Loyalogy Consumer Study Finds That Retail Rewards Programs May Increase Shopper Spending By 33%

ASHEVILLE NC, OCTOBER 15 2014 – Loyalogy, leading provider of loyalty program analysis, data mining, reporting and consulting services, announced the results of its first annual U.S. study tracking consumer attitudes and behavior regarding retail rewards programs [CLICK HERE TO DOWNLOAD A PDF REPORT]

“This study provides clear evidence directly from consumers regarding the effectiveness of retail rewards programs and the importance of such programs to shoppers,” said Dennis Duffy, President of Loyalogy.

The study, based on detailed survey responses to 61 questions from 1,100 consumers from across the U.S., found that:

  • Consumers estimate an appealing retail rewards program would increase their spending rate with a particular retailer by an average of 33%.
  • Millennials in the study were especially motivated by retail rewards programs, reporting an expected spending increase of 41% as compared to the overall spending increase of 33%.
  • Nearly two-thirds of consumers (65%) report they would recommend a retailer more to others if that retailer offered an appealing rewards program.
  • 84% of consumers prefer a retail rewards program with a clearly-defined proposition in which they earn rewards based on total spending or number of purchases rather than a program built solely on periodic, surprise coupons or discounts.
    • 55% prefer a program that offers points based on spending which convert to reward dollars that may be spent with the retailer just like cash.
    • 29% prefer a program that is based upon number of purchases, such as buy ten items and get one free.
    • 16% prefer a program that offers surprise coupons/discounts from time to time.
  • Consumers desire a simple reward program enrollment process in the retail establishment and would prefer to supply additional personal information online after they have finished shopping and departed the retail environment.
  • Although consumer wallets are bulging with plastic cards, 60% of respondents stated that they don’t mind carrying a membership card for a rewards program if it’s necessary.
  • Consumers participate in an average of 8.1 retail rewards programs.
  • 73% of consumers find a single retail rewards program which spans multiple retail chains to be appealing.


The Loyalogy consumer research study was conducted through an online survey of U.S. consumers between the ages of 25 and 65 with household incomes of $75,000 or more. The respondents were selected from an online research panel provided by The Sample Network. The survey consisted of 61 questions in categories that include:

  • Participation rate in retail rewards programs in 12 retail categories:
    • Apparel
    • Footwear
    • Automotive Service, Repair & Tires
    • Home Improvement/Hardware
    • Electronics, Computers & Technology
    • General Merchandise Retailers
    • Jewelry/Accessories
    • Books
    • Pet Supplies
    • Garden Supplies, Plants & Accessories
    • Furniture
    • Sporting Goods
  • Relative appeal of 14 different reward program benefits.
  • Attitudes about 9 different statements regarding carrying membership cards, using a phone number as identifier and receiving promotional e-mail messages from rewards programs.
  • Attitudinal statements regarding the impact of rewards programs on behavior.
  • Demographic characteristics.