![\"Consumers](\"https://www.pymnts.com/wp-content/uploads/2024/08/Consumers-using-mobile-wallets.png\")
The\u00a0Department of Transportation (DOT) has launched an inquiry into the rewards programs of the four largest U.S. airlines, saying it aims to protect customers from practices that are potentially unfair, deceptive or anticompetitive.
\nTransportation Secretary\u00a0Pete Buttigieg sent\u00a0letters\u00a0to\u00a0American Airlines,\u00a0Delta Air Lines,\u00a0Southwest Airlines and\u00a0United Airlines ordering them to provide information about their rewards programs, practices and policies, the DOT said in a Thursday (Sept. 5)\u00a0press release.
\nThe letters request information and documents relating to devaluation of earned rewards, hidden and dynamic pricing, extra fees and reduction in competition and choice, according to the release.
\nButtigieg said in the release that rewards programs bring real value to consumers and that Americans view their rewards points balances as part of their savings.
\n\u201cBut unlike a traditional savings account, these rewards are controlled by a company that can unilaterally change their value,\u201d Buttigieg said in the release. \u201cOur goal is to ensure consumers are getting the value that was promised to them, which means validating that these programs are transparent and fair.\u201d
\nConsumer Financial Protection Bureau (CFPB) Director\u00a0Rohit Chopra said in a Thursday\u00a0statement that the DOT\u2019s inquiry is a key step to prevent \u201cdeceptive devaluation tactics that can plague these alternative currencies held by tens of millions of families.\u201d
\n\u201cAirline valuations are increasingly driven by their points programs and lucrative partnerships with credit card companies, and Americans are paying high interest rates and fees to participate in these programs \u2014 yet these tempting points and rewards programs are often depreciated or changed with little notice,\u201d Chopra said in his statement.
\nReached for comment by PYMNTS, Southwest Airlines provided a statement saying its\u00a0Rapid Rewards program helps millions of customers meet their personal travel needs.
\n\u201cAt Southwest, we take great pride in our award-winning Rapid Rewards program, which includes flexible travel policies and unmatched availability of reward seats,\u201d the statement said. \u201cOur commitment to providing customers with Rapid Rewards points that never expire, regardless of how they\u2019re earned, has led us to have double the industry average of seats booked with points.\u201d
\nDelta Air Lines said in a statement emailed to PYMNTS that it received the DOT\u2019s inquiry and will respond accordingly.
\n\u201cOur members\u2019 loyalty means everything to us, and providing a meaningful rewards experience is the top priority within Delta\u2019s\u00a0SkyMiles program,\u201d the statement said.
\nAmerican Airlines and United Airlines referred PYMNTS to the trade association\u00a0Airlines for America (A4A) for comment.
\nA4A said in a statement emailed to PYMNTS that consumers have choice when selecting an airline, carriers want to reward travelers for their return business, and loyalty programs are a way for carriers to say \u201cthank you\u201d to travelers.
\n\u201cMillions of people enjoy being a part of various loyalty programs, which allow them to accumulate rewards to apply toward travel or other benefits,\u201d the A4A statement said. \u201cU.S. carriers are transparent about these programs, and policymakers should ensure that consumers can continue to be offered these important benefits.\u201d
\nIt was reported in December that the DOT was closely examining the frequent flyer programs of major U.S. airlines, aiming to identify potential deceptive or unfair practices.
\nThe post DOT Launches Inquiry Into Rewards Programs of 4 Airlines appeared first on PYMNTS.com.
\n", "content_text": "The\u00a0Department of Transportation (DOT) has launched an inquiry into the rewards programs of the four largest U.S. airlines, saying it aims to protect customers from practices that are potentially unfair, deceptive or anticompetitive.\nTransportation Secretary\u00a0Pete Buttigieg sent\u00a0letters\u00a0to\u00a0American Airlines,\u00a0Delta Air Lines,\u00a0Southwest Airlines and\u00a0United Airlines ordering them to provide information about their rewards programs, practices and policies, the DOT said in a Thursday (Sept. 5)\u00a0press release.\nThe letters request information and documents relating to devaluation of earned rewards, hidden and dynamic pricing, extra fees and reduction in competition and choice, according to the release.\nButtigieg said in the release that rewards programs bring real value to consumers and that Americans view their rewards points balances as part of their savings.\n\u201cBut unlike a traditional savings account, these rewards are controlled by a company that can unilaterally change their value,\u201d Buttigieg said in the release. \u201cOur goal is to ensure consumers are getting the value that was promised to them, which means validating that these programs are transparent and fair.\u201d\nConsumer Financial Protection Bureau (CFPB) Director\u00a0Rohit Chopra said in a Thursday\u00a0statement that the DOT\u2019s inquiry is a key step to prevent \u201cdeceptive devaluation tactics that can plague these alternative currencies held by tens of millions of families.\u201d\n\u201cAirline valuations are increasingly driven by their points programs and lucrative partnerships with credit card companies, and Americans are paying high interest rates and fees to participate in these programs \u2014 yet these tempting points and rewards programs are often depreciated or changed with little notice,\u201d Chopra said in his statement.