Grocery store rewards programs have long been popular for their ability to foster customer loyalty and provide tangible benefits to shoppers. However, these programs also play a pivotal role during times of inflation, benefiting both the grocery store and the consumer.
These programs, frequently providing discounts, cashback and exclusive promotions, foster a habit of repetitive shopping at the same grocery store among consumers. However, their importance transcends mere convenience and cost savings, especially in times of inflation.
Reinforcing this idea is research from PYMNTS Intelligence, which reveals that 65% of credit or debit card users have a preference for shopping with brands or merchants that offer loyalty or rewards programs in which they participate.
“We designed the myPerks Pay Rewards Visa Credit Card program in response to evolving trends that indicate consumers are becoming more interested in applying their rewards toward everyday essentials, like groceries and fuel,” said Dan Magrish, senior director of payment strategy and strategic partnerships at Giant Eagle, in a statement emailed to PYMNTS.
This decision also aligns with additional insights from PYMNTS, which indicate that card-linked offers can be a valuable tool for grocers aiming to enhance customer loyalty and increase their market share by reaching approximately 50% of all shoppers.
In the recently released report “Leveraging Item-Level Receipt Data: How Card-Linked Offers Drive Customer Loyalty,” PYMNTS Intelligence found that approximately 60% of individuals were inclined to participate in a product-specific card-linked offer program within the next three months, and about the same share report a very high or extremely high likelihood of utilizing card-linked offers for their grocery purchases during the same timeframe.
The study was based on a survey conducted in July, which gathered responses from over 2,000 U.S. consumers. The objective was to gain insights into consumer interactions with card-linked offers and related topics.
Amid the ongoing economic difficulties, establishing and maintaining the loyalty of grocery shoppers has proven to be a formidable task. According to a different study by PYMNTS Intelligence, it was discovered that 44% of grocery shoppers actively seek deals and are inclined to shop wherever they can find the most competitive prices. In contrast, only 17% of shoppers identify themselves as loyal customers who consistently stick to specific brands.
Taking this into consideration, Kroger, the largest pure-play grocery retailer in the U.S., has been utilizing digital promotions available through its app and website to entice customers into returning.
“We are creating more engagement with customers through personalization, offering more targeted and effective promotions, and our seamless ecosystem is resonating with customer needs and allows us to derive increased loyalty,” said CEO Rodney McMullen on an earnings call last month.
Numerous grocery brands predominantly rely on their in-house loyalty programs to re-engage customers. However, card-linked offers can also serve as a valuable addition to their repertoire, despite potential drawbacks.
Giant Eagle offers benefits to holders of the myPerks Pay Rewards Visa Card, such as a $50 “Welcome Bonus” upon card approval and the first purchase. The card also gives drivers using the myPerks Rewards card for fuel at GetGo gas stations a discount on a per-gallon basis, with the exact amount varying by location.
Cardholders also receive myPerks Pro Status for the first six months, enhancing their benefits. They can earn 2% in perks value on purchases at Giant Eagle, Market District and GetGo, in addition to standard perks obtained by scanning their advantage card while shopping at Giant Eagle’s locations.
Additionally, they earn 3% in perks value on qualifying dining purchases and 1% on all other eligible purchases.
“We are excited to launch the myPerks Pay Rewards Visa Credit Card to offer Giant Eagle, Market District and GetGo customers the opportunity to realize significant savings on groceries and fuel as they earn perks faster and in more ways than ever before,” said Magrish. “…Card holders will enjoy a differentiated shopping experience as they will join the top tier status of our robust loyalty platform and receive a rich reward on every gallon of fuel they pump at GetGo.”