BROOKFIELD, Wis.—Loyalty programs have never been more important to retailers than they are today, according to a recent Carat Insights Report from Fiserv that also shares strategies organizations can use to build relationships.
The report analyzed more than $3 trillion in payments data and a consumer survey of 2,200 Americans.
According to Fiserv, the study shows that merchants can build effective loyalty program by focusing on by being customer centric, social, and engaging.
Key findings:
- Customers who have $100,000+ income, post-graduate and bachelor’s degrees are the most likely to join loyalty programs
- 70% of retail customers still do not join loyalty programs; those who do join loyalty programs said quantity (54%) of quality (42%) of offers is their primary motivator
- Younger consumers (who prefer purchasing with debit) want loyalty programs that provide discounts; older consumers (who prefer paying with credit) prefer loyalty programs that reward increased spend
- 29% of consumers will join a loyalty program for members-only access and benefits; 31% will join for exclusive social status opportunities
- Loyalty members are more likely to purchase from a brand than non-members. In dining 84% of loyalty members purchased from that brand in the preceding three months
For more info: 3 ways merchants can build customer loyalty