\nReached for comment by PYMNTS, Southwest Airlines provided a statement saying its\u00a0Rapid Rewards program helps millions of customers meet their personal travel needs.\n\u201cAt Southwest, we take great pride in our award-winning Rapid Rewards program, which includes flexible travel policies and unmatched availability of reward seats,\u201d the statement said. \u201cOur commitment to providing customers with Rapid Rewards points that never expire, regardless of how they\u2019re earned, has led us to have double the industry average of seats booked with points.\u201d\nDelta Air Lines said in a statement emailed to PYMNTS that it received the DOT\u2019s inquiry and will respond accordingly.\n\u201cOur members\u2019 loyalty means everything to us, and providing a meaningful rewards experience is the top priority within Delta\u2019s\u00a0SkyMiles program,\u201d the statement said.\nAmerican Airlines and United Airlines referred PYMNTS to the trade association\u00a0Airlines for America (A4A) for comment.\nA4A said in a statement emailed to PYMNTS that consumers have choice when selecting an airline, carriers want to reward travelers for their return business, and loyalty programs are a way for carriers to say \u201cthank you\u201d to travelers.\n\u201cMillions of people enjoy being a part of various loyalty programs, which allow them to accumulate rewards to apply toward travel or other benefits,\u201d the A4A statement said. \u201cU.S. carriers are transparent about these programs, and policymakers should ensure that consumers can continue to be offered these important benefits.\u201d\nIt was reported in December that the DOT was closely examining the frequent flyer programs of major U.S. airlines, aiming to identify potential deceptive or unfair practices.\nThe post DOT Launches Inquiry Into Rewards Programs of 4 Airlines appeared first on PYMNTS.com.", "date_published": "2024-09-05T17:53:16-04:00", "date_modified": "2024-09-05T17:53:16-04:00", "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/2024/09/Airlines-rewards-travel-Department-of-Transportation.jpg", "tags": [ "airlines", "American Airlines", "credit", "Delta Air Lines", "Department of Transportation", "dot", "loyalty", "News", "PYMNTS News", "Rewards", "Southwest Airlines", "travel", "travel points", "travel programs", "United Airlines", "What's Hot", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=2077550", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/walmart-and-amazon-turn-to-restaurant-perks-to-drive-memberships/", "title": "Walmart and Amazon Turn to Fast Food to Sweeten Memberships", "content_html": "In recent months, retail giants Walmart and Amazon have been seizing on consumers\u2019 demand for digital restaurant ordering to drive engagement with their paid memberships, offering dining benefits to incentivize subscriptions.
\nWalmart recently announced a deal with Burger King, its first Walmart+ dining partnership, offering members of its paid retail subscription 25% off their digital order from the quick-service restaurant (QSR) every day. Plus, once a quarter beginning in September, Walmart+ members are offered one free Whopper with any purchase from the retailer.
\n\u201cThe inclusion of a Burger King benefit in our Walmart+ membership portfolio is exciting,\u201d Venessa Yates, senior vice president and general manager of Walmart+, said in a statement. \u201cWe consistently strive to offer benefits that focus on our members, aligning with our commitment to deliver undeniable value and convenience.\u201d
\nMeanwhile, Amazon announced months earlier that it was expanding its partnership with Grubhub to provide Prime members with free Grubhub+ subscriptions on an ongoing basis, where previously the partnership had only offered Prime customers limited-time subscriptions to the aggregator. The online retail giant also added the ability to access Grubhub on Amazon.com and the Amazon Shopping app.
\n\u201cWe\u2019re just trying to make it really simple for our members to not only find out about what value they have in their Prime membership, but also to actually benefit from it on monthly, weekly, daily basis \u2014 however it fits into their busy lives,\u201d Jamil Ghani, vice president of Amazon Prime,\u00a0told PYMNTS in an interview at the time.
\nThese moves come as the companies look to drive adoption of their paid memberships. PYMNTS Intelligence research finds that, as of July, more than two-thirds of United States consumers held Amazon Prime memberships, while as of June, only 30% were subscribed to Walmart+. Yet this latter figure marks a sharp increase from 23% a year earlier, suggesting that Walmart\u2019s efforts to drive subscription growth are paying off.
\nOverall, Amazon captures a larger portion of consumer spending than Walmart, per the latest edition of PYMNTS Intelligence\u2019s \u201cWhole Paycheck\u201d study, which estimates the two companies\u2019 market shares in various categories based on years of earnings reports as well as data from the U.S. Census Bureau and Bureau of Economic Analysis (BEA). The findings revealed that in Q2 Amazon seized a 3.5% of share consumers\u2019 spending to Walmart\u2019s 2.9%.
\nLooking to online ordering to drive engagement could help both companies drive up those shares, considering consumers\u2019 strong demand for digital restaurant options. The latest installment of PYMNTS Intelligence\u2019s annual \u201cHow the World Does Digital\u201d report reveals that consumers order from restaurant aggregators an average of 6.1 days per month. Plus, they order from restaurants\u2019 sites or apps an average of 6.4 days. Additionally, one-quarter of consumers orders from aggregators weekly, and a similar share does so from restaurants\u2019 sites or apps.
