offers or discounts for a retailer and 32% have never even heard of this capability (July, 2016)
  • 31% of consumers have experienced seamless rewards automatically applied to their purchase based on their account information (July, 2016)
  • Millennials are significantly more interested compared to other generations in geolocationbased offers featuring events such as concerts and festivals (July, 2016)
  • While a minority of consumers buy online and then either pick up or return to a store, these activities are expected to grow to the majority. Nearly 40% of consumers indicated they are likely to adopt this behavior if available from more retailers (July, 2016)
  • While 40% of consumers have bought online and picked up an item in-store, an additional 39% indicated they would likely do this activity in the future (July, 2016)
  • Geolocation-based offers from Grocers (50%), National restaurants (47%) and National retailers (46%) garner the highest level of interest from consumers (July, 2016)
  • 72% of Millennials are OK with retailers’ Geolocation based offers and 40% of them have used these offers and discounts compared to 26% of Gen Xers, 6% of Boomers (July, 2016)
  • Only one-third of Gen Xers and less than one-quarter of Boomers have had experience with seamless rewards (July, 2016)

Gift Cards

  • 41% of respondents most prefer to receive restaurant gift cards followed by those from Big Box retailers (13%) (March, 2016)
  • Gift card malls (36%) and directly from the retailer in-store (31%) are the most preferred places to purchase gift cards (March, 2016)
  • If not visible on the counter, 65% of respondents would ask a retailer if they offered gift cards (March, 2016)
  • 34% of respondents indicated that buying gift cards online was their preferred purchase method. According to GiftCard.com, online gift card sales are growing 29% per year compared to 6% for traditional gift cards. (March, 2016)
  • While only 42% of respondents have stored a gift card on a mobile phone, 73% indicated they are likely to do so in the future. Those who aren’t likely are mostly concerned about redemption issues at the retail location. (March, 2016)
  • Christmas and Birthdays are the most popular occasion to give or receive gift cards (96%) followed by Graduations and Weddings (47%) (March, 2016)
  • Carriers are not an important consideration when purchasing a gift card (43% of respondents saying carriers are somewhat or very unimportant) (March, 2016)
  • Card Design and offering Occasion Specific cards are not top considerations, but they are somewhat important to nearly half of the respondents (March, 2016)
  • 65% of respondents indicated they have purchased an e-Gift (digital) card for someone. Millennials are even more interested in digital gift cards with 84% agreeing that they will probably purchase one during the 2015 holiday season according to a study conducted by InComm. Instant delivery is the main reason cited by 61% of e-gift card purchasers. (March, 2016)

