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Consumer Insights: Grocery Rewards Programs

First Data Competitive Intelligence conducted a Consumer Loyalty Study in July 2008 focused on grocery rewards programs. This study resulted in several key findings including: grocery tops retail rewards memberships, immediate rewards and discounts most preferred, choice of store moderately influenced, and more.

First Data Competitive Intelligence conducted the Consumer Loyalty Study with over 1,000 U.S. consumers. The study focuses on rewards programs with Financial Institutions (FIs), the travel sector and the retail sector. This CI Market Brief focuses on consumer insights regarding rewards for the retail sector. Sample size completing the survey for the retail sector totaled 500, with 149 respondents completing detailed questions regarding grocery rewards programs.

Key Insights


1. Grocery Tops Retail Rewards Membership
Sixty-two percent of consumers belong to at least one grocery store rewards program, with an average of two memberships per consumer.

2. “Immediate Rewards/Discounts” Most Preferred Reward for Grocery Members
“Immediate Rewards/Discounts at the Point of Sale” was rated by members of grocery rewards programs as the most preferred reward. fifty-four percent of members indicated they are currently receiving this type of reward from their grocery rewards program.

3. Choice of Grocery Store Moderately Influenced by Program Membership
Fifteen percent of grocery rewards members indicated their membership was “very” influential in their choice of a grocery store. An additional 39 percent indicated the membership was “somewhat” influential.

4. Grocery Rewards Members Include More Gen X’ers Compared to Most Other Retail Programs
Twenty-eight percent of grocery rewards members are aged 25-34 compared to 24 percent of all retail program members who fall in that age category.

5. Most Grocery Members Identified by Mag Card
Ninety-three percent of consumers who are members of grocery rewards programs indicated the program uses magnetic cards to identify them as a member.