Retail Shoppers Expect to Save Money Through Customer Loyalty Programs

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According to a nationwide study funded by Citi Retail Services, more than two-thirds of average Americans who participate in loyalty rewards program expect to save money through their redemptions, especially during the holiday season.

The survey also found that 86% of customers say that they are more loyal to brands that offer “loyalty programs”.

“In a world where everyone is talking about immediate gratification and flash sales, customers are taking proactive means to plan out their spending and stretch their budgets in a strategic way. We found that two-thirds of consumers join a rewards program even if it did not result in instant savings,”

Leslie McNamara, Managing Director, Business and Market Development for Citi Retail Services.

Customers nowadays want to know their shopping options by researching their purchases and even joining rewards programs to save money.

Some buyers may deal with specific retailers or even apply for any payment options that will help them save more money during the holiday season.

According to McNamara, at least 72% of rewards users think they’re smarter holiday shoppers compared to their peers and at least 67% of shoppers said they’ve already done some extra measures to earn or redeem loyalty rewards.

Source: Citi Retail Services

Loyalty Rewards are a Big Deal to Everyone

At least eight in every ten consumers belong to at least one rewards program across the country. 83% of Millennials are fond of rewards programs, with Generation X closely follows at 73%.

According to the study, there are even some shoppers who have taken extra steps to maximize their rewards points.

Studies show that some shoppers are purchasing items to make sure that they’re getting more bonus rewards in return, 42% of shoppers buy in bulk while 25% of them shop at late times just to get the promo.

For small businesses, to add loyalty program may require purchasing an extension to their eCommerce platform or using a service like Swell Rewards which integrates with many shopping platforms.

It may be too late to add these program for the holiday season, but a loyalty or rewards program should be something you add to your To-Do list for 2018.

How do you feel about loyalty rewards programs? Comment down below and share your experiences with us.

For almost 10 years Dave has been involved with eCommerce with a particular interest in the marketplaces and the huge opportunities available for sellers when utilizing a multi-channel strategy. After a year of being the UK’s youngest eCommerce consultant it was the opportunity to start UnderstandingE with Matt Ogborne showing the world how to utilize Magento as the Third Generation of Multi-Channel software. Dave also recently started a YouTube channel called the Manc Entrepreneur (click YouTube icon link below to watch Dave's videos) where he discusses all things eCommerce and entrepreneurship aimed to help young entrepreneurs get started on their own journey. When Dave isn’t working his main interests include, Technology, Cars and throwing himself off high things into water.


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