Mobile Payments

  • 30% of consumers have used mobile wallet payments within the past 3 months (February, 2017)
  • Apple Pay (37%) is the most frequently used mobile payment option followed by the mobile Starbucks app (29%) (February, 2017)
  • Online stores (62%) and Coffee shops (53%) are the most frequently used mobile apps for in-app purchases (February, 2017)
  • Consumers frequently use their mobile phone to use coupons (49%) and compare prices while in store (45%) (February, 2017)
  • Coffee Shops are the #1 location for mobile payments (February, 2017)
  • In addition to purchases, Millennials rely on their mobile phones to make their shopping experience more convenient overall. They are the most likely to use their mobile phones while on the go, even compared to Gen X’ers for: Buy online/Pick up in store (52% vs. 38%), Buy online/Return to store (44% vs 21%), Compare prices while in store (74% vs 56%), Compare reviews while in store (65% vs 49%) (February, 2017)
  • Older generations still prefer cash for everyday purchases while Millennials and Gen X’ers prefer to use plastic for purchases at Convenience Stores, Coffee Shops and Fast Food Restaurants (February, 2017)
  • 44% of respondents who have not made a purchase with a mobile phone at a retail location do not believe it provides any advantage over tradition payment methods. 21% don’t understand how it works and 21% don’t believe it is secure (December, 2016)
  • Credit cards are the most frequently used payment method in stores across all retailers, restaurants (including Fast Food and Casual Dining), and entertainment venues such as sporting events and movie theatres (December, 2016)
  • Cash is still king for payments at public transit (December, 2016)
  • 20% of consumers indicated a reason they don’t use mobile payments is because the retailers they shop at don’t accept it (December, 2016)
  • 21% of consumers most frequently use cash for coffee shop purchases and 13% most frequently use store gift cards (December, 2016)
  • 15% of consumers still use cash most frequently at casual restaurants (December, 2016)
  • Users are early adopters of technology and think about mobile payment’s benefits including: Speed and efficiency, Convenience and ease of use (simple checkout process), Hassle free (no heavy bags or cumbersome wallets) (May, 2016)
  • Non-Users’ biggest concern is security, especially women 25-34 yrs old. Specifically, they are concerned about: Losing their phone and compromising their financial information, Moments of vulnerability such as Wi-Fi, transmitting credit card info, etc., Store is hacked. (May, 2016)
  • Education is key for attracting Non-Users. Non-users mention a lack of understanding about how Mobile Payments work with some believing Mobile Payments means online shopping (especially women and those age 55+). Non-users are happy with the way they currently make purchases, so they don’t see any benefits to change. (May, 2016)
  • Retailers can take simple steps to improve the mobile payment experience. (May, 2016)
    • Make the process smooth by educating employees on how to help when glitches occur.
    • Provide a consistent experience.
    • Communicate when mobile payments will be available
    • Offer security support to aid customers who encounter security threats
  • It’s no surprise that Millennials (46%) and GenXers (41%) are the heaviest users of mobile payments and use it more frequently (February, 2016)
  • Mobile payment users wish they could use it at more locations (75%), but the availability of mobile payments has a relatively lower influence on store selection (February, 2016)
  • While the majority of users have had a positive experience using mobile payments (73%), many express frustration with cashiers (60%), terminals (65%) and the variation in the process by retailer (57%) (February, 2016)
  • Women are more likely to express some dissatisfaction with the mobile payments process compared to men. 66% of women believe the process is confusing because it changes from retailer to retailer, compared to 49% of men (February, 2016)
  • Among consumers who are not interested in mobile payments, 84% of women said because it is unsafe, compared to 61% of men (February, 2016)
  • Overall experience with mobile payments has been quite positive with 80% of users rating their experience as Excellent and Very Good. Only 22% reported having experienced difficulties (February, 2017)
  • Mobile phone purchases using a browser (41%) are more often used than mobile in-app purchases (31%) (February, 2017)
  • Nearly half of non-users think cards are easier to use for payments and four in ten don’t believe mobile wallets are safe (February, 2017)
  • Cash is still most preferred payment method for Transportation, Fast Food Restaurants, Coffee Shops and Convenient Stores (February, 2017)
  • Millennials show a significantly higher usage of mobile wallets (62%) compared to Gen X’ers (33%) and Baby Boomers (15%) (February, 2017)
  • While Millennials (44%) are most likely to use a mobile app to pay for Fast Food purchases, Baby Boomers (66%) are the most likely to make purchases in coffee shops using a mobile app compared to other generations (February, 2017)
  • 40% of participants have used a mobile phone to make a purchase while at a retail location. 58% prefer using a mobile wallet and 38% prefer in app payments specific to the retailer (December, 2016)
  • One in five respondents indicated that retailers they shop at don’t offer a mobile payment option (December, 2016)
  • Debit cards are the second most frequently used payment method but is closely followed by cash payments at coffee shops and fast food restaurants (December, 2016)
  • One in five consumers don’t understand how mobile payments work and don’t believe it to be secure (December, 2016)
  • 41% of consumers most frequently use cash for transit transactions (December, 2016)
  • One in four consumers most frequently use cash at fast food restaurants, most likely due to the small purchase amount (December, 2016)
  • Most people think mobile payments are in their infancy. (May, 2016)
  • Users feel annoyed and embarrassed when mobile payments don’t work. Other barriers and frustrations include: Tech glitches, Uninformed employees, Inconsistent availability, Security concerns (May, 2016)
  • Participants agreed that mobile payments will become widespread in the future— transforming the way people shop. (May, 2016)
  • Both Users and Non-Users are concerned about security, but different messages should be used for each audience. Security is less of an issue for users, but they still need to be reassured that mobile payments are safe. Non-users still need to be convinced that mobile payments are safe to help eliminate the lack of trust (May, 2016)
  • 28% of survey respondents have used a mobile device to pay at a retail location, with 12% of those using it to pay regularly (February, 2016)
  • Usage of mobile payments is consistent between Males (29%) and Females (28%) (February, 2016)
  • Three-quarters of mobile payment users believe it is faster than traditional cards and nearly two-thirds believe it is a safer way to pay (February, 2016)
  • 72% of respondents indicated they have NOT yet used a mobile device to pay at a retail location. Of those, 38% are not interested, primarily because they don’t think it is safe. 23% of respondents indicated they are interested, however, many are still trying to decide with device to select and others indicated they don’t know how mobile payments device to select and others indicated they don’t know how mobile payments work (February, 2016)
  • 73% of women agree that cashiers are unfamiliar with mobile payments, compared to 50% of men who agree (February, 2016)

