Integrated Solutions for Retailers
Monday, January 23, 2012
ACI Worldwide, a leading international provider of payment systems, recently released the results of a recent study of consumers in the U.S., which shows the majority of American consumers feel their loyalty programs deliver benefits that are important to them, a retention strategy that keeps customers from straying to the competition.
- The large majority of American consumers would likely choose a retailer over its competitor if they were members of the retailer's loyalty program.
- 71 percent feel their loyalty programs deliver benefits that are important to them.
- 84 percent of Americans are members of at least one retail loyalty program.
- Men are less likely to join as many loyalty schemes as women, with only 18% being members of more than three schemes, compared to 36% of women.
Compared to similar research released by ACI Worldwide previously, the results show a marked increase in the number of consumers who are members of loyalty schemes, up from 74 percent in December 2010 to 84 percent now. This increase tallies with an apparent increase in the influence of loyalty schemes with 84 percent of members likely to choose a retailer over its competitor if they were members of the retailer's loyalty program. Previously, nearly half (49%) of loyalty program members said that they never or rarely take advantage of loyalty program perks when shopping online.
"Considering four out of five Americans (84 percent) are members of at least one retail loyalty card program, this adds up to a big opportunity for retailers when executed correctly," said Rob Seward, Product Line Manager at ACI Worldwide. "Although it takes time to build a successful loyalty program, the payoff is significant – we are now seeing proof that loyalty schemes are resonating with consumers and creating customer loyalty."
The survey found women favor loyalty schemes more than men – with 91 percent of women having at least one loyalty scheme, compared to 77 percent of men. Men are also less likely to join as many loyalty schemes as women, with only 18% being members of more than three schemes, compared to 36% of women.
Women control $20T in annual consumer spending in the world—a figure likely to climb to $28T by 2014. Seward commented, "successful retailers understand the purchasing power of women and leverage loyalty programs to keep these lucrative customers coming back."
The study also revealed age plays a role in the level of consumer satisfaction with loyalty programs. In the 18-24 age group only 5% of members report that very few of their loyalty schemes deliver benefits that matter to them, but this increases to 27% of members over the age of 65.
"With this in mind, retailers need to look more closely at the benefits they are providing to their customers in this age group. The key to success is placing the customer experience at the center of a retailer's loyalty and rewards strategy. ACI is making it easy for retailers to integrate their loyalty and rewards programs so they can do what the programs were intended – create greater consumer loyalty," Seward said.
To find out more about ACI Retail Commerce Server, please visit www.aciworldwide.com/retailcommerceserver
About This Research
This survey was conducted by Research Now in December 2011 and January 2012 and researched 300 respondents in the US. The survey was conducted online.
About ACI Worldwide
ACI Worldwide powers electronic payments for more than 800 financial institutions, retailers and processors around the world, with its broad and integrated suite of electronic payment software. More than 90 billion times each year, ACI's solutions process consumer payments. On an average day, ACI software manages more than US$12T in wholesale payments, and for more than 160 organizations worldwide, ACI software helps to protect their customers from financial crime. For more information, visit www.aciworldwide.com or www.paymentsinsights.com.