![\"credit](\"https://www.pymnts.com/wp-content/uploads/2024/06/credit-cards-rewards-demographics.png\")
Achieving success with loyalty programs often proves elusive for brands that prioritize the wrong elements. The concept of product-market fit, widely discussed in entrepreneurial circles, highlights the imperative of aligning products with market demands. Many loyalty initiatives flounder because they focus inwardly on the program mechanics rather than outwardly on understanding genuine customer needs.
\nThis results in a deluge of uninspired loyalty programs flooding the market, lacking differentiation and customer resonance.
\nCustomer loyalty expert Robbie Baxter, founder of Peninsula Strategies, author and host of the podcast \u201cSubscription Stories,\u201d told PYMNTS the key to a successful loyalty program is having \u201ca clear understanding of the customer you\u2019re trying to engage.\u201d
\nBrands can get a clear understanding of their respective customer bases through \u201cproduct market fit on an ongoing basis,\u201d\u00a0 Baxter noted. \u201cJust like any good offering.\u201d
\nTo build a successful loyalty program, prioritize your customers\u2019 needs and preferences. Instead of defaulting to a points-based system, delve deeper into what motivates customers and what challenges they face. By crafting a program tailored to their unique values and pain points, you can differentiate your offering in a crowded marketplace, ensuring it provides genuine value and creates lasting customer loyalty.
\nLaunched in 2005, Amazon Prime originally addressed customer frustration with shipping times. Initially, the program\u2019s focus was on delivering the loyalty program perks that its top customers desired, gradually expanding its offerings over time. Amazon listened to its customers, understood their pain points, and continually invested to acquire and retain more members and transform them into brand advocates.
\nThe emphasis here is on investing in the customer rather than the product. In today\u2019s landscape, instant gratification holds heightened significance, particularly evident in subscription loyalty programs like Amazon Prime, where members receive instant benefits. Amazon Prime members spend nearly twice as much annually compared to non-Prime members.
\nThe annual fee structure enables Amazon to provide extensive benefits to those customers who derive the most value from their loyalty program. The free trial plays a pivotal role, allowing more consumers to assess its suitability for their usage patterns.
\nAmazon Prime now has more than 200 million members across 25 countries. What Amazon has done with Prime is a textbook example of product market-fit.
\nSubscription-based loyalty programs, like My Best Buy Plus, have gained in popularity and customers enjoy them because they receive next-level benefits and rewards that free points programs can\u2019t offer. Typically, subscription loyalty program members pay monthly or annual fees while brands receive a recurring revenue stream, elevated engagement and enhanced customer data they can use to tailor member communications.
\nPersonalization, value and enhanced customer experience are key drivers. Unlike points programs catering to a broader base, subscription programs target top customers, enabling more tailored offerings and communication. Additionally, exclusive rewards like discounts and early access make members feel valued.
\nWhile there is certainly a place for points-based loyalty programs, Baxter noted that subscription loyalty programs \u201crequire the customer to raise their hand and make a commitment up front to a particular retailer.\u201d \u00a0
\nSubscription loyalty programs require varying types of benefits, depending on the brand and the \u201ccustomer segment it\u2019s trying to serve,\u201d Baxter noted. \u201cBut think about what benefit is most likely to drive acquisition, as well as the benefits that will drive engagement and habits. Both are important.\u201d
\nMaking loyalty program members feel like they\u2019re part of a community is crucial to long-term engagement and advocacy.
\nREI was founded in 1938 when a group of 23 climbing friends, united by their love for the outdoors, decided to source quality and affordable gear for their adventures. Today the REI community has 22 million lifetime members. The program is appealing for many reasons, including a $30 lifetime membership, exclusive events (garage sales) and discounts, and an annual member dividend.
\n\u201cCommunity is a big commitment for an organization \u2014 so before investing in building a community feeling, make sure you know the ROI and also the benefit that the community will provide,\u201d Baxter added. \u201cIt\u2019s not just a matter of having a community platform \u2014 you need to facilitate the connections within the community under the brand umbrella.\u201d
\nFor all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter.
\nThe post Unlocking Loyalty’s Potential: How Product-Market Fit Drives Program Success appeared first on PYMNTS.com.
\n", "content_text": "Achieving success with loyalty programs often proves elusive for brands that prioritize the wrong elements. The concept of product-market fit, widely discussed in entrepreneurial circles, highlights the imperative of aligning products with market demands. Many loyalty initiatives flounder because they focus inwardly on the program mechanics rather than outwardly on understanding genuine customer needs. \nThis results in a deluge of uninspired loyalty programs flooding the market, lacking differentiation and customer resonance.\nCustomer loyalty expert Robbie Baxter, founder of Peninsula Strategies, author and host of the podcast \u201cSubscription Stories,\u201d told PYMNTS the key to a successful loyalty program is having \u201ca clear understanding of the customer you\u2019re trying to engage.\u201d\nBrands can get a clear understanding of their respective customer bases through \u201cproduct market fit on an ongoing basis,\u201d\u00a0 Baxter noted. \u201cJust like any good offering.\u201d\nTo build a successful loyalty program, prioritize your customers\u2019 needs and preferences. Instead of defaulting to a points-based system, delve deeper into what motivates customers and what challenges they face. By crafting a program tailored to their unique values and pain points, you can differentiate your offering in a crowded marketplace, ensuring it provides genuine value and creates lasting customer loyalty.\nAmazon Prime\nLaunched in 2005, Amazon Prime originally addressed customer frustration with shipping times. Initially, the program\u2019s focus was on delivering the loyalty program perks that its top customers desired, gradually expanding its offerings over time. Amazon listened to its customers, understood their pain points, and continually invested to acquire and retain more members and transform them into brand advocates.\nThe emphasis here is on investing in the customer rather than the product. In today\u2019s landscape, instant gratification holds heightened significance, particularly evident in subscription loyalty programs like Amazon Prime, where members receive instant benefits. Amazon Prime members spend nearly twice as much annually compared to non-Prime members. \nThe annual fee structure enables Amazon to provide extensive benefits to those customers who derive the most value from their loyalty program. The free trial plays a pivotal role, allowing more consumers to assess its suitability for their usage patterns.\nAmazon Prime now has more than 200 million members across 25 countries. What Amazon has done with Prime is a textbook example of product market-fit.\nSubscription-Based Programs\nSubscription-based loyalty programs, like My Best Buy Plus, have gained in popularity and customers enjoy them because they receive next-level benefits and rewards that free points programs can\u2019t offer. Typically, subscription loyalty program members pay monthly or annual fees while brands receive a recurring revenue stream, elevated engagement and enhanced customer data they can use to tailor member communications.\nPersonalization, value and enhanced customer experience are key drivers. Unlike points programs catering to a broader base, subscription programs target top customers, enabling more tailored offerings and communication. Additionally, exclusive rewards like discounts and early access make members feel valued.\nWhile there is certainly a place for points-based loyalty programs, Baxter noted that subscription loyalty programs \u201crequire the customer to raise their hand and make a commitment up front to a particular retailer.\u201d \u00a0\nSubscription loyalty programs require varying types of benefits, depending on the brand and the \u201ccustomer segment it\u2019s trying to serve,\u201d Baxter noted. \u201cBut think about what benefit is most likely to drive acquisition, as well as the benefits that will drive engagement and habits. Both are important.\u201d\nBuilding Connections\nMaking loyalty program members feel like they\u2019re part of a community is crucial to long-term engagement and advocacy.\nREI was founded in 1938 when a group of 23 climbing friends, united by their love for the outdoors, decided to source quality and affordable gear for their adventures. Today the REI community has 22 million lifetime members. The program is appealing for many reasons, including a $30 lifetime membership, exclusive events (garage sales) and discounts, and an annual member dividend.\n\u201cCommunity is a big commitment for an organization \u2014 so before investing in building a community feeling, make sure you know the ROI and also the benefit that the community will provide,\u201d Baxter added. \u201cIt\u2019s not just a matter of having a community platform \u2014 you need to facilitate the connections within the community under the brand umbrella.\u201d\nFor all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter.\nThe post Unlocking Loyalty’s Potential: How Product-Market Fit Drives Program Success appeared first on PYMNTS.com.", "date_published": "2024-07-23T08:00:50-04:00", "date_modified": "2024-07-25T09:45:33-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/REI-subscription-loyalty.jpg", "tags": [ "Amazon Prime", "digital transformation", "ecommerce", "loyalty programs", "loyalty rewards", "My Best Buy Plus", "News", "Peninsula Strategies", "PYMNTS News", "REI", "Retail", "Robbie Baxter", "subscription commerce", "Subscription Stories", "subscriptions", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=2013268", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/dominos-loyalty-refresh-doubles-members-pickup-orders-amid-consumer-hesitance/", "title": "Domino\u2019s Loyalty Refresh Doubles Members\u2019 Pickup Orders Amid Consumer Hesitance", "content_html": "As consumers cut back their overall spending, Domino\u2019s has been able to get its loyalty members to buy more by offering more effective rewards.