\nPlus, Amazon and Walmart stand to gain from the link between online shopping and digital ordering in consumers\u2019 daily routines. PYMNTS Intelligence findings reveal that, among the three-quarters of consumers who use connected devices to multitask while they shop, 30% do so to order from restaurants.
\nAs both Amazon and Walmart tap into the intersection of online shopping and digital dining, the addition of new membership perks could enhance consumer engagement, reflecting the growing integration of technology in shoppers\u2019 everyday habits.
\nThe post Walmart and Amazon Turn to Fast Food to Sweeten Memberships appeared first on PYMNTS.com.
\n", "content_text": "In recent months, retail giants Walmart and Amazon have been seizing on consumers\u2019 demand for digital restaurant ordering to drive engagement with their paid memberships, offering dining benefits to incentivize subscriptions.\nWalmart recently announced a deal with Burger King, its first Walmart+ dining partnership, offering members of its paid retail subscription 25% off their digital order from the quick-service restaurant (QSR) every day. Plus, once a quarter beginning in September, Walmart+ members are offered one free Whopper with any purchase from the retailer.\n\u201cThe inclusion of a Burger King benefit in our Walmart+ membership portfolio is exciting,\u201d Venessa Yates, senior vice president and general manager of Walmart+, said in a statement. \u201cWe consistently strive to offer benefits that focus on our members, aligning with our commitment to deliver undeniable value and convenience.\u201d\nMeanwhile, Amazon announced months earlier that it was expanding its partnership with Grubhub to provide Prime members with free Grubhub+ subscriptions on an ongoing basis, where previously the partnership had only offered Prime customers limited-time subscriptions to the aggregator. The online retail giant also added the ability to access Grubhub on Amazon.com and the Amazon Shopping app.\n\u201cWe\u2019re just trying to make it really simple for our members to not only find out about what value they have in their Prime membership, but also to actually benefit from it on monthly, weekly, daily basis \u2014 however it fits into their busy lives,\u201d Jamil Ghani, vice president of Amazon Prime,\u00a0told PYMNTS in an interview at the time.\nThese moves come as the companies look to drive adoption of their paid memberships. PYMNTS Intelligence research finds that, as of July, more than two-thirds of United States consumers held Amazon Prime memberships, while as of June, only 30% were subscribed to Walmart+. Yet this latter figure marks a sharp increase from 23% a year earlier, suggesting that Walmart\u2019s efforts to drive subscription growth are paying off.\nOverall, Amazon captures a larger portion of consumer spending than Walmart, per the latest edition of PYMNTS Intelligence\u2019s \u201cWhole Paycheck\u201d study, which estimates the two companies\u2019 market shares in various categories based on years of earnings reports as well as data from the U.S. Census Bureau and Bureau of Economic Analysis (BEA). The findings revealed that in Q2 Amazon seized a 3.5% of share consumers\u2019 spending to Walmart\u2019s 2.9%.\nLooking to online ordering to drive engagement could help both companies drive up those shares, considering consumers\u2019 strong demand for digital restaurant options. The latest installment of PYMNTS Intelligence\u2019s annual \u201cHow the World Does Digital\u201d report reveals that consumers order from restaurant aggregators an average of 6.1 days per month. Plus, they order from restaurants\u2019 sites or apps an average of 6.4 days. Additionally, one-quarter of consumers orders from aggregators weekly, and a similar share does so from restaurants\u2019 sites or apps.\nPlus, Amazon and Walmart stand to gain from the link between online shopping and digital ordering in consumers\u2019 daily routines. PYMNTS Intelligence findings reveal that, among the three-quarters of consumers who use connected devices to multitask while they shop, 30% do so to order from restaurants.\nAs both Amazon and Walmart tap into the intersection of online shopping and digital dining, the addition of new membership perks could enhance consumer engagement, reflecting the growing integration of technology in shoppers\u2019 everyday habits.\nThe post Walmart and Amazon Turn to Fast Food to Sweeten Memberships appeared first on PYMNTS.com.", "date_published": "2024-08-29T12:46:47-04:00", "date_modified": "2024-08-29T22:18:21-04:00", "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/2024/08/Walmart-Amazon-restaurants-perks.jpg", "tags": [ "Amazon", "Burger King", "Commerce", "Connected Economy", "delivery", "ecommerce", "Featured News", "food and beverages", "grubhub", "How the World Does Digital", "News", "partnerships", "PYMNTS Intelligence", "PYMNTS News", "Restaurants", "Retail", "walmart", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=2050962", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/cost-conscious-consumers-demand-discounts-fuels-digital-growth-across-retail/", "title": "Cost-Conscious Consumers\u2019 Demand for Discounts Fuels Digital Growth Across Retail", "content_html": "As consumers\u2019 ongoing financial concerns drive them to seek deals and promotions, brands across retail categories are seeing increased engagement with their loyalty programs.
\nSportswear brand Under Armour shared on a call with analysts Thursday (Aug. 8) discussing its first-quarter fiscal 2025 earnings results that it is seeing quick adoption of its relatively new loyalty program, UA Rewards.
\n\u201cOur loyalty program is \u2026 giving us an added boost in realizing improved long-term growth, profitability and higher brand engagement,\u201d President and CEO Kevin Plank said during the call. \u201cWith less than a year under our belts in North America, UA Rewards has grown quickly, and its performance has been a positive contributor. The program has nearly 5 million members and is growing month by month.\u201d
\nPlank added that roughly 50% of the members joining are new customers.