Mobile Shopping

  • 43% of respondents have downloaded a mobile shopping app from a retailer or business (July, 2015)
  • Discount retailers (47%) and restaurants (46%) follow close behind
  • 43% of respondents have downloaded a mobile app to compare prices while shopping with the most popular apps being Shop Savvy, Price Grabber, Red Laser and Shop advisor (July, 2015)
  • PayPal is the most preferred in-app payment method with nearly two-thirds of consumers making purchases using PayPal (July, 2015)
  • Because consumers use a mobile app to compare prices while shopping, discount stores can take advantage of offering discounts and offers using a mobile app (July, 2015)
  • Ecommerce apps are leading the pack with 50% of consumers who have downloaded a mobile shopping app having done so from an e-tailer (July, 2015)
  • The average respondent has downloaded shopping apps from 4 types of retailers (July, 2015)
  • Most common use of shopping apps is to retrieve coupons or deals (55%), followed by making purchases (52%) and comparing prices (52%) (July, 2015)
  • 20% of consumers use ApplePay for in-app payments in its first year of availability (July, 2015)

Online Reviews

  • Over half (58%) of consumers read online reviews always or most of the time before purchasing a new product. Top product categories reviewed are; Electronics/Computers/Phones (70%); Home Appliances (57%); Restaurants (54%); and Cars/Trucks (50%) (April, 2017)
  • Slightly over half of consumers believe reading online reviews of products to be Extremely or Very important before purchasing a product (58%) or selecting a new service provider (59%) (April, 2017)
  • Overall ratings (66%), Ratio of positive to negative reviews (63%) and Detailed reviews (62%) are the most important review attributes (April, 2017)
  • Nearly a third (32%) of Millennials always read online reviews before purchasing a new product while 29% indicated they always read online reviews before choosing a new service provider, significantly higher than the other generations (April, 2017)
  • Millennials and GenXer’s look at a variety of review attributes in addition to overall rating/score, including: Number of reviews, Reviewer status, Recency of reviews, Amount of detail in the review, Number of other readers who rated the review “helpful” (April, 2017)
  • Just under half (49%) of consumers read online reviews before selecting a new service provider. Top service categories reviewed are: Consumer services (hair salon, spa, plumber, etc.) with 62% of consumer reading reviews before selecting a new service provider (April, 2017)
  • Consumers are most likely to read online reviews when purchasing big ticket items (71%) (April, 2017)
  • Online stores (including Amazon) are the most used source of online reviews (April, 2017)
  • About 70% of Millennials and nearly two-thirds of GenXers consider online reviews as Extremely or Very Important before making a purchase decision (April 2017)
  • 62% of women read online product reviews Always or Most of the Time compared to 53% of men, particularly for: Home appliances, Home furnishings, Clothing, Toys and Games (April, 2017)