\nOn a call with analysts Thursday (July 18) discussing the quick-service restaurant (QSR) behemoth\u2019s second quarter 2024 financial results, CEO Russell Weiner shared that loyalty reward redemptions for pickup orders have skyrocketed since the brand refreshed its program last fall.
\n\u201cWe said, with the new loyalty program, we wanted to drive light users and frequency there \u2014 check. We wanted to continue, obviously, to drive our delivery customers \u2026 but we also wanted to engage our carryout customers \u2014 check there. So, it really is doing every single thing that we had hoped it would,\u201d Weiner said. \u201cOrders with loyalty redemptions in the first half of this year are twice as high as they were under the old program in the first half of last year.\u201d
\nThe program relaunch lowered the threshold for earning points and reduced the number of orders required for redemption. By targeting light users and encouraging repeat purchases, the Domino\u2019s loyalty program has fostered a stronger customer base. The high redemption rates reflect consumers’ preference for value-driven incentives, making the loyalty program a cornerstone of Domino\u2019s growth strategy. Additionally, loyalty promotions such as \u201cBoost weeks\u201d have effectively spurred transactions and customer acquisition, contributing to the company\u2019s positive order counts.
\nIndeed, QSR customers want loyalty rewards. PYMNTS Intelligence research reveals that 51% report using a restaurant loyalty program, with 49% participating in these programs at QSRs.
\nAs inflation and economic uncertainty have squeezed household budgets, many consumers have become more selective with their discretionary spending, impacting dining choices and frequency.
\nWith dining out being, for many, an unnecessary expense, the majority of consumers cut back in times of economic distress. PYMNTS Intelligence data from last year revealed that 78% of consumers have been eating at home more often to save money amid inflation.
\nYet Domino\u2019s, for its part, saw sales growth domestically and abroad, though perhaps not enough for investors\u2019 liking \u2014 the stock is down nearly 14% at the time of this writing since the opening of the market Thursday morning.
\n\u201cConsumer spending [is] slow, but let’s think about what’s happened with that as a backdrop. We’ve grown orders in our delivery business, our carryout business, every income cohort,\u201d Weiner said. \u201cWe’ve grown order count in international. [That\u2019s] what’s going on in an economy where folks are maybe struggling to decide what to buy.\u201d
\nThe brand\u2019s integration with Uber Eats, which began last year after the pizza chain held out against aggregators for as long as it could, is also growing. Sandeep Reddy, CFO, mentioned that sales from Uber grew to 1.9% of total sales in Q2, with the company targeting 3% by the end of the year.
\nThe partnership with Uber Eats exemplifies Domino\u2019s relatively recent dual-channel approach, combining the strengths of its own digital platforms with those of third-party aggregators. This strategy not only broadens the company\u2019s reach but also ensures that it captures a fair share of the growing food delivery market.
\nThe company is leveraging discounting to drive growth on the platform.
\n\u201cWhether it’s how customers shop or part of the algorithm or a little bit of both, starting out with a slightly higher price that you can discount from is a way to get more eyeballs, and so we’ve continued to test and pivot that way, and you are seeing it in the results,\u201d Weiner said.
\nThe post Domino\u2019s Loyalty Refresh Doubles Members\u2019 Pickup Orders Amid Consumer Hesitance appeared first on PYMNTS.com.
\n", "content_text": "As consumers cut back their overall spending, Domino\u2019s has been able to get its loyalty members to buy more by offering more effective rewards.\nOn a call with analysts Thursday (July 18) discussing the quick-service restaurant (QSR) behemoth\u2019s second quarter 2024 financial results, CEO Russell Weiner shared that loyalty reward redemptions for pickup orders have skyrocketed since the brand refreshed its program last fall.\n\u201cWe said, with the new loyalty program, we wanted to drive light users and frequency there \u2014 check. We wanted to continue, obviously, to drive our delivery customers \u2026 but we also wanted to engage our carryout customers \u2014 check there. So, it really is doing every single thing that we had hoped it would,\u201d Weiner said. \u201cOrders with loyalty redemptions in the first half of this year are twice as high as they were under the old program in the first half of last year.\u201d\nThe program relaunch lowered the threshold for earning points and reduced the number of orders required for redemption. By targeting light users and encouraging repeat purchases, the Domino\u2019s loyalty program has fostered a stronger customer base. The high redemption rates reflect consumers’ preference for value-driven incentives, making the loyalty program a cornerstone of Domino\u2019s growth strategy. Additionally, loyalty promotions such as \u201cBoost weeks\u201d have effectively spurred transactions and customer acquisition, contributing to the company\u2019s positive order counts.\nIndeed, QSR customers want loyalty rewards. PYMNTS Intelligence research reveals that 51% report using a restaurant loyalty program, with 49% participating in these programs at QSRs.\nThe Cautious Consumer\nAs inflation and economic uncertainty have squeezed household budgets, many consumers have become more selective with their discretionary spending, impacting dining choices and frequency.\nWith dining out being, for many, an unnecessary expense, the majority of consumers cut back in times of economic distress. PYMNTS Intelligence data from last year revealed that 78% of consumers have been eating at home more often to save money amid inflation.\nYet Domino\u2019s, for its part, saw sales growth domestically and abroad, though perhaps not enough for investors\u2019 liking \u2014 the stock is down nearly 14% at the time of this writing since the opening of the market Thursday morning.\n\u201cConsumer spending [is] slow, but let’s think about what’s happened with that as a backdrop. We’ve grown orders in our delivery business, our carryout business, every income cohort,\u201d Weiner said. \u201cWe’ve grown order count in international. [That\u2019s] what’s going on in an economy where folks are maybe struggling to decide what to buy.\u201d\nThe Aggregator Boost\nThe brand\u2019s integration with Uber Eats, which began last year after the pizza chain held out against aggregators for as long as it could, is also growing. Sandeep Reddy, CFO, mentioned that sales from Uber grew to 1.9% of total sales in Q2, with the company targeting 3% by the end of the year.\nThe partnership with Uber Eats exemplifies Domino\u2019s relatively recent dual-channel approach, combining the strengths of its own digital platforms with those of third-party aggregators. This strategy not only broadens the company\u2019s reach but also ensures that it captures a fair share of the growing food delivery market.\nThe company is leveraging discounting to drive growth on the platform.\n\u201cWhether it’s how customers shop or part of the algorithm or a little bit of both, starting out with a slightly higher price that you can discount from is a way to get more eyeballs, and so we’ve continued to test and pivot that way, and you are seeing it in the results,\u201d Weiner said.\nThe post Domino\u2019s Loyalty Refresh Doubles Members\u2019 Pickup Orders Amid Consumer Hesitance appeared first on PYMNTS.com.", "date_published": "2024-07-18T15:17:00-04:00", "date_modified": "2024-07-18T15:17:00-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/10/Dominos-pickup.jpg", "tags": [ "delivery", "Domino's", "Earnings", "loyalty", "News", "PYMNTS News", "QSRs", "Restaurants", "Rewards", "Russell Weiner", "Uber Eats", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=2011895", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/amex-urges-merchants-to-embrace-digital-loyaltys-hyper-personalization-mandate/", "title": "Amex Urges Merchants to Embrace Digital Loyalty\u2019s Hyper-Personalization Mandate", "content_html": "If a business doesn\u2019t meet its customers\u2019 needs, its competitors will be happy to.
\nThat\u2019s increasingly the reality for businesses today.
\nIn an era where consumer expectations around convenience and personalization are at an all-time high, digital loyalty programs have emerged as a component for businesses looking to stay competitive while capturing greater customer lifetime value.
\n\u201cCustomer loyalty isn\u2019t a new concept, but it has evolved,\u201d American Express Vice President and General Manager of Amex Offers Erin Frankcombe\u00a0told PYMNTS. She noted that digital coupons, reward points and loyalty statuses that unlock enhanced benefits are now table stakes for meeting customer expectations.
\nWhile loyalty was traditionally cultivated through direct, personal interactions between shop owners and patrons, the modern landscape has been transformed by digital-first expectations and approaches, where convenience and seamless experiences across mobile and web platforms are prioritized.
\nStill, customer loyalty is here to stay, with rewards and loyalty programs adapting to evolving consumer spending behaviors.
\n\u201cWe see four key themes shaping the loyalty and rewards landscape,\u201d Frankcombe said, citing that businesses need to adapt to hyper-personalization, sophisticated targeting, embracing a digital-first approach and reward-savvy customers as urgent priorities.
\nBut while embracing those themes may seem daunting for some merchants, there is no need for them to set up a digital loyalty program on their own.
\nPartnerships can be invaluable in providing reward and loyalty solutions that help businesses maintain a competitive edge and foster lasting customer relationships, Frankcombe explained.
\nIn today\u2019s world, where customization is expected in all aspects of life, from social media feeds to coffee orders, the bar for personalized offerings has never been higher.
\nThrough rich data and insights, Amex Offers \u2014 a platform from American Express that provides card-linked offers tailored to customers based on their location and spending habits \u2014 matches value from merchant advertisers to the most relevant shoppers, Frankcombe explained.
\n\u201cEach card member might get different offers that are even tailored across different Amex card types,\u201d she said, driving increased engagement and loyalty while delivering personalized experiences at scale.