\nThe growth comes as the gap between the economic sentiment \u2014 and the spending power \u2014 of high-income and low-income consumers widens. Amid this pressure, consumers are looking for digital tools that will help them save on cost. The study \u201c2024 Global Digital Shopping Index: U.S. Edition,\u201d a PYMNTS Intelligence collaboration with Visa Acceptance Solutions, found that 75% of retail shoppers expect digital coupons for in-store and online shopping, and 74% expect relevant promo codes.
\nAgainst this backdrop, beauty retailers and brands, too, are seeing increased demands for their loyalty offerings. Sally Beauty, for instance, noted on its third-quarter fiscal 2024 earnings call Friday (Aug. 9) that in the three-month period, 78% of sales in the U.S. and Canada came from its loyalty program members, which held a member base of 16 million users.
\n\u201cAdditionally, our Elite loyalty members who represent our most valuable and frequent shoppers grew by 6% year over year,\u201d President and CEO Denise Paulonis noted on the call.
\nE.l.f. Beauty, for its part, noted on its own first-quarter fiscal 2025 earnings call Thursday that loyalty program enrollment rose 30% year over year and the program now has more than 5 million members.
\n\u201cOur Beauty Squad loyalists have higher average order values, purchase more frequently, have stronger retention rates and are a rich source of first-party data,\u201d Senior Vice President and Chief Financial Officer Mandy Fields said during the call.
\nFood service brands are similarly noting increased demand for their loyalty programs. For instance, Krispy Kreme President and CEO Josh Charlesworth said on an earnings call Thursday that the sweet treats brand\u2019s loyalty program\u2019s relaunch in April contributed to 22% digital sales growth year over year and membership is up 27%, expanding the company\u2019s ability to provide personalized offers. PYMNTS Intelligence research found that 83% of consumers are interested in receiving such offers.
\nSimilarly, fast-casual chain Noodles & Company shared on a call discussing its second-quarter earnings results Wednesday (Aug. 7) that 26% of sales came from loyalty program members and that these customers spend twice as much as those who are not members. Plus, in the quarter, traffic among loyalty program members rose 5% year over year.
\nBeyond retail, loyalty programs are also driving increased engagement in the live events space, as ticket resale platform Vivid Seats noted in its second-quarter earnings call Tuesday (Aug. 6).
\n\u201cWith our industry-leading loyalty program and engagement initiatives, we continue to shift toward a higher mix of accretive repeat orders,\u201d CEO Stan Chia said during the call. \u201cThese strategic efforts have proven successful, and midway into 2024, we are trending higher than the mix of repeat orders achieved in 2023.\u201d
\nThe post Cost-Conscious Consumers\u2019 Demand for Discounts Fuels Digital Growth Across Retail appeared first on PYMNTS.com.
\n", "content_text": "As consumers\u2019 ongoing financial concerns drive them to seek deals and promotions, brands across retail categories are seeing increased engagement with their loyalty programs.\nSportswear brand Under Armour shared on a call with analysts Thursday (Aug. 8) discussing its first-quarter fiscal 2025 earnings results that it is seeing quick adoption of its relatively new loyalty program, UA Rewards.\n\u201cOur loyalty program is \u2026 giving us an added boost in realizing improved long-term growth, profitability and higher brand engagement,\u201d President and CEO Kevin Plank said during the call. \u201cWith less than a year under our belts in North America, UA Rewards has grown quickly, and its performance has been a positive contributor. The program has nearly 5 million members and is growing month by month.\u201d\nPlank added that roughly 50% of the members joining are new customers.\nThe growth comes as the gap between the economic sentiment \u2014 and the spending power \u2014 of high-income and low-income consumers widens. Amid this pressure, consumers are looking for digital tools that will help them save on cost. The study \u201c2024 Global Digital Shopping Index: U.S. Edition,\u201d a PYMNTS Intelligence collaboration with Visa Acceptance Solutions, found that 75% of retail shoppers expect digital coupons for in-store and online shopping, and 74% expect relevant promo codes.\nAgainst this backdrop, beauty retailers and brands, too, are seeing increased demands for their loyalty offerings. Sally Beauty, for instance, noted on its third-quarter fiscal 2024 earnings call Friday (Aug. 9) that in the three-month period, 78% of sales in the U.S. and Canada came from its loyalty program members, which held a member base of 16 million users.\n\u201cAdditionally, our Elite loyalty members who represent our most valuable and frequent shoppers grew by 6% year over year,\u201d President and CEO Denise Paulonis noted on the call.\nE.l.f. Beauty, for its part, noted on its own first-quarter fiscal 2025 earnings call Thursday that loyalty program enrollment rose 30% year over year and the program now has more than 5 million members.\n\u201cOur Beauty Squad loyalists have higher average order values, purchase more frequently, have stronger retention rates and are a rich source of first-party data,\u201d Senior Vice President and Chief Financial Officer Mandy Fields said during the call.\nFood service brands are similarly noting increased demand for their loyalty programs. For instance, Krispy Kreme President and CEO Josh Charlesworth said on an earnings call Thursday that the sweet treats brand\u2019s loyalty program\u2019s relaunch in April contributed to 22% digital sales growth year over year and membership is up 27%, expanding the company\u2019s ability to provide personalized offers. PYMNTS Intelligence research found that 83% of consumers are interested in receiving such offers.