Fast Facts | ShopTalk | Who’s cashing in on rewards programs?
Vantiv and Socratic Technologies conducted an online survey with 500 consumers to learn about their participation in loyalty/rewards programs.
Summary of findings:
- Reward membership has tremendous influence on where people shop; eat; and how they travel
- Consumers indicated that their membership also influences the frequency of store visits where they can use rewards as well as typical spend during each shopping trip
- Points accumulated for free merchandise or travel and automatic discounts at time of purchase are the top reasons for signing up for a rewards program
- Top complaints that rewards members have about the programs include: “Amount of spending required to reach a reward” ; “Points expire before they can be used”; and “Hard to use rewards because of the restrictions”
- 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
Source: Consumer Survey—Vantiv and Socratic Technologies (2016)
Appeal of free shipping - The appeal of free shipping as a reward benefit is significantly higher with Gen X’ers and Boomers compared to Millennials and Retirees
Too many to track - 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
Participation varies by Gender - 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. Women are more likely to enjoy exclusive member discounts and free items provided by loyalty programs compared to men.