When it comes to rewards preferences, older generations tend to want to receive perks for their grocery and restaurant spending, but they don’t necessarily want to be rewarded for many other kinds of purchases.
The PYMNTS Intelligence report “The Credit Economy: The Role of Reward Programs in Consumer Credit Usage” drew from a survey of more than 3,200 U.S. consumers to understand their behaviors and attitudes around the rewards that credit card loyalty programs offer.
The results revealed that among baby boomers and seniors who would like a credit card to offer them any rewards, 44% were interested in such offers for their grocery purchases, and 35% said the same about buying food from a restaurant. Yet that share dropped to 25%, at most, for other kinds of purchases.
The findings showed that for credit cards looking to drive participation with baby boomers and seniors, food rewards can go a long way. For grocers and restaurants, the data suggests that partnering with credit card companies on card-linked offers could help drive loyalty with older consumers, given that people in this group are less likely to participate in merchants’ own rewards apps.
For instance, data from the PYMNTS Intelligence report “ConnectedEconomy™ Monthly Report: The Urban-Rural Health Divide Edition” found that baby boomers and seniors were increasing their digital participation with restaurants and grocers less than, say, bridge millennials.
This insight underscores the potential for credit card companies, grocers and restaurants to strategically align their offerings to cater to the specific desires of this demographic. For credit card companies and food sellers, collaborating on card-linked offers may prove to be a mutually beneficial strategy, enhancing customer loyalty and satisfaction among this consumer segment.