\nOffers are also easy to add and earn, she said.
\n\u201cThere\u2019s an opportunity [for merchant advertisers] to drive spend at specific times of the year or at significant moments \u2014 think Valentine\u2019s Day, Mother\u2019s Day or even Cyber Monday,\u201d Frankcombe added, stressing the importance of focusing on value delivery versus sheer reach.
\nAs for how it works?
\nAmex\u2019s integrated payments model provides merchants with insights into Amex\u2019s high-spending card members\u2019 spending patterns. This data-driven approach allows for more effective customer targeting, performance measurement and business growth.
\nFor instance, Frankcombe explained that a regional retailer can use Amex Offers to help attract new shoppers in a specific area or increase frequency among existing low-frequency shoppers, using a cost-effective and ROI-positive method for business growth.
\nOffering all the rewards in the world wouldn\u2019t matter if the target customer struggled to use them, or they weren\u2019t relevant. This is particularly true across eCommerce and mobile shopping, the rise of which has underscored the importance of ease and convenience in the customer journey.
\nGiven this backdrop, a key differentiator for Amex Offers is its integrated payments model.
\nAs Frankcombe noted, Amex operates as a card issuer, merchant acquirer and payment network, providing unique insight across the payment transaction. This integrated model, coupled with Amex\u2019s global footprint, is a tool for merchants to help drive business.
\n\u201cWe can expect rewards and loyalty programs to continue to adapt to customer spending behavior by focusing heavily on hyper-personalization, unlocking growth today and into the future,\u201d she said.
\nThe post Amex Urges Merchants to Embrace Digital Loyalty\u2019s Hyper-Personalization Mandate appeared first on PYMNTS.com.
\n", "content_text": "If a business doesn\u2019t meet its customers\u2019 needs, its competitors will be happy to.\nThat\u2019s increasingly the reality for businesses today.\nIn an era where consumer expectations around convenience and personalization are at an all-time high, digital loyalty programs have emerged as a component for businesses looking to stay competitive while capturing greater customer lifetime value.\n\u201cCustomer loyalty isn\u2019t a new concept, but it has evolved,\u201d American Express Vice President and General Manager of Amex Offers Erin Frankcombe\u00a0told PYMNTS. She noted that digital coupons, reward points and loyalty statuses that unlock enhanced benefits are now table stakes for meeting customer expectations.\nWhile loyalty was traditionally cultivated through direct, personal interactions between shop owners and patrons, the modern landscape has been transformed by digital-first expectations and approaches, where convenience and seamless experiences across mobile and web platforms are prioritized.\nStill, customer loyalty is here to stay, with rewards and loyalty programs adapting to evolving consumer spending behaviors.\n\u201cWe see four key themes shaping the loyalty and rewards landscape,\u201d Frankcombe said, citing that businesses need to adapt to hyper-personalization, sophisticated targeting, embracing a digital-first approach and reward-savvy customers as urgent priorities.\nBut while embracing those themes may seem daunting for some merchants, there is no need for them to set up a digital loyalty program on their own.\nPartnerships can be invaluable in providing reward and loyalty solutions that help businesses maintain a competitive edge and foster lasting customer relationships, Frankcombe explained.\nEvolution of Digital Loyalty Programs\nIn today\u2019s world, where customization is expected in all aspects of life, from social media feeds to coffee orders, the bar for personalized offerings has never been higher.\nThrough rich data and insights, Amex Offers \u2014 a platform from American Express that provides card-linked offers tailored to customers based on their location and spending habits \u2014 matches value from merchant advertisers to the most relevant shoppers, Frankcombe explained.\n\u201cEach card member might get different offers that are even tailored across different Amex card types,\u201d she said, driving increased engagement and loyalty while delivering personalized experiences at scale.\nOffers are also easy to add and earn, she said.\n\u201cThere\u2019s an opportunity [for merchant advertisers] to drive spend at specific times of the year or at significant moments \u2014 think Valentine\u2019s Day, Mother\u2019s Day or even Cyber Monday,\u201d Frankcombe added, stressing the importance of focusing on value delivery versus sheer reach.\nAs for how it works?\nAmex\u2019s integrated payments model provides merchants with insights into Amex\u2019s high-spending card members\u2019 spending patterns. This data-driven approach allows for more effective customer targeting, performance measurement and business growth.\nFor instance, Frankcombe explained that a regional retailer can use Amex Offers to help attract new shoppers in a specific area or increase frequency among existing low-frequency shoppers, using a cost-effective and ROI-positive method for business growth.\nThe Importance of Ease of Use\nOffering all the rewards in the world wouldn\u2019t matter if the target customer struggled to use them, or they weren\u2019t relevant. This is particularly true across eCommerce and mobile shopping, the rise of which has underscored the importance of ease and convenience in the customer journey.\nGiven this backdrop, a key differentiator for Amex Offers is its integrated payments model.\nAs Frankcombe noted, Amex operates as a card issuer, merchant acquirer and payment network, providing unique insight across the payment transaction. This integrated model, coupled with Amex\u2019s global footprint, is a tool for merchants to help drive business.\n\u201cWe can expect rewards and loyalty programs to continue to adapt to customer spending behavior by focusing heavily on hyper-personalization, unlocking growth today and into the future,\u201d she said.\nThe post Amex Urges Merchants to Embrace Digital Loyalty\u2019s Hyper-Personalization Mandate appeared first on PYMNTS.com.", "date_published": "2024-07-17T04:00:34-04:00", "date_modified": "2024-07-16T21:34:54-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Amex-SB4.jpg", "tags": [ "American Express", "Amex", "Card Linked Offers", "Consumer Spending", "digital loyalty", "ecommerce", "Featured News", "loyalty", "News", "PYMNTS News", "pymnts tv", "Retail", "Rewards", "video", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=1971198", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/5-metrics-to-elevate-your-loyalty-program/", "title": "5 Metrics to Elevate Your Loyalty Program", "content_html": "Brands use loyalty programs to increase sales, acquire and retain members, enhance the customer experience and create advocates. Return on investment (ROI) is foremost among any brand\u2019s metric to measure the efficiency and performance of a loyalty program. Since every loyalty program is different, calculating your ROI can be challenging.
\nThe purpose of investing in loyalty programs is so brands can strengthen their customer relationships, gather key insights and grow revenue. Loyalty terms like acquisition, retention and usage are important in this process.
\nAs brands dive deeper into improving their digital transformations, here are five key metrics that can elevate a brand\u2019s ROI.
\nThis metric is the most important one for any free or paid loyalty program. If members aren\u2019t engaged, they won\u2019t use the program very often or at all.
\nThis metric measures the program benefits your members are using. A high figure shows that members are enjoying the program\u2019s benefits thoroughly. If this rate is lower, it\u2019s time to find out what\u2019s causing it and make suitable adjustments.
\nFor example, Albertsons Companies saw significant increases in digital engagement in its fourth quarter and\u00a0full year\u00a0fiscal 2023\u00a0financial results. According to the results, digital sales soared 24%. This massive increase was attributed to the chain\u2019s loyalty program, which saw its membership grow by 16% to nearly 40 million.
\nSuccessful loyalty programs will result in your members spending more as they shop more.
\nAs members use the program and earn rewards, they are likelier to shop more frequently. For example, that\u2019s why Amazon Prime members spend nearly twice as much per year on average than non-Prime members. If you have a great loyalty program, members are likely to shop more frequently. But if this\u00a0number is flat, your members might not see enough value or differentiation to engage regularly.
\nTwo years ago, fast-casual brand Rubio\u2019s Restaurants, which has more than 150 restaurants across California, Nevada and Arizona, launched a new loyalty program to give members more visibility and choice. Rubio\u2019s Director of Loyalty & Digital Experience\u00a0Adam Fox\u00a0spoke with PYMNTS about how these changes can drive purchase frequency in the face of rising food prices.
\n\u201cThe reason we went with this type of program is listening to our guests,\u201d he said. \u201cThey wanted a program where they can redeem for what they wanted to. So, this just gives our guests so much choice and flexibility whether they want to save up for free entrees or if they want if they want to feed their kids for free.\u201d
\nChurn refers to the percentage of members that cancel their memberships per month.
\nA high churn rate is usually a symptom of members not getting value out of your program or getting the wrong types of benefits. If this number is high, you should survey your members and examine your data to see what benefits they\u2019re using and where they want more value.
\nOne way to improve your loyalty program churn rate is to offer experiential benefits. For instance, Six Flags, an operator of theme parks and water parks, launched a metaverse experience on\u00a0Roblox that includes a rewards program. Users can collect \u201ccoastercoins\u201d in the new metaverse experience and redeem them for Six Flags rewards and activities at the company\u2019s physical parks.
\nThis metric is critical for any loyalty program. If members aren\u2019t engaged, they won\u2019t use your program often or ever. This shows which program benefits your members are using and how fast they\u2019re using them. A high figure shows that members are enjoying the program\u2019s benefits thoroughly. If the rate is low, it\u2019s time to re-evaluate. Do members even want the rewards you\u2019re offering? Are there certain benefits that can be replaced with others?
