First Data Competitive Intelligence conducted the Consumer Loyalty Study with 2,449 U.S. consumers in April 2009. The study focuses on rewards programs with Financial Institutions (FIs), the travel sector and the retail sector. This Market Brief focuses on consumer insights regarding rewards for the retail sector. Sample size completing the survey for the retail sector totaled 1,249. Sample sizes for Specialty Retail categories are as follows: Bookstore (n=174); Pet Store (n=108); Electronics Store (n=178); Office Supply Store (n=98); Clothing Store (n=166); Other Specialty Retail (n=143).
1. Bookstores Highest in Specialty Retail Program Membership
Bookstores have the highest membership of all specialty retail loyalty programs, with 44 percent of consumers belonging to a bookstore program.
2. Clothing Store Rewards Most Closely Match Member Preference
In general, the specialty retail rewards that members receive do not always match with their preferences. Clothing Store rewards most closely match member preferences with 72 percent of members receiving the most preferred reward of “Coupons for discount on total purchase.”
3. Consumers Rate Bookstore Rewards Program as Highest in Satisfaction and Value
Among all of the specialty retail rewards programs, bookstores were rated by members as having the highest value (27 percent rated in Top-2 box) and highest satisfaction (24 percent in Top-2 box).
4. Specialty Retail Members Most Influenced by Bookstore Program Membership
Loyalty program memberships have the largest influence on choice of bookstores with 70 percent of members reporting they are “very” or “somewhat” influenced by their membership in selecting a bookstore.
5. Three-Quarters of Pet Store and Bookstore Rewards Members Use Program Most Times
Pet store and bookstore rewards programs are used “every time” or “most times” by 76 percent and 75 percent (respectively) of members in those programs. Electronics stores members are also frequent users, with 74 percent of members using their membership “every time” or “most times.”