41% of U.S. Shoppers Demand Digital Rewards

As retailers look to meet consumers’ digital expectations, PYMNTS Intelligence research reveals, loyalty rewards can go a long way.

By the Numbers

Research from PYMNTS’ study last year “The 2023 Global Digital Shopping Index: U.S. Edition,” which drew from a survey of more than 2,800 U.S. consumers, revealed that the ability to use and earn digital rewards is a high priority for many shoppers.

Specifically, 6% of consumers cited rewards as the digital shopping feature they demand above all others, and another 35% said they consider rewards to be very or extremely important, but not the most.

The Data in Context

In addition to meeting consumer demand for perks, loyalty programs also offer retailers a chance to gain vital insight into their shoppers’ behaviors.

Jennifer Slegers, director of customer relationship management (CRM) at Carhartt, recently told PYMNTS that the brand’s rewards-based loyalty program “does allow us to connect what they’ve bought online and in store so that we can improve their shopper journey.” Through this digital integration, she said, the brand has learned, for instance, that its softest products over-index on brick-and-mortar, where consumers can feel the fabric directly.

More retailers are finding ways to reward consumers for their loyalty. Yet it is not as simple as just offering rewards.

“Consumers have higher expectations of what they’re going to get, ultimately, from loyalty programs,” Len Covello, chief technology officer of Engage People, told PYMNTS in a conversation last month, noting that merchants are going to need to fine tune or even overhaul their rewards offerings.

Consumers want these programs to be simple and straightforward to use.

“We heard from some of our members that they found value in our loyalty programs, but that the multiple programs could be hard to manage. So, we’ve been on a journey to combine what was at one point four different programs into a single program with two tiers,” said Zach Dennett, vice president of loyalty, omnichannel and Hispanic formats at CVS Health, in an interview with PYMNTS earlier this year.

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