\nIn April, JCPenney launched its Rewards and Credit Program, a free loyalty program for customers. JCPenney has more than 20 million Rewards members that shop there an average of five times per year. The new program will double the rate at which Rewards members earn points, ensuring every member receives money back each year. The program is free to join and guarantees $20 in CashPass Rewards.
\nIf your loyalty program\u2019s signup process is too complex, consumers will look elsewhere. A loyalty program must be simple to use to spark elevated engagement.
\nEarlier this year, CVS listened to its customers and simplified its loyalty program. Instead of members managing four separate programs, CVS officials consolidated the program into a single membership with two tiers.
\nThose aren\u2019t the only relevant five metrics, but they\u2019re arguably the most important. By diligently tracking and optimizing member engagement, purchase frequency, churn rate, reward redemption and program simplicity, brands can significantly enhance the ROI of their loyalty programs.
\nThese metrics provide crucial insights into customer behavior and preferences, enabling brands to fine-tune their strategies for maximum impact. As digital transformations continue to evolve, leveraging these key metrics will not only boost loyalty program performance but also foster deeper customer relationships and drive long-term growth.
\nThe post 5 Metrics to Elevate Your Loyalty Program appeared first on PYMNTS.com.
\n", "content_text": "Brands use loyalty programs to increase sales, acquire and retain members, enhance the customer experience and create advocates. Return on investment (ROI) is foremost among any brand\u2019s metric to measure the efficiency and performance of a loyalty program. Since every loyalty program is different, calculating your ROI can be challenging.\nThe purpose of investing in loyalty programs is so brands can strengthen their customer relationships, gather key insights and grow revenue. Loyalty terms like acquisition, retention and usage are important in this process.\nAs brands dive deeper into improving their digital transformations, here are five key metrics that can elevate a brand\u2019s ROI.\nMember Engagement\nThis metric is the most important one for any free or paid loyalty program. If members aren\u2019t engaged, they won\u2019t use the program very often or at all.\nThis metric measures the program benefits your members are using. A high figure shows that members are enjoying the program\u2019s benefits thoroughly. If this rate is lower, it\u2019s time to find out what\u2019s causing it and make suitable adjustments.\nFor example, Albertsons Companies saw significant increases in digital engagement in its fourth quarter and\u00a0full year\u00a0fiscal 2023\u00a0financial results. According to the results, digital sales soared 24%. This massive increase was attributed to the chain\u2019s loyalty program, which saw its membership grow by 16% to nearly 40 million.\nPurchase Frequency\nSuccessful loyalty programs will result in your members spending more as they shop more.\nAs members use the program and earn rewards, they are likelier to shop more frequently. For example, that\u2019s why Amazon Prime members spend nearly twice as much per year on average than non-Prime members. If you have a great loyalty program, members are likely to shop more frequently. But if this\u00a0number is flat, your members might not see enough value or differentiation to engage regularly.\nTwo years ago, fast-casual brand Rubio\u2019s Restaurants, which has more than 150 restaurants across California, Nevada and Arizona, launched a new loyalty program to give members more visibility and choice. Rubio\u2019s Director of Loyalty & Digital Experience\u00a0Adam Fox\u00a0spoke with PYMNTS about how these changes can drive purchase frequency in the face of rising food prices.\n\u201cThe reason we went with this type of program is listening to our guests,\u201d he said. \u201cThey wanted a program where they can redeem for what they wanted to. So, this just gives our guests so much choice and flexibility whether they want to save up for free entrees or if they want if they want to feed their kids for free.\u201d\nChurn Rate\nChurn refers to the percentage of members that cancel their memberships per month.\nA high churn rate is usually a symptom of members not getting value out of your program or getting the wrong types of benefits. If this number is high, you should survey your members and examine your data to see what benefits they\u2019re using and where they want more value.\nOne way to improve your loyalty program churn rate is to offer experiential benefits. For instance, Six Flags, an operator of theme parks and water parks, launched a metaverse experience on\u00a0Roblox that includes a rewards program. Users can collect \u201ccoastercoins\u201d in the new metaverse experience and redeem them for Six Flags rewards and activities at the company\u2019s physical parks.\nReward Redemption Rate\u00a0\nThis metric is critical for any loyalty program. If members aren\u2019t engaged, they won\u2019t use your program often or ever. This shows which program benefits your members are using and how fast they\u2019re using them. A high figure shows that members are enjoying the program\u2019s benefits thoroughly. If the rate is low, it\u2019s time to re-evaluate. Do members even want the rewards you\u2019re offering? Are there certain benefits that can be replaced with others?\nIn April, JCPenney launched its Rewards and Credit Program, a free loyalty program for customers. JCPenney has more than 20 million Rewards members that shop there an average of five times per year. The new program will double the rate at which Rewards members earn points, ensuring every member receives money back each year. The program is free to join and guarantees $20 in CashPass Rewards.\nKeep It Simple\nIf your loyalty program\u2019s signup process is too complex, consumers will look elsewhere. A loyalty program must be simple to use to spark elevated engagement.\nEarlier this year, CVS listened to its customers and simplified its loyalty program. Instead of members managing four separate programs, CVS officials consolidated the program into a single membership with two tiers.\nThose aren\u2019t the only relevant five metrics, but they\u2019re arguably the most important. By diligently tracking and optimizing member engagement, purchase frequency, churn rate, reward redemption and program simplicity, brands can significantly enhance the ROI of their loyalty programs.\nThese metrics provide crucial insights into customer behavior and preferences, enabling brands to fine-tune their strategies for maximum impact. As digital transformations continue to evolve, leveraging these key metrics will not only boost loyalty program performance but also foster deeper customer relationships and drive long-term growth.\nThe post 5 Metrics to Elevate Your Loyalty Program appeared first on PYMNTS.com.", "date_published": "2024-07-04T04:00:31-04:00", "date_modified": "2024-07-03T22:01:15-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Loyalty-rewards-programs.png", "tags": [ "Business", "Commerce", "digital transformation", "Featured News", "food and beverages", "loyalty", "loyalty programs", "News", "PYMNTS News", "QSRs", "Restaurants", "Retail", "Rewards", "ROI", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=1967337", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/flipkart-launches-upi-payment-app-offering-cashback-rewards/", "title": "Flipkart Launches UPI\u00a0Payment App Offering Cashback Rewards", "content_html": "Walmart-owned Indian eCommerce firm\u00a0Flipkart has launched a Unified Payments Interface (UPI) payment app that offers up to 5% cashback on purchases.
\nThe new\u00a0super.money app is available on the Google Play store.
\n\u201cUnlike other UPI apps, we\u2019ll never offer you useless coupons, scratch cards or coins,\u201d the company said in the store. \u201cInstead, get used to up to 5% cashback on every transaction.\u201d
\nThe app will also offer \u201ccredit cards that improve your credit\u201d and \u201cpersonal loans that won\u2019t take multiple red tape to get,\u201d\u00a0super.money, a Flipkart Group company, said on its LinkedIn\u00a0page.
\nCurrently, the app aims to differentiate itself from others with an uncluttered user experience and a focus on rewards for every transaction, a\u00a0super.money\u00a0spokesperson\u00a0told TechCrunch.
\nThe app is currently in beta, and the company will continue to refine the product based on user feedback, the spokesperson added.
\nThe launch of\u00a0super.money\u00a0follows Flipkart\u2019s separation from Indian mobile payments app\u00a0PhonePe in late 2022, according to the report.
\nWhile\u00a0Flipkart had no immediate plans to offer mobile payments at that time, it already offered other financial services like loans to merchants and installment payments for customers, the report said.
\nThe Flipkart\u00a0marketplace includes upwards of 500 million registered users, 1.4 million sellers and 150 million products across 80 categories, the company said in May.
\nWalmart has said that both Flipkart and PhonePe, which Walmart also owns, could become\u00a0$100 billion businesses. The companies could go public in a couple of years, the retailer said in early June.
\nIn March, Flipkart launched a\u00a0UPI handle to enhance its digital payment offerings by adding the instant payments system. The company said at the time that the Flipkart UPI allows users to set up their own UPI handle for transactions, both online and offline, and both within and outside the Flipkart marketplace.
\nPYMNTS Intelligence has found that 55% of consumers in India paid for their most recent digital\u00a0retail purchase with UPI. In addition, India accounts for 46% of the world\u2019s real-time payments and logs more digital transactions than any other nation, according to the \u201c2023 Global Digital Shopping Index: India Edition,\u201d a PYMNTS Intelligence and\u00a0Cybersource collaboration.
\nThe post Flipkart Launches UPI\u00a0Payment App Offering Cashback Rewards appeared first on PYMNTS.com.