Order Ahead

  • “Order ahead” is fairly well known. 83% of consumers have heard of this service (May, 2017)
  • Of those who have not yet tried “order ahead”, one-third are likely to use this service in the future (May, 2017)
  • Even among the consumers who are aware of “order ahead” but haven’t used it, nearly one-third (32%) believe it would have an impact on their restaurant selection (May, 2017)
  • An equal percentage of men and women have chosen a restaurant because of the availability of the “order ahead” option (May, 2017)
  • 61% of Millennials have used an “order ahead” app or service, more than any other generation. 44% of Gen X’ers and 23% of Boomers have used this service (May, 2017)
  • Over one-third (35%) of consumers have used an “order ahead” app or service. An additional 47% have heard of “order ahead”, but have not tried it (May, 2017)
  • Of those consumers who have used an “order ahead” service or app, two-thirds of users indicated they have chosen a restaurant because they offered “order ahead” (May, 2017)
  • Awareness and usage of “order ahead” service does not vary by gender
  • 93% of Millennials and 86% of Gen X’ers have heard of this service while just over twothirds (69%) of Retirees are aware of “order ahead” (May, 2017)
  • 79% or Millennials and 71% of Gen X’ers indicated they have chosen a restaurant because of the “order ahead” option (May, 2017)

Personalized Offers

  • One-third of consumers who are members of loyalty programs are Extremely or Very Interested in receiving recommendations or offers based on their past purchase history. (February, 2017)
  • Overall, 45% of consumers are interested in receiving offers and recommendations by email, however, interest in receiving communications from any channel decreases as age increases (February, 2017)
  • One in three consumers has had experience with recommendations or offers based on geolocation. This percentage jumps to 50% for Millennials. While overall interest is still low (23%), Millennials show a significantly higher level of interest (48%) (February, 2017)
  • Millennials’ shopping frequency is much more impacted by personalized recommendations and offers compared to other generations. 61% of Millennials, for example, increase their shopping at Discount Retailers based on personalized recommendations compared to 49% of Gen X’ers and 36% of Boomers (February, 2017)
  • While both men and women most prefer to receive offers and recommendations through email, men have a higher interest in offers using mobile wallets and a bank’s online website compared to women (February, 2017)
  • Consumers are most open to receiving purchase history recommendations from Grocery Stores (42%) and Drugstores (31%), which also have the highest percentage of consumers who are loyalty program members (February, 2017)
  • Recommendations and offers provided to consumers based on their previous purchase history have a positive impact on purchase frequency. The impact on increased shopping frequency varies from 28% (Drugstore) to 49% (Cosmetics retailers) depending on the type of retailer or restaurant (February, 2017)
  • Millennials show a significantly higher interest (55%) in receiving personalized recommendations and offers based on their purchase history. Retirees show the least interest with 57% being not very or not at all interested. (February, 2017)
  • Overall, women are more open to receiving recommendations and offers based on previous purchase history (February, 2017)
  • Men are also more interested in offers based on geolocation (27%) compared to women (19%) (February, 2017)