\nSimilarly, fast-casual chain Noodles & Company shared on a call discussing its second-quarter earnings results Wednesday (Aug. 7) that 26% of sales came from loyalty program members and that these customers spend twice as much as those who are not members. Plus, in the quarter, traffic among loyalty program members rose 5% year over year.\nBeyond retail, loyalty programs are also driving increased engagement in the live events space, as ticket resale platform Vivid Seats noted in its second-quarter earnings call Tuesday (Aug. 6).\n\u201cWith our industry-leading loyalty program and engagement initiatives, we continue to shift toward a higher mix of accretive repeat orders,\u201d CEO Stan Chia said during the call. \u201cThese strategic efforts have proven successful, and midway into 2024, we are trending higher than the mix of repeat orders achieved in 2023.\u201d\nThe post Cost-Conscious Consumers\u2019 Demand for Discounts Fuels Digital Growth Across Retail appeared first on PYMNTS.com.", "date_published": "2024-08-12T12:00:03-04:00", "date_modified": "2024-08-12T12:00:03-04:00", "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/2022/05/Under-Armour-1.jpg", "tags": [ "apparel", "beauty", "e.l.f. Beauty", "Earnings", "ecommerce", "food and beverage", "Krispy Kreme", "loyalty rewards", "News", "Noodles & Company", "PYMNTS News", "QSRs", "Restaurants", "Retail", "Sally Beauty", "UA rewards", "Under Armour", "Vivid Seats", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=2022411", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/how-technology-with-a-side-of-service-is-shaping-restaurant-loyalty/", "title": "How Technology With a Side of Service Is Shaping Restaurant Loyalty", "content_html": "Shifts in consumer behavior and advancements in technology are transforming the restaurant industry.
\nThe evolving landscape of loyalty and engagement is also a trend to watch, Steve Fusco, president and head of all distribution for Rewards Network, told PYMNTS.
\n\u201cIf you look more generally at the direction of technology, everything is moving more toward self-service and frankly, simplicity \u2026 a lot of restaurant technologies are adopting that same trend,\u201d Fusco said.
\nIt was during the COVID-19 pandemic that a substantial push toward technologies such as QR codes for menu access and ordering first emerged, reflecting a consumer trend toward convenience and minimal contact.
\nFusco stressed that while technology plays a crucial role in dining out, the essence of a memorable dining experience lies in the quality of service. This realization has prompted many restaurant owners to focus on creating an atmosphere that fosters loyalty through personalized and attentive service, rather than relying solely on technological solutions \u2014 particularly as consumers seek a return to more traditional, service-oriented dining experiences.
\nThis underscores a critical insight: Dining out is more than a transaction; it is an experience that technology cannot replace.
\nBut that doesn\u2019t mean it is an experience technology can\u2019t productively, proactively and profitably augment.
\n\u201cIn today\u2019s context, dining is less about the technology than it is about the loyalty,\u201d Fusco said.
\nFusco said his company\u2019s primary mission is to drive full-price-paying diners to restaurants, enhancing those restaurants\u2019 customer bases without resorting to discounting strategies that could undermine pricing leverage.
\nBy collaborating with major loyalty brands such as airlines and hotel chains, Rewards Network helps restaurants attract customers who are likely to spend more and return more frequently while positioning itself as a critical partner for restaurants, particularly local and independent establishments that may not have the extensive marketing reach of larger chains.
\nThis approach offers an advantage to smaller restaurants, which often lack the resources to implement comprehensive marketing and loyalty programs.
\nOne of the unique offerings from Rewards Network is its ability to provide detailed sentiment analysis based on customer reviews, Fusco said. This tool enables restaurant owners to pinpoint specific aspects of their service or food quality that are influencing their overall ratings. By understanding these nuances, restaurants can make informed decisions to enhance their offerings and improve customer satisfaction.
\nFusco pointed out that such data-driven insights are invaluable for small, independent operators who might otherwise lack the resources to conduct comprehensive market research. This capability levels the playing field, allowing smaller establishments to compete with larger chains in delivering superior dining experiences.
\nAfter all, while large, nationally distributed brands can capture vast amounts of customer data, independent operators typically struggle to gather actionable insights.
\nWhen it comes to evaluating the effectiveness of loyalty programs, Fusco advised restaurant owners to focus on metrics that align with their specific business goals. While common metrics include customer acquisition, repeat dining behavior and average ticket size, the key is to understand what the restaurant aims to achieve.
\nWhether it\u2019s increasing first-time visits or enhancing customer retention, the chosen metrics should directly reflect these objectives, he said.
\nIn discussing emerging channels for engagement, Fusco highlighted the surprising relevance of email marketing, especially at the local level. While not the most cutting-edge medium, email remains an essential tool for building and maintaining a large customer base.