\n", "content_text": "Walmart-owned Indian eCommerce firm\u00a0Flipkart has launched a Unified Payments Interface (UPI) payment app that offers up to 5% cashback on purchases.\nThe new\u00a0super.money app is available on the Google Play store.\n\u201cUnlike other UPI apps, we\u2019ll never offer you useless coupons, scratch cards or coins,\u201d the company said in the store. \u201cInstead, get used to up to 5% cashback on every transaction.\u201d\nThe app will also offer \u201ccredit cards that improve your credit\u201d and \u201cpersonal loans that won\u2019t take multiple red tape to get,\u201d\u00a0super.money, a Flipkart Group company, said on its LinkedIn\u00a0page.\nCurrently, the app aims to differentiate itself from others with an uncluttered user experience and a focus on rewards for every transaction, a\u00a0super.money\u00a0spokesperson\u00a0told TechCrunch.\nThe app is currently in beta, and the company will continue to refine the product based on user feedback, the spokesperson added.\nThe launch of\u00a0super.money\u00a0follows Flipkart\u2019s separation from Indian mobile payments app\u00a0PhonePe in late 2022, according to the report.\nWhile\u00a0Flipkart had no immediate plans to offer mobile payments at that time, it already offered other financial services like loans to merchants and installment payments for customers, the report said.\nThe Flipkart\u00a0marketplace includes upwards of 500 million registered users, 1.4 million sellers and 150 million products across 80 categories, the company said in May.\nWalmart has said that both Flipkart and PhonePe, which Walmart also owns, could become\u00a0$100 billion businesses. The companies could go public in a couple of years, the retailer said in early June.\nIn March, Flipkart launched a\u00a0UPI handle to enhance its digital payment offerings by adding the instant payments system. The company said at the time that the Flipkart UPI allows users to set up their own UPI handle for transactions, both online and offline, and both within and outside the Flipkart marketplace.\nPYMNTS Intelligence has found that 55% of consumers in India paid for their most recent digital\u00a0retail purchase with UPI. In addition, India accounts for 46% of the world\u2019s real-time payments and logs more digital transactions than any other nation, according to the \u201c2023 Global Digital Shopping Index: India Edition,\u201d a PYMNTS Intelligence and\u00a0Cybersource collaboration.\nThe post Flipkart Launches UPI\u00a0Payment App Offering Cashback Rewards appeared first on PYMNTS.com.", "date_published": "2024-06-26T11:31:12-04:00", "date_modified": "2024-06-26T11:31:12-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/Flipkart-cash-back-app.jpg", "tags": [ "APAC", "cash back", "credit", "Flipkart", "india", "international", "mobile apps", "News", "Payment Methods", "PYMNTS News", "Rewards", "super.money", "United Payments Interface", "UPI", "walmart", "What's Hot", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=1962968", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/starbucks-and-marriott-team-on-loyalty-rewards/", "title": "Starbucks and Marriott Team on Loyalty Rewards", "content_html": "Starbucks has teamed with Marriott\u2019s marketplace Bonvoy to offer benefits to loyalty members.
\nAs the companies said in a news release Tuesday (June 18), Marriott Bonvoy members and Starbucks Rewards U.S. members who link loyalty accounts will get the chance to earn points toward free food and beverages, as well as rewards at Marriott destinations.
\n\u201cMarriott Bonvoy\u2019s commitment to enriching moments for their customers aligns with Starbucks\u2019 customer promise to uplift the everyday, making them the perfect loyalty partner,\u201d said Kyndra Russell, senior vice president, North America chief marketing officer, Starbucks.
\n\u201cWe\u2019re continuing to develop our Starbucks Rewards program, and through this new collaboration, we are excited to offer members even more value and enhanced benefits through travel experiences,\u201d Russell added.
\nAs PYMNTS wrote in April, Starbucks\u2019 loyalty program was one of the bright spots in a recent earnings report that showed the coffee retailer seeing a drop in \u201coccasional customers.\u201d
\nStarbucks Rewards had seen an increase in 90-day active members in the U.S., totaling 32.8 million during the quarter, a 6% increase year-over year. The company also launched a loyalty partnership with Bank of America in February, offering cardholders and Starbucks Rewards members in the U.S. additional benefits by joining accounts.
\nIn another recent partnership, Starbucks teamed earlier with Grubhub to expand its order delivery options. The collaboration is rolling out this month to select markets in three states \u2014 Pennsylvania, Colorado and Illinois \u2014 but is expected to expand to all 50 states by August.
\n\u201cCustomer demand to get Starbucks delivered continues to increase, as evidenced by double-digit growth in the U.S. delivery business this past quarter, indicating that our customers continue to want convenience in their everyday lives,\u201d Meg Mathes, vice president of digital experiences at Starbucks, said in a news release.
\nElsewhere on the rewards front, recent research by PYMNTS Intelligence found that more consumers would use buy now, pay later (BNPL) programs if they knew there were loyalty rewards attached.
\n\u201cThe results showed that consumers increasingly opt for credit card installments for larger purchases because BNPL services lack common features of credit cards, such as reward programs and higher credit limits,\u201d PYMNTS wrote last week. \u201cAdditionally, consumers reported that BNPL is not as widely available in stores. The study found that 38% of consumers expressed a desire for BNPL to offer more available and higher-quality rewards.\u201d
\nFor all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
\nThe post Starbucks and Marriott Team on Loyalty Rewards appeared first on PYMNTS.com.
\n", "content_text": "Starbucks has teamed with Marriott\u2019s marketplace Bonvoy to offer benefits to loyalty members.\nAs the companies said in a news release Tuesday (June 18), Marriott Bonvoy members and Starbucks Rewards U.S. members who link loyalty accounts will get the chance to earn points toward free food and beverages, as well as rewards at Marriott destinations.\n\u201cMarriott Bonvoy\u2019s commitment to enriching moments for their customers aligns with Starbucks\u2019 customer promise to uplift the everyday, making them the perfect loyalty partner,\u201d said Kyndra Russell, senior vice president, North America chief marketing officer, Starbucks.\n\u201cWe\u2019re continuing to develop our Starbucks Rewards program, and through this new collaboration, we are excited to offer members even more value and enhanced benefits through travel experiences,\u201d Russell added.\nAs PYMNTS wrote in April, Starbucks\u2019 loyalty program was one of the bright spots in a recent earnings report that showed the coffee retailer seeing a drop in \u201coccasional customers.\u201d\nStarbucks Rewards had seen an increase in 90-day active members in the U.S., totaling 32.8 million during the quarter, a 6% increase year-over year. The company also launched a loyalty partnership with Bank of America in February, offering cardholders and Starbucks Rewards members in the U.S. additional benefits by joining accounts.\nIn another recent partnership, Starbucks teamed earlier with Grubhub to expand its order delivery options. The collaboration is rolling out this month to select markets in three states \u2014 Pennsylvania, Colorado and Illinois \u2014 but is expected to expand to all 50 states by August.\n\u201cCustomer demand to get Starbucks delivered continues to increase, as evidenced by double-digit growth in the U.S. delivery business this past quarter, indicating that our customers continue to want convenience in their everyday lives,\u201d Meg Mathes, vice president of digital experiences at Starbucks, said in a news release.\nElsewhere on the rewards front, recent research by PYMNTS Intelligence found that more consumers would use buy now, pay later (BNPL) programs if they knew there were loyalty rewards attached.\n\u201cThe results showed that consumers increasingly opt for credit card installments for larger purchases because BNPL services lack common features of credit cards, such as reward programs and higher credit limits,\u201d PYMNTS wrote last week. \u201cAdditionally, consumers reported that BNPL is not as widely available in stores. The study found that 38% of consumers expressed a desire for BNPL to offer more available and higher-quality rewards.\u201d\nFor all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.\nThe post Starbucks and Marriott Team on Loyalty Rewards appeared first on PYMNTS.com.", "date_published": "2024-06-18T15:57:22-04:00", "date_modified": "2024-06-18T15:57:22-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2022/10/Starbucks.jpg", "tags": [ "food and beverages", "loyalty", "loyalty programs", "loyalty rewards", "Marriott", "Marriott Bonvoy", "News", "partnerships", "PYMNTS News", "QSRs", "quick service restaurants", "Rewards", "rewards programs", "starbucks", "travel", "What's Hot", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=1955890", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/insomnia-cookies-moves-repeat-treats-with-data-driven-loyalty/", "title": "Insomnia Cookies Moves From Indulgence to Repeat Treats With Data-Driven Loyalty", "content_html": "Cookies might seem like the ideal business.
\nThey seem insulated from the vagaries of inflation and economic headwinds. Who doesn\u2019t crave an indulgence here or there \u2014 a late-night snack that, delivered to one\u2019s door, offsets the pressures of the workday?
\nIn many ways, cookies are an ideal business, one that inspires loyal customers. But even they need a healthy reminder now and then. As Insomnia Cookies Chief Marketing Officer Tom Carusona told PYMNTS as part of the \u201cBetter Data, Better Outcomes\u201d series sponsored by\u00a0Banyan, the company\u2019s latest iteration of its rewards program is designed to keep customers loyal, as repeat buyers, online and offline.
\n\u201cAs companies scale, and as media becomes much more distributed, it\u2019s important to try and build as deep of a connection with your customers as possible \u2026 to make sure they feel embraced by the brand that they love,\u201d Carusona said.
\nThat\u2019s easier said than done in the age of the distracted consumer, where we\u2019re all on the receiving end of a constant stream of texts, emails, pop-up ads, and TikTok and Instagram feeds. What works for one customer \u2014 a text message, for example \u2014 might not work for another customer, who might be incentivized instead by a video feed in-store.
