Debit and credit card reward programs have become extremely effective in building loyalty in many industries. A study done by PYMNTS-Bayan highlights the travel sector which has bounced back with a rage since the pandemic.
In their recent study “Leveraging Item-Level Receipt Data: How Card-Linked Offers Drive Customer Loyalty”, PYMNTS surveyed over 2,000 American consumers to better understand how willing they were to use loyalty and reward programs offered through credit and debit cards, and how merchants can leverage them to increase awareness and usage.
The key insights are listed below:
- 65% of card users (both debit and credit) prefer to shop with merchants or brands where they are already active participants in their loyalty programs.
- 34% are willing to try new brands or merchants.
- 23% will periodically visit specific brands or merchants.
- ~40-50% of millennials, consumers with children and consumers who recently started engaging with a brand are more inclined to switch to businesses with card-linked programs. This same cohort also are more likely to be attracted to merchants offering specialized programs for their business.
Merchants in the travel industry can leverage item-level receipt data to capture this potential. Analyzing receipt data can help merchants tailor specific offers based on consumer behaviour. Leveraging the data can engage existing customers and attract new ones.
Customers who are part of loyalty programs are more satisfied with the merchants who offer them than customers who are not. These customers are more satisfied when loyalty programs are tailored to their preferences, which in-turn increase consumer spending and engagement.
Nearly 40% of consumers surveyed in the report had not used card-linked offers because they were not familiar with these programs. This poses a huge opportunity for merchants to increase consumer awareness of card-linked programs and promote these programs.
Driving these programs can help increase customer lifetime value and keep consumers within a merchants ecosystem helping merchants grow their business for the long term.
For more information on the report conducted by PYMNTs click here.