\nMore contemporary channels, such as social media platforms like TikTok, have also become crucial for restaurants looking to engage with a younger, more digital-savvy audience. Fusco mentioned that successful restaurants often employ dedicated staff to produce engaging content, such as videos showcasing unique dishes or special events. This content can go viral, boosting a restaurant\u2019s visibility and customer traffic.
\nThe success of Rewards Network is largely built on its strategic partnerships with well-known loyalty brands, said Fusco, who emphasized the importance of aligning with reputable partners such as American Airlines, Delta Air Lines and Marriott Bonvoy. These partnerships allow local restaurants to tap into a vast customer base, offering loyalty rewards that might otherwise be inaccessible to them.
\nThe post How Technology With a Side of Service Is Shaping Restaurant Loyalty appeared first on PYMNTS.com.
\n", "content_text": "Shifts in consumer behavior and advancements in technology are transforming the restaurant industry.\nThe evolving landscape of loyalty and engagement is also a trend to watch, Steve Fusco, president and head of all distribution for Rewards Network, told PYMNTS.\n\u201cIf you look more generally at the direction of technology, everything is moving more toward self-service and frankly, simplicity \u2026 a lot of restaurant technologies are adopting that same trend,\u201d Fusco said.\nIt was during the COVID-19 pandemic that a substantial push toward technologies such as QR codes for menu access and ordering first emerged, reflecting a consumer trend toward convenience and minimal contact.\nFusco stressed that while technology plays a crucial role in dining out, the essence of a memorable dining experience lies in the quality of service. This realization has prompted many restaurant owners to focus on creating an atmosphere that fosters loyalty through personalized and attentive service, rather than relying solely on technological solutions \u2014 particularly as consumers seek a return to more traditional, service-oriented dining experiences.\nThis underscores a critical insight: Dining out is more than a transaction; it is an experience that technology cannot replace.\nBut that doesn\u2019t mean it is an experience technology can\u2019t productively, proactively and profitably augment.\n\u201cIn today\u2019s context, dining is less about the technology than it is about the loyalty,\u201d Fusco said.\nThe Role of Technology in Shaping the Restaurant Ecosystem\nFusco said his company\u2019s primary mission is to drive full-price-paying diners to restaurants, enhancing those restaurants\u2019 customer bases without resorting to discounting strategies that could undermine pricing leverage.\nBy collaborating with major loyalty brands such as airlines and hotel chains, Rewards Network helps restaurants attract customers who are likely to spend more and return more frequently while positioning itself as a critical partner for restaurants, particularly local and independent establishments that may not have the extensive marketing reach of larger chains.\nThis approach offers an advantage to smaller restaurants, which often lack the resources to implement comprehensive marketing and loyalty programs.\nOne of the unique offerings from Rewards Network is its ability to provide detailed sentiment analysis based on customer reviews, Fusco said. This tool enables restaurant owners to pinpoint specific aspects of their service or food quality that are influencing their overall ratings. By understanding these nuances, restaurants can make informed decisions to enhance their offerings and improve customer satisfaction.\nFusco pointed out that such data-driven insights are invaluable for small, independent operators who might otherwise lack the resources to conduct comprehensive market research. This capability levels the playing field, allowing smaller establishments to compete with larger chains in delivering superior dining experiences.\nAfter all, while large, nationally distributed brands can capture vast amounts of customer data, independent operators typically struggle to gather actionable insights.\nEmerging Channels and the Metrics That Matter\nWhen it comes to evaluating the effectiveness of loyalty programs, Fusco advised restaurant owners to focus on metrics that align with their specific business goals. While common metrics include customer acquisition, repeat dining behavior and average ticket size, the key is to understand what the restaurant aims to achieve.\nWhether it\u2019s increasing first-time visits or enhancing customer retention, the chosen metrics should directly reflect these objectives, he said.\nIn discussing emerging channels for engagement, Fusco highlighted the surprising relevance of email marketing, especially at the local level. While not the most cutting-edge medium, email remains an essential tool for building and maintaining a large customer base.\nMore contemporary channels, such as social media platforms like TikTok, have also become crucial for restaurants looking to engage with a younger, more digital-savvy audience. Fusco mentioned that successful restaurants often employ dedicated staff to produce engaging content, such as videos showcasing unique dishes or special events. This content can go viral, boosting a restaurant\u2019s visibility and customer traffic.\nThe success of Rewards Network is largely built on its strategic partnerships with well-known loyalty brands, said Fusco, who emphasized the importance of aligning with reputable partners such as American Airlines, Delta Air Lines and Marriott Bonvoy. These partnerships allow local restaurants to tap into a vast customer base, offering loyalty rewards that might otherwise be inaccessible to them.\nThe post How Technology With a Side of Service Is Shaping Restaurant Loyalty appeared first on PYMNTS.com.", "date_published": "2024-08-06T04:03:51-04:00", "date_modified": "2024-08-05T22:48:44-04:00", "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/2024/08/Rewards-restaurants-loyalty-tech.jpg", "tags": [ "data analytics", "Featured News", "food and beverage", "Innovation", "loyalty rewards", "News", "PYMNTS News", "pymnts tv", "QSRs", "Restaurants", "Rewards Network", "Social Media", "Steve Fusco", "Technology", "video", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=2021782", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/bilt-valued-at-3-2-billion-as-rewards-program-grows/", "title": "Bilt Valued at $3.2 Billion as Rewards Program Grows", "content_html": "Loyalty rewards platform Bilt is valued at $3.2 billion after a new funding round.