\nThe challenge \u2014 and opportunity \u2014 in cementing loyalty becomes even more complex when companies such as Insomnia Cookies operate across digital and brick-and-mortar channels, with delivery in the mix too. Since its founding two decades ago in a dorm room at the University of Pennsylvania, Insomnia Cookies has grown to more than 280 locations across the United States, and it established a presence in the United Kingdom and Canada last year. Many of the company\u2019s stores are located near or in college campuses and cities, satisfying the collective sweet tooths of students and other night owls, with a sweet spot demographic among 18- to 24-year-olds.
\nEarlier this month, the firm announced the launch of its new loyalty program, Insomnia Rewards, enabling consumers to create accounts, as well as earn and redeem points online or in-store for baked goods and ice cream.
\nAs Carusona noted to PYMNTS, the latest iteration represents a broadening of its loyalty program that had been geared toward consumers making purchases through the company\u2019s online channels.
\n\u201cWith our new program, we actually have the ability to earn and redeem in our stores,\u201d he said.
\nThe cross-channel efforts, and data that comes alongside those purchases, helps inform Insomnia with what Carusona termed a \u201cfull view of the customer\u201d and how they use delivery, walk into a physical store or use order-ahead options.
\nSince the program is less than a month old, he said, \u201cwe\u2019re just getting warmed up \u2014 to connect the dots and enable better customer experiences.\u201d
\nThe app represents the most natural conduit to an optimal customer experience \u2014 for speedy transactions and building loyalty, Carusona said.
\n\u201cIf you\u2019re walking into a store, you pull up the app, and if there\u2019s a reward in there, you can add it to your order, scan it with the barcode, and then redeem right on site,\u201d he said. \u201cIf you\u2019re not redeeming right away, you could just scan and bank those points.\u201d
\nThe data will also help crystallize a long-term trend of repeat buying, moving cookies beyond a simple indulgence toward a gifting occasion, for example. Customers could get friends and family 12-cookie boxes for special occasions and parties, Carusona said. Upcoming features might involve push notifications based on anniversaries or holidays.
\nAsked by PYMNTS about the preferred payment modalities, Carusona said that credit cards remain a key method embraced by Insomnia\u2019s younger consumers. The company has also been working with select universities so that meal plan balances can be used to buy Insomnia\u2019s baked goods and deliveries.
\n\u201cWe\u2019re excited to finally have an experience that is much better for our consumers,\u201d he said. \u201cIt\u2019s going to be faster, it\u2019s going to be more value, and it\u2019s going to create a deeper emotional bond. That\u2019s what we\u2019re trying to do. One of our big goals is to create a community of ‘Insomniacs.’ We\u2019re kind of a cult brand, and we want to make sure that our customers feel that they\u2019re getting love from us, not just from cookies but from all these different channels. So, I\u2019m excited that we\u2019re finally moving in the right direction, and I can\u2019t wait to see the results.\u201d
\nFor all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
\nThe post Insomnia Cookies Moves From Indulgence to Repeat Treats With Data-Driven Loyalty appeared first on PYMNTS.com.
\n", "content_text": "Cookies might seem like the ideal business.\nThey seem insulated from the vagaries of inflation and economic headwinds. Who doesn\u2019t crave an indulgence here or there \u2014 a late-night snack that, delivered to one\u2019s door, offsets the pressures of the workday?\nIn many ways, cookies are an ideal business, one that inspires loyal customers. But even they need a healthy reminder now and then. As Insomnia Cookies Chief Marketing Officer Tom Carusona told PYMNTS as part of the \u201cBetter Data, Better Outcomes\u201d series sponsored by\u00a0Banyan, the company\u2019s latest iteration of its rewards program is designed to keep customers loyal, as repeat buyers, online and offline.\n\u201cAs companies scale, and as media becomes much more distributed, it\u2019s important to try and build as deep of a connection with your customers as possible \u2026 to make sure they feel embraced by the brand that they love,\u201d Carusona said.\nThat\u2019s easier said than done in the age of the distracted consumer, where we\u2019re all on the receiving end of a constant stream of texts, emails, pop-up ads, and TikTok and Instagram feeds. What works for one customer \u2014 a text message, for example \u2014 might not work for another customer, who might be incentivized instead by a video feed in-store.\nOmnichannel Presence\nThe challenge \u2014 and opportunity \u2014 in cementing loyalty becomes even more complex when companies such as Insomnia Cookies operate across digital and brick-and-mortar channels, with delivery in the mix too. Since its founding two decades ago in a dorm room at the University of Pennsylvania, Insomnia Cookies has grown to more than 280 locations across the United States, and it established a presence in the United Kingdom and Canada last year. Many of the company\u2019s stores are located near or in college campuses and cities, satisfying the collective sweet tooths of students and other night owls, with a sweet spot demographic among 18- to 24-year-olds.\nEarlier this month, the firm announced the launch of its new loyalty program, Insomnia Rewards, enabling consumers to create accounts, as well as earn and redeem points online or in-store for baked goods and ice cream.\nAs Carusona noted to PYMNTS, the latest iteration represents a broadening of its loyalty program that had been geared toward consumers making purchases through the company\u2019s online channels.\n\u201cWith our new program, we actually have the ability to earn and redeem in our stores,\u201d he said.\nThe cross-channel efforts, and data that comes alongside those purchases, helps inform Insomnia with what Carusona termed a \u201cfull view of the customer\u201d and how they use delivery, walk into a physical store or use order-ahead options.\nSince the program is less than a month old, he said, \u201cwe\u2019re just getting warmed up \u2014 to connect the dots and enable better customer experiences.\u201d\nThe app represents the most natural conduit to an optimal customer experience \u2014 for speedy transactions and building loyalty, Carusona said.\n\u201cIf you\u2019re walking into a store, you pull up the app, and if there\u2019s a reward in there, you can add it to your order, scan it with the barcode, and then redeem right on site,\u201d he said. \u201cIf you\u2019re not redeeming right away, you could just scan and bank those points.\u201d\nThe data will also help crystallize a long-term trend of repeat buying, moving cookies beyond a simple indulgence toward a gifting occasion, for example. Customers could get friends and family 12-cookie boxes for special occasions and parties, Carusona said. Upcoming features might involve push notifications based on anniversaries or holidays.\nAsked by PYMNTS about the preferred payment modalities, Carusona said that credit cards remain a key method embraced by Insomnia\u2019s younger consumers. The company has also been working with select universities so that meal plan balances can be used to buy Insomnia\u2019s baked goods and deliveries.\n\u201cWe\u2019re excited to finally have an experience that is much better for our consumers,\u201d he said. \u201cIt\u2019s going to be faster, it\u2019s going to be more value, and it\u2019s going to create a deeper emotional bond. That\u2019s what we\u2019re trying to do. One of our big goals is to create a community of ‘Insomniacs.’ We\u2019re kind of a cult brand, and we want to make sure that our customers feel that they\u2019re getting love from us, not just from cookies but from all these different channels. So, I\u2019m excited that we\u2019re finally moving in the right direction, and I can\u2019t wait to see the results.\u201d\nFor all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.\nThe post Insomnia Cookies Moves From Indulgence to Repeat Treats With Data-Driven Loyalty appeared first on PYMNTS.com.", "date_published": "2024-06-07T04:02:00-04:00", "date_modified": "2024-06-07T09:08:18-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/Insomnia-Cookies-loyalty-rewards.jpg", "tags": [ "data", "delivery", "ecommerce", "Featured News", "Insomnia Cookies", "Insomnia Rewards", "loyalty rewards", "News", "omnichannel", "PYMNTS News", "pymnts tv", "Retail", "Tom Carusona", "video", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=1954640", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/high-income-shoppers-seek-store-specific-card-linked-rewards/", "title": "High-Income Shoppers Seek Store-Specific Card-Linked Rewards \u00a0", "content_html": "For shoppers with the most cash to burn, PYMNTS Intelligence data reveal, store-specific card-linked rewards go the longest way toward driving spending.
\nThe report \u201cCard-Linked Offer Growth Hinges on First-Time Users,\u201d a PYMNTS Intelligence and Banyan collaboration, drew from a February survey of more than 2,100 U.S. consumers to better understand how and why they started using card-linked offers.
\nThe results revealed that 41% of consumers who make more than $100,000 a year prefer to earn rewards on overall spending at a specific store, while only 18% prefer discounts on specific products, 30% are indifferent and 11% are unsure.
\n
These figures showed that higher-income shoppers are likelier than the average consumer to want store-specific rewards, as only 37% of the sample overall exhibited the same preference.
\nThe study also found that younger consumers \u2014 namely, Generation Z shoppers, millennials and bridge millennials \u2014 were disproportionately likely to want store-specific rewards. As such, by offering card-linked rewards, retailers have a good chance of winning the spending of wealthier and younger shoppers.
\nConversely, there may be drawbacks for retailers in offering card-linked rewards across their offerings rather than focusing on item-specific perks.