Rewards and loyalty programs

  • 92% of consumers belong to at least one loyalty rewards program and on average belong to 6.7 programs. Grocery stores (63%) and Drugstores (57%) top the list of most popular retailer loyalty rewards programs (February, 2017)
  • Consumers most dislike programs that: Require too much spending to reach the next level of status (45%); Rewards expire before they can be used (43%); and Rewards that are hard to use due to restrictions (34%) (February, 2017)
  • While Retirees belong to the fewest number of programs, 5.8 on average, they are more likely to be members of Travel programs (45%) compared to Millennials (25%) and Gen X’ers (28%). Retirees also rated Points for free merchandise or travel as one of the top reasons they join loyalty programs (51%) compared to 34% of Millennials and Gen X’ers (February, 2017)
  • Women belong to an average of 7.6 programs compared to 5.9 for men. Membership for women is significantly higher for: Grocery stores (73% vs. 54%), Drugstores (69% vs. 47%), Dept stores (43% vs. 29%), Fast casual (32% vs. 22%), Discount retailer (32% vs. 21%), Apparel (20% vs. 12%) (February, 2017)
  • Reward membership has tremendous influence on where people shop (66%); eat (56%); and how they travel (50%) (May, 2016)
  • Points accumulated for free merchandise or travel and automatic discounts at time of purchase are the top reasons (47% and 41% respectively) for signing up for a rewards program (May, 2016)
  • Nearly 60% of consumers belong to Grocery Store and Credit Card rewards program and use them at least once every three months. Gen Xers have the highest participation rates in Hotel rewards programs (39% compared to 28% of the general population) (May, 2016)
  • 29% of Millennials rated “too many programs to keep track of” as one of their top three things they dislike about rewards programs. Compared to 17% of Gen X’ers and 20% of Boomers (May, 2016)
  • Consumers have an average of 2.1 credit cards, 1.3 debit cards and 1.3 store affinity cards. Consumers have an average of 2.1 credit cards, 1.3 debit cards and 1.3 store affinity cards. These averages include consumers without cards (September, 2015)
  • Rewards programs drive payment behavior. 38% indicated the main reason they use their card over cash is because of the amount of cash they have on hand, but 25% use cards for the rewards program (September, 2015)
  • Customers who have several credit cards typically use the card that offers them the best rewards (42%) or convenience (15%) (September, 2015)
  • As the primary driver of payment preference, consumers will select to use debit and credit cards to receive rewards (September, 2015)
  • Only 22% of consumers have chip-enabled debit cards, however, debit is the most preferred payment method for every day purchases putting customers and merchants at risk (September, 2015)
  • Top reasons to join a loyalty rewards program are: Automatic discounts at time of purchase (46%); Free shipping (44%); Points for free travel or merchandise (39%); and Members only discounts (39%) (February, 2017)
  • One in four consumers belongs to a coalition loyalty program which allows them to earn and redeem rewards across a variety of retailers or restaurants. Similarly, 43% of consumers report they would shop more frequently with retailers or restaurants who are part of a coalition loyalty program (February, 2017)
  • Millennials have the lowest participation in Drugstore (45%) and Department Store (30%) loyalty programs compared to other generations and belong to the second lowest average number of programs at 6.2 (February, 2017)
  • Women rated benefits such as Automatic discounts at purchase (51%); Free shipping (50%); and Members only discounts (44%) significantly higher than men in reasons for joining loyalty programs (February, 2017)
  • Consumers indicated that their membership also influences the frequency of store visits where they can use rewards (65%) as well as typical spend during each shopping trip (53%) (May, 2016)
  • Top complaints that rewards members have about the programs include: “Amount of spending required to reach a reward” (43%); “Points expire before they can be used” (36%); and “Hard to use rewards because of the restrictions” (33%) (May, 2016)
  • The appeal of free shipping as a reward benefit is significantly higher with Gen X’ers (41%) and Boomers (44%) compared to Millennials (27%) and Retirees (22%) (May, 2016)
  • 29% of men have used an airline rewards programs in the last three months compared to 20% of women. 65% of women, however, have used a grocery store loyalty program in the last three months compared to 50% of men. (May, 2016)
  • Consumers WITH cards have an average of 2.7 credit cards, 1.5 debit cards and 2.4 store cards (September, 2015)
  • Rewards are even more influential for millennials. 38% of Millennials (ages 25-34) use cards instead of cash because of the rewards (September, 2015)
  • 63% of consumers with chip cards believe that it is important (extremely or somewhat) for the businesses that they shop at to accept chip enabled cards (September, 2015)
  • Customers carry a number of cards and the one chosen most often offers relevant customer rewards (September, 2015)
  • 27% of consumers who don’t currently have a chip card would open a new credit card to get a credit card that is chip-enabled (September, 2015)