\nThe company raised $150 million from a round led by the Ontario Teachers\u2019 Pension Plan, Bilt announced Thursday (Aug. 1), just months after a $200 million round valued it at $3.1 billion.\u00a0
\n\u201cSince the January announcement, Bilt has experienced remarkable growth across multiple facets of its business,\u201d Bilt said in a news release. \u201cThe company\u2019s platform spend has surged to over $30 billion annually, representing a 50% increase from January\u2019s announcement.\u201d\u00a0
\nThe company did not provide a new valuation for the new funding round, but a report by Bloomberg News pegged it at $3.2 billion.
\nLaunched in 2021, Bilt lets members earn points for spending, which they can use for credits on their rent or for rewards with merchants.
\nThe company says its growth has been fueled by expanding its resident loyalty program to more apartment buildings, including seven of the 10 largest multifamily managers, as well as into the condominium and HOA market.\u00a0
\n\u201cBilt\u2019s resident loyalty program continues to evolve, helping properties collect on-time rent payments, offer tailored benefits to residents, and generate new revenue from local spend at partner merchants,\u201d the release said. \u201cThis addresses a critical need in the market, as rent represents the single largest expense for most Americans.\u201d
\nIn fact, more than 34% of U.S. residents rent their homes, and nearly all Americans are struggling to keep up with their housing costs, as PYMNTS wrote earlier this year.
\n\u201cMany are making significant sacrifices in their daily lives to cover their payments, with some turning to drastic measures,\u201d that report said.
\n\u201cTwenty-two percent of respondents report skipping meals, while nearly 21% work extra hours or sell belongings. Additionally, roughly 18% have borrowed money from friends and family, and 17.6% have pulled money from their retirement savings. Furthermore, 15.6% have either delayed or skipped medical treatments to save money for housing.\u201d
\nMeanwhile, Bilt in June teamed up with Banyan to offer more rewards for its members.
\n\u201cThe addition of Banyan item-level data capabilities opens exciting new opportunities for Bilt and its rewards network partners to power ever more relevant, tailored and unique rewards and benefits experiences for members,\u201d Banyan said in a blog post.
\nResearch by PYMNTS Intelligence shows that card-linked offers, which offer special savings or rewards tied to a merchant or a product, are popular with cardholders, with around 40% consistently using these offers, and 93% of that group planning to maintain or increase their use of these offers in the next year.
\n\u00a0
\nThe post Bilt Valued at $3.2 Billion as Rewards Program Grows appeared first on PYMNTS.com.
\n", "content_text": "Loyalty rewards platform Bilt is valued at $3.2 billion after a new funding round.\nThe company raised $150 million from a round led by the Ontario Teachers\u2019 Pension Plan, Bilt announced Thursday (Aug. 1), just months after a $200 million round valued it at $3.1 billion.\u00a0\n\u201cSince the January announcement, Bilt has experienced remarkable growth across multiple facets of its business,\u201d Bilt said in a news release. \u201cThe company\u2019s platform spend has surged to over $30 billion annually, representing a 50% increase from January\u2019s announcement.\u201d\u00a0\nThe company did not provide a new valuation for the new funding round, but a report by Bloomberg News pegged it at $3.2 billion.\nLaunched in 2021, Bilt lets members earn points for spending, which they can use for credits on their rent or for rewards with merchants.\nThe company says its growth has been fueled by expanding its resident loyalty program to more apartment buildings, including seven of the 10 largest multifamily managers, as well as into the condominium and HOA market.\u00a0\n\u201cBilt\u2019s resident loyalty program continues to evolve, helping properties collect on-time rent payments, offer tailored benefits to residents, and generate new revenue from local spend at partner merchants,\u201d the release said. \u201cThis addresses a critical need in the market, as rent represents the single largest expense for most Americans.\u201d\nIn fact, more than 34% of U.S. residents rent their homes, and nearly all Americans are struggling to keep up with their housing costs, as PYMNTS wrote earlier this year.\n\u201cMany are making significant sacrifices in their daily lives to cover their payments, with some turning to drastic measures,\u201d that report said.\n\u201cTwenty-two percent of respondents report skipping meals, while nearly 21% work extra hours or sell belongings. Additionally, roughly 18% have borrowed money from friends and family, and 17.6% have pulled money from their retirement savings. Furthermore, 15.6% have either delayed or skipped medical treatments to save money for housing.\u201d\nMeanwhile, Bilt in June teamed up with Banyan to offer more rewards for its members.\n\u201cThe addition of Banyan item-level data capabilities opens exciting new opportunities for Bilt and its rewards network partners to power ever more relevant, tailored and unique rewards and benefits experiences for members,\u201d Banyan said in a blog post.\nResearch by PYMNTS Intelligence shows that card-linked offers, which offer special savings or rewards tied to a merchant or a product, are popular with cardholders, with around 40% consistently using these offers, and 93% of that group planning to maintain or increase their use of these offers in the next year.\n\u00a0\nThe post Bilt Valued at $3.2 Billion as Rewards Program Grows appeared first on PYMNTS.com.", "date_published": "2024-08-04T18:28:18-04:00", "date_modified": "2024-08-04T18:29:48-04:00", "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/2024/08/Bilt.jpg", "tags": [ "Bilt", "Bilt Rewards", "digital transformation", "funding", "fundraising", "housing", "loyalty rewards", "News", "PYMNTS News", "Rent", "Rent Payments", "Rewards", "rewards programs", "What's Hot", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=2020689", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/rewards-drive-mobile-wallet-use-one-third-ecommerce-shoppers/", "title": "Rewards Drive Mobile Wallet Use for One-Third of eCommerce Shoppers", "content_html": "Rewards are a stronger draw for digital wallet users shopping via digital channels than those making purchases in person.
