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Get With the Program: Perspectives on Retail Loyalty-Program Participation and Perks

FMCG and Retail | 11-15-2016
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When it comes to shopping, choice is the operative word. Whether consumers shop at a specialty retailer or a mass merchandiser, on a computer or a mobile device, they have never had so many ways to please the palate, discover the deal or pay the piper. Differentiating your brand in such a crowded space is not only critical, but also more difficult than ever.

A retail loyalty program can be an effective way to create competitive advantage by reducing customers’ likelihood to switch stores. Indeed, more than seven in 10 loyalty-program participants in Nielsen’s Global Loyalty-Sentiment Survey (72%) somewhat or strongly agree that, all other factors equal, they will buy from a retailer with a loyalty program over one without. Loyalty programs can also help drive more frequent visits and heavier purchasing. Nearly three-quarters of global loyaltyprogram participants (74%) agree that loyalty programs make them more likely to continue doing business with a company, and two-thirds (67%) agree that they shop more frequently and spend more at retailers with loyalty programs.

Values for the Ages

Financial rewards are the most highly-valued loyalty-program benefits for members of all ages, but product discounts and cash back or rebates are rated higher by older respondents than by their younger counterparts. Younger loyalty-program participants value a few nonmonetary benefits more highly than their older counterparts, though the percentages who say these are among the top three benefits are rather low

millennials place higher value on nonmonetary rewards than boomers

Tagged:  SHOPPER  |  CONSUMER  |  CPG AND RETAIL  |  GLOBAL  |  GROCERY
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