Many Retailers Fall Short of Consumers’ Loyalty Program Expectations

As retailers look to meet consumers’ growing digital expectations, loyalty programs may remain a sticking point, PYMNTS Intelligence research suggests.

By the Numbers

The PYMNTS Intelligence study, “2024 Global Digital Shopping Index: U.S. Edition,” created in collaboration with Visa Acceptance Solutions, draws from a survey of more than 2,400 United States consumers to document the rise of Click-and-Mortar™ shopping experiences — those that merge the digital and the physical — in the U.S.

The results reveal that retail shoppers would like to see reward or loyalty programs as part of their Click-and-Mortar™ experience. However, 28% of consumers cannot find the feature when they look for it, making it one of the features where merchants are most likely to fall short of shoppers’ expectations.

The Data in Context

Many retailers, for their part, are looking to find the most effective way to offer consumers loyalty perks.

In an interview with PYMNTS, Rite Aid Chief Marketing Officer Jeanniey Walden said the retailer focuses on understanding customer behavior and preferences to tailor personalized experiences and offers.

“The first thing we did was we took a look using the data that we have access to, non-personally identifiable information, and identified the eight main reasons that anybody will shop at a Rite Aid in-store or online, and used those to help craft our loyalty programs,” Walden said.

Last month, retail giant Target announced it is revamping its Target Circle program. The new program will look more like, say, an Amazon Prime or a Walmart+, including a paid membership offering free same-day delivery from the retailer’s on-demand delivery aggregator Shipt as well as free two-day shipping from Target, among other perks.

“We’ve prioritized building strong relationships with guests since Target’s inception, and our reimagining of Target Circle continues that commitment,” Cara Sylvester, Target’s executive vice president and chief guest experience officer, said in a statement, adding that the goal is to “deliver more value and ease” while providing a shopping experience that feels more “personal” and “rewarding.”