\nA survey of more than 4,100 United States consumers for the 2023 PYMNTS Intelligence study \u201cApple Pay @9: The Battle for in-Store Adoption and Usage\u201d found that the factors driving consumers to use mobile wallets vary slightly depending on whether the consumer is shopping digitally or in stores.
\n
Specifically, 33.6% of consumers who made purchases with mobile wallets in the 24 hours before being surveyed cited rewards as an important reason that they used mobile wallets for their most recent online purchase. In contrast, only 29% said the same for their most recent in-store purchase.
\nHowever, in-store shoppers were slightly more likely to cite rewards as the most important reason for using mobile wallets, with 5.9% saying as much versus 4.7% of online shoppers.
\nConversely, in-store shoppers were more likely to cite fraud and security concerns as an important reason for using mobile wallets than online shoppers (30.1% of the former versus just 27.5% of the latter), but online shoppers were more likely to cite it as the top reason (8.1% versus 6.4%).
\nFurther PYMNTS Intelligence data showed that there is considerable demand for digital wallet rewards. The June report \u201cDigital Wallets Beyond Financial Transactions: A Global Perspective\u201d found that 28% of consumers said they will likely use digital wallets to store and access rewards, discounts or coupons in the next three years. Plus, 22% of consumers cited rewards, discounts or deals for using digital wallets as a key factor positively contributing to their use going forward.
\nAs mobile wallets continue to evolve, the allure of rewards programs remains a factor driving their adoption, particularly in the eCommerce space.
\nFor all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
\nThe post Rewards Drive Mobile Wallet Use for One-Third of eCommerce Shoppers appeared first on PYMNTS.com.
\n", "content_text": "Rewards are a stronger draw for digital wallet users shopping via digital channels than those making purchases in person.\nBy the Numbers\nA survey of more than 4,100 United States consumers for the 2023 PYMNTS Intelligence study \u201cApple Pay @9: The Battle for in-Store Adoption and Usage\u201d found that the factors driving consumers to use mobile wallets vary slightly depending on whether the consumer is shopping digitally or in stores.\n\nSpecifically, 33.6% of consumers who made purchases with mobile wallets in the 24 hours before being surveyed cited rewards as an important reason that they used mobile wallets for their most recent online purchase. In contrast, only 29% said the same for their most recent in-store purchase.\nHowever, in-store shoppers were slightly more likely to cite rewards as the most important reason for using mobile wallets, with 5.9% saying as much versus 4.7% of online shoppers.\nConversely, in-store shoppers were more likely to cite fraud and security concerns as an important reason for using mobile wallets than online shoppers (30.1% of the former versus just 27.5% of the latter), but online shoppers were more likely to cite it as the top reason (8.1% versus 6.4%).\nA Deeper Dive\nFurther PYMNTS Intelligence data showed that there is considerable demand for digital wallet rewards. The June report \u201cDigital Wallets Beyond Financial Transactions: A Global Perspective\u201d found that 28% of consumers said they will likely use digital wallets to store and access rewards, discounts or coupons in the next three years. Plus, 22% of consumers cited rewards, discounts or deals for using digital wallets as a key factor positively contributing to their use going forward.\nAs mobile wallets continue to evolve, the allure of rewards programs remains a factor driving their adoption, particularly in the eCommerce space.\nFor all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.\nThe post Rewards Drive Mobile Wallet Use for One-Third of eCommerce Shoppers appeared first on PYMNTS.com.", "date_published": "2024-08-01T17:33:36-04:00", "date_modified": "2024-08-01T17:33:36-04:00", "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/2024/04/digital-wallets-mobile-payments.png", "tags": [ "Apple Pay @9: The Battle for In-Store Adoption and Usage", "digital wallets", "Digital Wallets Beyond Financial Transactions: A Global Perspective", "ecommerce", "fraud", "loyalty rewards", "Mobile Wallets", "News", "PYMNTS Intelligence", "PYMNTS News", "PYMNTS Study", "Retail", "Security", "Loyalty & Rewards" ] }, { "id": "https://www.pymnts.com/?p=2014847", "url": "https://www.pymnts.com/news/loyalty-and-rewards-news/2024/unlocking-loyaltys-potential-how-product-market-fit-drives-program-success/", "title": "Unlocking Loyalty\u2019s Potential: How Product-Market Fit Drives Program Success", "content_html": "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" ] } ] }