\n\u201cI think\u00a0card-linked offers have been a rather blunt instrument in a retailer\u2019s marketing toolkit,\u201d\u00a0Jehan Luth, CEO of Banyan, told PYMNTS in a 2022 interview. \u201cOne of the biggest reasons it\u2019s a blunt instrument is because as a retailer, I cannot drive traffic to certain items. Instead of traditional loyalty offerings that may not be consumer-personalized, the overlaying of SKU-level data or item-level data in rewards and offers makes card-linked offers a much more versatile and powerful tool in the toolkit for retailers.\u201d
\nThe space may be due for a change soon, as the Consumer Financial Protection Bureau (CFPB) investigates the way that credit card rewards programs are designed following a rise in consumer complaints about such programs.
\nThe post High-Income Shoppers Seek Store-Specific Card-Linked Rewards \u00a0 appeared first on PYMNTS.com.
\n", "content_text": "For shoppers with the most cash to burn, PYMNTS Intelligence data reveal, store-specific card-linked rewards go the longest way toward driving spending.\nBy the Numbers\nThe report \u201cCard-Linked Offer Growth Hinges on First-Time Users,\u201d a PYMNTS Intelligence and Banyan collaboration, drew from a February survey of more than 2,100 U.S. consumers to better understand how and why they started using card-linked offers.\nThe results revealed that 41% of consumers who make more than $100,000 a year prefer to earn rewards on overall spending at a specific store, while only 18% prefer discounts on specific products, 30% are indifferent and 11% are unsure.\n\nThese figures showed that higher-income shoppers are likelier than the average consumer to want store-specific rewards, as only 37% of the sample overall exhibited the same preference.\nThe study also found that younger consumers \u2014 namely, Generation Z shoppers, millennials and bridge millennials \u2014 were disproportionately likely to want store-specific rewards. As such, by offering card-linked rewards, retailers have a good chance of winning the spending of wealthier and younger shoppers.\nOn the Other Hand\nConversely, there may be drawbacks for retailers in offering card-linked rewards across their offerings rather than focusing on item-specific perks.\n\u201cI think\u00a0card-linked offers have been a rather blunt instrument in a retailer\u2019s marketing toolkit,\u201d\u00a0Jehan Luth, CEO of Banyan, told PYMNTS in a 2022 interview. \u201cOne of the biggest reasons it\u2019s a blunt instrument is because as a retailer, I cannot drive traffic to certain items. Instead of traditional loyalty offerings that may not be consumer-personalized, the overlaying of SKU-level data or item-level data in rewards and offers makes card-linked offers a much more versatile and powerful tool in the toolkit for retailers.\u201d\nThe space may be due for a change soon, as the Consumer Financial Protection Bureau (CFPB) investigates the way that credit card rewards programs are designed following a rise in consumer complaints about such programs.\nThe post High-Income Shoppers Seek Store-Specific Card-Linked Rewards \u00a0 appeared first on PYMNTS.com.", "date_published": "2024-06-04T16:10:17-04:00", "date_modified": "2024-06-04T16:10:17-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/credit-cards-rewards-retail.jpg", "tags": [ "card payments", "Card-Linked Offer Growth Hinges on First-Time Users", "consumer insights", "consumer preferences", "credit card payments", "credit card rewards", "credit cards", "loyalty", "News", "Payment Methods", "PYMNTS Intelligence", "PYMNTS News", "Retail", "Rewards", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=1953128", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/money-magic-how-data-driven-rewards-are-transforming-digital-payments/", "title": "Money Magic: How Data-Driven Rewards Are Transforming Digital Payments", "content_html": "A payment is never just a payment. Increasingly, it is a gateway into a lifelong customer relationship.
\nAnd with the recent trend across the payments landscape of financial services firms like\u00a0JPMorgan Chase and\u00a0PayPal creating their own ad networks that use\u00a0data from user purchases, the integration of payment systems and the use of personalized data to enhance customer experience and drive loyalty is top of mind for companies looking to establish a competitive moat of repeat business.
\nThat\u2019s because, in the evolving digital and connected economy, the integration of payment systems and the activation of personalized data are no longer optional \u2014 they are essential for unlocking the full potential of payments and maximizing customer lifetime value.
\nUnintegrated payments, after all, are standalone transactions that lack connectivity with other business processes and data systems. These disjointed payments fail to provide businesses with the crucial insights needed to enhance customer experience and streamline operations. Without integration, payment data remains isolated, preventing businesses from understanding consumer behavior, preferences and spending patterns.
\nDriving offers to customers inside various ecosystems means using data, and accepting the digital payments that provide that data, in the right way. Effective personalization goes beyond addressing customers by their names; it involves understanding their preferences, anticipating their needs and providing relevant offers and rewards seamlessly tailored to distinct behaviors.
\nAnd leveraging payments data for ongoing personalization doesn\u2019t just have its place in the consumer payments realm. The principles of integrated payments and personalized data, as well as the value of rewards and benefits, can increasingly be applied to B2B payments and operations.
\nSee also:\u00a0The Trickledown Consumerization of B2B Payments Helps Firms Win Business
\nBy consolidating payment data with other customer information, businesses can gain valuable insights into purchasing behaviors, enabling personalized marketing and even tailored offers.
\n\u201cGiven the high correlation of\u00a0customer satisfaction to the payment experience \u2026 Whenever there\u2019s a transfer of payment or money, there\u2019s an opportunity to enhance [the process] and drive a better customer experience for consumers as well as businesses,\u201d Wally Mlynarski, head of merchant solutions and receivables at\u00a0Bank of America, told PYMNTS.
\nThe inclusion of rewards and benefits not only incentivizes timely payments and loyalty but also can add significant value to B2B transactions. By embracing these advancements, B2B businesses can improve efficiency, foster stronger partnerships and scale their operations more effectively.
\n\u201cIn a B2B business, the\u00a0finance function itself is part of the customer experience,\u201d\u00a0Aanchal Kochhar, head of product at\u00a0Capital One Trade Credit, told PYMNTS. \u201cYou can delight customers and capture more customers when underwriting is seamless, the credit process is seamless, and how money flows is seamless and with less error. There is a lot of growth potential.\u201d
\nBy integrating payment systems with additional services like financing options, supplier-side businesses can provide more value to their clients, making their offerings more attractive, while offering rewards such as early payment discounts can incentivize buyers to pay invoices sooner, improving supplier cash flow.
\nAutomating payment processes and linking them with other systems also helps minimize manual entry, which in turn reduces errors and saves time for firms, boosting their operational efficiency and leverage.
\nRead more: 15 Experts Explain the Strategic Side of Payments Modernization
\nData \u2014 especially user-permissioned, receipt-level data \u2014 will have the power to change\u00a0the way business\u00a0is done,\u00a0Banyan President\u00a0Alpesh Chokshi told PYMNTS in a discussion posted Monday (June 3).
\nWhile the traditional value proposition of payment systems focused primarily on transaction speed, security and cost, the modern value calculus includes rewards and benefits as crucial elements that influence payment acceptance decisions for both smaller firms and enterprise businesses.
\nFor small businesses, integrated payment systems with built-in rewards and loyalty programs can be game changers. These features help attract and retain customers in competitive markets by allowing firms to offer personalized discounts, track customer preferences and engage customers through loyalty rewards, thereby driving repeat business and increasing lifetime value.
\nLarger enterprises benefit from integrated payment systems by leveraging extensive customer data to drive sophisticated loyalty programs and personalized marketing strategies. These businesses can analyze vast amounts of data to identify trends, segment their customer base and deliver highly personalized experiences at scale.
\n\u201cWe talk about our loyalty program not as a cost center, but as a profit center to the business,\u201d Rite Aid Chief Marketing Officer\u00a0Jeanniey Walden told PYMNTS.
\nIntegrated payments and the strategic use of personalized data are also pivotal in scaling digital payments.
\nBy offering rewards and benefits, businesses can encourage the adoption of digital payment methods, which are more efficient and secure than traditional payment options. This shift not only reduces operational costs but also provides a treasure trove of data that can be used to further refine personalization strategies and enhance customer loyalty.
\nThe post Money Magic: How Data-Driven Rewards Are Transforming Digital Payments appeared first on PYMNTS.com.
