Nearly all American shoppers now consider loyalty programmes a key factor in deciding whether to return to a store, according to a new survey. The poll of 2,000 consumers by LoyaltyLion found that 91 per cent of people say such schemes influence their repeat purchases, with many logging in daily to check for discounts and bonuses.
The research highlights that Generation Z are the most engaged, with 80 per cent accessing their loyalty accounts weekly, compared to 58 per cent of all shoppers. Overall, 13 per cent of members log in daily to earn points. The report notes that in a difficult economic climate and worsening consumer confidence, these schemes have become a lifeline for both shoppers and retailers.
Typical retail loyalty programmes are free and offer exclusive discounts, perks, and points redeemable for gift cards or discounts. Savings average around 5 per cent back on purchases, according to MoneyTalksNews. With high gas prices forcing 42 per cent of consumers to cut household expenses, such savings are increasingly important. Consumer confidence in personal finances is now lower than during the pandemic or the 2008 recession.
For a family of four, 5 per cent cashback on groceries could save about £40 per month based on average spending, nearly enough to fill a Toyota Camry's petrol tank. On the retailer side, loyalty programmes boost revenue; enrolled shoppers spend 12 to 18 per cent more than non-members, and online stores see 40 per cent of revenue from loyalty members, per Capital One Shopping Research.
However, experts warn against overspending. Landmark Credit Union advises using budgeting apps and unsubscribing from promotional emails to avoid unnecessary purchases driven by loyalty incentives.
