Albany, NY -- (SBWire) -- 07/23/2014 --While loyalty programs likely do not lead to complete loyalty to a specific retailer, many consumers are likely to change their shopping habits in order to earn incentives. However, there is also a significant demand for more meaningful rewards and easier ways of earning them, suggesting that consumers see a lot of room for improvement in existing loyalty initiatives.
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Table of Content
Scope and Themes
What you need to know
Definition
Data sources
Consumer survey data
Direct marketing creative
Abbreviations
Terms
Executive Summary
Overview
The market
Figure 1: Actions taken to earn loyalty rewards, May 2014
Key players
The consumer
Loyalty programs key factor in determining where consumers shop
Figure 2: Factors influencing where consumers shop, May 2014
Action taken correlates to household size
Figure 3: Action taken to earn loyalty rewards - any, by household size, May 2014
More than four in 10 report frustration with loyalty programs
Figure 4: Frustrations with loyalty programs, May 2014
What we think
Issues and Insights
Does loyalty program participation translate to customer loyalty?
The issues
The implications
Central frustrations with loyalty programs
The issues
The implications
Should retailers emphasize personalization or privacy?
The issues
The implications
Trend Applications
Trend: Many Mes
Trend: Return to the Experts
Trend: Why Buy
Market Drivers
Key points
Consumer spending trending upward since the recession
Figure 5: Consumer confidence and unemployment, 2000-14
Online shopping forecast to grow
Figure 6: US total online shopping sales, at current prices, 2009-19
Mobile apps improve the convenience of loyalty programs
Credit cards provide universal rewards to consumers
Figure 7: Rewards/affiliations with respondents' credit cards, by age, November 2012-December 2013
Leading Companies
Key points
Figure 8: Number of mentions of leading retailers May 2014
CVS
Walgreens
Kroger
Target
Amazon
Best Buy
Starbucks
Kohl’s
Walmart
Safeway
Innovations and Innovators
The North Face offers experiential awards
Figure 9: The North Face’s VIPeak rewards catalog, April 2014
Delicious Karma translates loyalty into charitable donations
Figure 10: Delicious Karma’s “Karma Challenge” page, April 2014
Birdback
Figure 11: Birdback homepage, April 2014
American Express lets loyalty members use points for Uber rides
Marketing Strategies
Loyalty programs that emphasize cost savings
Figure 12: Pier 1 Imports, fresh finds for your spring table, April 2014
Figure 13: Pier 1 Imports, make it an early spring with our candles, lanterns, and fragrances, February 2014
Figure 14: The Children’s place, loyalty member email campaign, April 2014
Loyalty programs that emphasize exclusivity
Figure 15: Banana Republic, cardmembers: add some color with exclusive savings!, January 2014
Figure 16: Sephora, VIB 15% off: early access event, April 2014
Loyalty programs with experiential rewards
Social Media
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Retailer Loyalty Programs US 2014: Global Region Industry Size, Share, Growth , Research Analysis and Opportunities
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