\n", "content_text": "A payment is never just a payment. Increasingly, it is a gateway into a lifelong customer relationship.\nAnd with the recent trend across the payments landscape of financial services firms like\u00a0JPMorgan Chase and\u00a0PayPal creating their own ad networks that use\u00a0data from user purchases, the integration of payment systems and the use of personalized data to enhance customer experience and drive loyalty is top of mind for companies looking to establish a competitive moat of repeat business.\nThat\u2019s because, in the evolving digital and connected economy, the integration of payment systems and the activation of personalized data are no longer optional \u2014 they are essential for unlocking the full potential of payments and maximizing customer lifetime value.\nUnintegrated payments, after all, are standalone transactions that lack connectivity with other business processes and data systems. These disjointed payments fail to provide businesses with the crucial insights needed to enhance customer experience and streamline operations. Without integration, payment data remains isolated, preventing businesses from understanding consumer behavior, preferences and spending patterns.\nDriving offers to customers inside various ecosystems means using data, and accepting the digital payments that provide that data, in the right way. Effective personalization goes beyond addressing customers by their names; it involves understanding their preferences, anticipating their needs and providing relevant offers and rewards seamlessly tailored to distinct behaviors.\nAnd leveraging payments data for ongoing personalization doesn\u2019t just have its place in the consumer payments realm. The principles of integrated payments and personalized data, as well as the value of rewards and benefits, can increasingly be applied to B2B payments and operations.\nSee also:\u00a0The Trickledown Consumerization of B2B Payments Helps Firms Win Business\nUnlocking Better Business Relationships\nBy consolidating payment data with other customer information, businesses can gain valuable insights into purchasing behaviors, enabling personalized marketing and even tailored offers.\n\u201cGiven the high correlation of\u00a0customer satisfaction to the payment experience \u2026 Whenever there\u2019s a transfer of payment or money, there\u2019s an opportunity to enhance [the process] and drive a better customer experience for consumers as well as businesses,\u201d Wally Mlynarski, head of merchant solutions and receivables at\u00a0Bank of America, told PYMNTS.\nThe inclusion of rewards and benefits not only incentivizes timely payments and loyalty but also can add significant value to B2B transactions. By embracing these advancements, B2B businesses can improve efficiency, foster stronger partnerships and scale their operations more effectively.\n\u201cIn a B2B business, the\u00a0finance function itself is part of the customer experience,\u201d\u00a0Aanchal Kochhar, head of product at\u00a0Capital One Trade Credit, told PYMNTS. \u201cYou can delight customers and capture more customers when underwriting is seamless, the credit process is seamless, and how money flows is seamless and with less error. There is a lot of growth potential.\u201d\nBy integrating payment systems with additional services like financing options, supplier-side businesses can provide more value to their clients, making their offerings more attractive, while offering rewards such as early payment discounts can incentivize buyers to pay invoices sooner, improving supplier cash flow.\nAutomating payment processes and linking them with other systems also helps minimize manual entry, which in turn reduces errors and saves time for firms, boosting their operational efficiency and leverage.\nRead more: 15 Experts Explain the Strategic Side of Payments Modernization\nData \u2014 especially user-permissioned, receipt-level data \u2014 will have the power to change\u00a0the way business\u00a0is done,\u00a0Banyan President\u00a0Alpesh Chokshi told PYMNTS in a discussion posted Monday (June 3).\nWhile the traditional value proposition of payment systems focused primarily on transaction speed, security and cost, the modern value calculus includes rewards and benefits as crucial elements that influence payment acceptance decisions for both smaller firms and enterprise businesses.\nFor small businesses, integrated payment systems with built-in rewards and loyalty programs can be game changers. These features help attract and retain customers in competitive markets by allowing firms to offer personalized discounts, track customer preferences and engage customers through loyalty rewards, thereby driving repeat business and increasing lifetime value.\nLarger enterprises benefit from integrated payment systems by leveraging extensive customer data to drive sophisticated loyalty programs and personalized marketing strategies. These businesses can analyze vast amounts of data to identify trends, segment their customer base and deliver highly personalized experiences at scale.\n\u201cWe talk about our loyalty program not as a cost center, but as a profit center to the business,\u201d Rite Aid Chief Marketing Officer\u00a0Jeanniey Walden told PYMNTS.\nIntegrated payments and the strategic use of personalized data are also pivotal in scaling digital payments.\nBy offering rewards and benefits, businesses can encourage the adoption of digital payment methods, which are more efficient and secure than traditional payment options. This shift not only reduces operational costs but also provides a treasure trove of data that can be used to further refine personalization strategies and enhance customer loyalty.\nThe post Money Magic: How Data-Driven Rewards Are Transforming Digital Payments appeared first on PYMNTS.com.", "date_published": "2024-06-03T19:06:29-04:00", "date_modified": "2024-06-03T22:24:38-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/card-payments-rewards-loyalty.jpg", "tags": [ "B2B", "B2B Payments", "card data", "card payments", "card rewards", "commercial payments", "Connected Economy", "credit cards", "data analysis", "Digital Payments", "digital transformation", "loyalty", "News", "Payment Methods", "payments innovation", "personalization", "PYMNTS News", "Rewards", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=1949884", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/new-data-card-linked-offers-improve-relevance-and-value/", "title": "New Data: Card-Linked Offers Improve Relevance and Value", "content_html": "![\"\"](\"https://www.pymnts.com/wp-content/uploads/2024/05/Download-Banyan-Card-Linked-Offer-Usage-Over-Time-May-2024.jpg\")
Consumers who use card-linked shopping offers, which provide special savings or rewards attached to a merchant or product, return for more \u2014 most do. But what about the 21% of past users who never return? PYMNTS Intelligence finds that if those who used these offers in the past came back, more than half of U.S. cardholders would be users.![\"44%:](\"https://www.pymnts.com/wp-content/uploads/2024/05/Banyan-Card-Linked-Offer-Usage-Over-Time-May-2024-Stat-1.jpg\")
What do these consumers say keeps them from returning to card-linked offers? Irrelevant offers and unappealing deals.
\nBut the naysayers should give these offers another look.
\nThese are just some of the findings detailed in \u201cCard-Linked Offer Usage Over Time,\u201d a PYMNTS Intelligence and Banyan collaboration. The report examines the future growth dynamics of card-linked offers. It draws on insights from a survey of 2,108 U.S. consumers conducted from March 20 to April 6, exploring how and why they started using these offers.
\n![\"87%:](\"https://www.pymnts.com/wp-content/uploads/2024/05/Banyan-Card-Linked-Offer-Usage-Over-Time-May-2024-Stat-2.jpg\")
Other key findings in the report include the following.
Relevancy and savings are key to drawing consumers in. Data shows that for 22% of former users, a lack of relevant offers is not just a deterrent for using cards but the key reason they do not return. These consumers\u2019 perceptions do not match how these offers have changed.
\n![\"11%:](\"https://www.pymnts.com/wp-content/uploads/2024/05/Banyan-Card-Linked-Offer-Usage-Over-Time-May-2024-Stat-3.jpg\")
Nearly two-thirds of card-linked offer users are more satisfied with the relevancy of the offers they received this year than the previous year. Current users are noticing more improvements in their offer programs. But the same is not true for former users, who remain outside of the programs. Providers that target past users and position how the programs have improved could have a competitive advantage.
Most card-linked offer users will likely use them again. However, 63% of cardholders have not received these offers in the last year or noticed if they have. Here, providers have missed out on an opportunity. The report explores which past users are more likely to return.
\nProviders must target consumers who have never used these offers and reengage previous users to grow usage. Download the report to learn more about how card-linked offer providers can deliver a one-two punch to unlock the next wave of growth.
\nThe post New Data: Card-Linked Offers Improve Relevance and Value appeared first on PYMNTS.com.
\n", "content_text": "Consumers who use card-linked shopping offers, which provide special savings or rewards attached to a merchant or product, return for more \u2014 most do. But what about the 21% of past users who never return? PYMNTS Intelligence finds that if those who used these offers in the past came back, more than half of U.S. cardholders would be users.\nWhat do these consumers say keeps them from returning to card-linked offers? Irrelevant offers and unappealing deals.\nBut the naysayers should give these offers another look.\nThese are just some of the findings detailed in \u201cCard-Linked Offer Usage Over Time,\u201d a PYMNTS Intelligence and Banyan collaboration. The report examines the future growth dynamics of card-linked offers. It draws on insights from a survey of 2,108 U.S. consumers conducted from March 20 to April 6, exploring how and why they started using these offers.\nOther key findings in the report include the following.\nFormer users view the lack of relevant offers as the key reason they have not yet returned.\nRelevancy and savings are key to drawing consumers in. Data shows that for 22% of former users, a lack of relevant offers is not just a deterrent for using cards but the key reason they do not return. These consumers\u2019 perceptions do not match how these offers have changed.\nCard-linked offers are becoming more attractive in areas consumers care about \u2014 relevancy and savings \u2014 if only former users would notice.\nNearly two-thirds of card-linked offer users are more satisfied with the relevancy of the offers they received this year than the previous year. Current users are noticing more improvements in their offer programs. But the same is not true for former users, who remain outside of the programs. Providers that target past users and position how the programs have improved could have a competitive advantage.\nMore than half of past users are at least somewhat likely to use the offers again in the future.\nMost card-linked offer users will likely use them again. However, 63% of cardholders have not received these offers in the last year or noticed if they have. Here, providers have missed out on an opportunity. The report explores which past users are more likely to return.\nProviders must target consumers who have never used these offers and reengage previous users to grow usage. Download the report to learn more about how card-linked offer providers can deliver a one-two punch to unlock the next wave of growth.\nThe post New Data: Card-Linked Offers Improve Relevance and Value appeared first on PYMNTS.com.", "date_published": "2024-05-29T04:02:15-04:00", "date_modified": "2024-05-29T13:31:22-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/05/card-linked-offers-consumer-credit-card-use.jpg", "tags": [ "Banyan", "Card Linked Offers", "Consumer Spending", "Featured News", "News", "PYMNTS Intelligence", "PYMNTS News", "PYMNTS Study", "rewards programs", "shopping", "Loyalty & Rewards" ] } ] }