Seamless Shopping Experience

  • Shopper’s overall satisfaction with their omnichannel shopping experience is moderate for even basic functions such as; Accuracy of prices online vs. in-store (59%); Ability to check inventory online and pick up in-store (58%); and Ability to return items to a store that were purchased online (58%) (November, 2015)
  • Nearly one-third (32%) of shoppers indicated that none of the retailers listed provided them with a seamless shopping experience (November, 2015)
  • Of the seven criteria rated by respondents, their satisfaction with sharing purchase decisions via social media through the retailer’s app or website was the lowest at 34%. However, Millennials are the most satisfied of any generation at 59%. (November, 2015)
  • The most common reasons why a mobile device is used to supplement an in-store experience are to retrieve coupons/deals (36%), check prices (33%), review loyalty points (18%), and make purchases (18%) (November, 2015)
  • When asked “Which retailer provided you with a seamless shopping experience”, 35% mentioned Walmart and 30% mentioned Target. Best Buy came in third (27%); Kohl’s fourth (21%) and Home Depot fifth (19%) (November, 2015)
  • Not surprising, Millennials and Gen Xers are more than twice as likely to retrieve coupons/deals using mobile devices while in a store and nearly twice as likely to compare prices while shopping compared to Baby Boomers (November, 2015)
  • Among the seven criteria rated by respondents, Millennials are the generation that’s least satisfied with the consistency between apps and online (desktop) experiences at 48% (November, 2015)
  • 54% of Millennials report using their mobile devices to retrieve coupons/deals, 48% to check prices, 43% to make purchases, and 40% to review loyalty points. (November, 2015)

Shopping

  • The heaviest shopped non-food product categories across generations (both in-store and online) are pharmacies (72%) and clothing/apparel (68%) with the majority of consumers shopping these categories in the last three months (May, 2017)
  • Millennials (54%) are most likely to have purchased electronics items compared to other generations (May, 2017)
  • On average, consumers purchase nearly two-thirds (65%) of their nonfood purchases instore and one-third online (May, 2017)
  • Over one-third of Millennials (34%) and Gen X’ers (36%) have purchased apparel online. 30% of Millennials and 34% of Gen X’ers have purchased Footwear online (May, 2017)
  • Purchase methods (in-store vs. online) among men and women are generally consistent (May, 2017)
  • More men have purchased electronics and sporting goods in the past 3 months (May, 2017)
  • Online retailers are the most prolific users of personalized shopping recommendations based on purchase history. 62% of consumers have observed online retailers using this functionality (August, 2016)
  • 38% of consumers reported that personal recommendations from Online Retailers and Grocery Stores would increase the frequency of their purchases, the highest percentage of all retail categories tested (August, 2016)
  • Across nearly all retail categories, Millennials indicated they are more aware of the personalization offered by retailers. They are also more satisfied with the recommendations and offers provided. (August, 2016)
  • While 57% of consumers believe that the majority of retailers will offer personalized recommendations in the future, the feelings are mixed. 53% are uncomfortable having companies track their purchase history while 51% believe it demonstrates that the company is interested in keeping their business (August, 2016)
  • More than half of the Gen X’ers (54%) and Boomers (55%) have purchased items from home improvement retailers in the last 3 months (May, 2017)
  • Most in-store purchases are made at large national or regional retailers, including purchases for home improvement items (85%); Electronics (82%); Clothing (81%); Footwear (80%); and Cosmetics (80%) (May, 2017)
  • While the majority of purchases are made in-store, electronics and sporting goods are the most likely products to be purchased online (May, 2017)
  • Millennials are more likely than other generations to prefer shopping at local or independent retailers, including: Pharmacy (34%), Footwear (31%), Clothing/Apparel (23%) Gen X’ers and Boomers preferences are significantly lower for these categories (May, 2017)
  • Men and women have similar retailer selection among categories (local vs. large) (May, 2017)
  • More women have purchased clothing, footwear, and cosmetics in the past 3 months (May, 2017)
  • Consumers are most satisfied with recommendations from Coffee Shops and National Restaurant chains (89% satisfaction rating) (August, 2016)
  • Half of the consumers indicated that receiving personalized recommendations based on their purchase history is acceptable as long as they have the option to opt in or out (August, 2016)
  • Millennials are significantly more influenced by personalization with 67% saying it positively influences their frequency of purchase with Online Retailers and 58% with Grocery Stores (August, 2016)
  • While 47% of consumers are Amazon Prime members, 71% of Millennials have joined the program. 86% of members believe it is a good value, while 98% of Millennials believe so (August, 2016)

Subscriptions

  • 79% of consumers subscribe to some form of product or service subscription, with Newspapers/Magazines being the most common subscription (41%) (January, 2017)
  • 37% of consumers subscribe to at least one product such as: Personal grooming (15%); Household items (13%); Personal health (12%) (January, 2017)
  • 35% of consumers have purchased a subscription as a gift. Most common gifted subscriptions are: Newspapers/magazines (12%); Clothing items (9%); Alcohol (8%); Food/Non-alcohol (7%) (January, 2017)
  • 54% of subscribers typically pay monthly and 52% pay using a credit card (January, 2017)
  • Millennials have an overall greater interest in subscribing to products or services in the future that they do not already subscribe to (January, 2017)
  • Most product and service subscribers intend to continue their subscriptions in 2017. Likelihood to continue range from 81% to 97% (January, 2017)
  • Overall, consumers who don’t currently subscribe to any products are unlikely to subscribe to future subscriptions (77% unlikely) (January, 2017)
  • 75% of consumers subscribe to at least one service such as: Online video (39%); Gym memberships (23%); Music services (21%) (January, 2017)
  • 1 in 5 Millennials and Gen Xer’s who have not given a subscription gift are likely to purchase a gift subscription in the future. Gift subscriptions are not something that Boomers or Retirees have accepted (January, 2017)
  • In additional to online video subscriptions which cross generations, Millennials also subscribe to Food items, Music services and Gym memberships. (January, 2017)
  • 61% of Millennials have given a gift subscription compared to 39% of Gen Xer’s, 22% of Boomers and 19% of Retirees. Popular subscription gifts include: Alcohol (21%), Clothing (19%), Food (19%) (January, 2017)
  • Service Subscription Market Leaders Include: Netflix is the most popular online video subscription (70%) across all generations, Spotify (26%) and Google Play Music (21%) are most popular with Millennials, Retirees (26%) and Boomers (18%) prefer SiriusXM (January, 2017)

Wearable Technology

  • Fitness trackers are the most popular wearable with 18% of consumers owning one and 22% of respondents indicating they are likely to buy one in the next six months. Fitbit is the most popular fitness tracker with nearly 2/3 of fitness track owners owning that brand (January, 2016)
  • Smartwatches are relatively new with consumers with average ownership at 4.7 months.
  • The majority of fitness track (92%) and smartwatch (88%) owners are quite satisfied with the devices (January, 2016)
  • Women are more likely than men to use trackers to monitor their sleep (49% vs. 19%) and remind them to get up and move (32% vs. 9%) (January, 2016)
  • Only 22% of smartwatch owners have used their smartwatch to make a purchase. The usage could be caused by the limited number of retailers accepting mobile payments and is expected to grow as retailer adoption of mobile payments increases (January, 2016)
  • 44% of fitness track owners have owned their device for more than a year. Average ownership is nearly 9 months (January, 2016)
  • Only 6% of consumers own one currently, however 17% of survey respondents indicated they are likely to buy one in the next six months (January, 2016)
  • Not surprising, 93% of fitness track owners use them to count steps/miles. Other popular uses are monitoring heart rate (32%) and monitoring sleep (31%). Only 18% share their progress with friends on social media (January, 2016)
  • 81% of smartwatch owners use their device to track their physical activity, even more than checking email (72%) or social media (34%) (January, 2016)
  • Men are more likely to purchase fitness trackers (27% vs. 17%) and smartwatches 921% vs. 12%) compared to women in the next six months (January, 2016)