Consumers are highly motivated by gift card loyalty incentives, with 80% indicating that such incentives influence their shopping decisions. Retailers can leverage this preference to boost loyalty program participation.
Key Findings:
Most Valued Incentives:
Converting loyalty points into gift cards (56%)
Bonus points for gift card spending (54%)
Gift card reload bonuses within an app (46%)
Preferred Industries:
Grocery (58%)
Restaurants (42%)
Retail stores (40%)
Entertainment (34%)
Drug stores (29%)
Data Privacy Concerns:
67% willing to share personal information for incentives
Over 50% have distanced themselves from brands perceived as too invasive
Top privacy concerns: excessive notifications, reminders/recommendations, and apps requesting too much data
Retail App Benefits:
Increased savings (69%)
Earning rewards (62%)
Digital Wallets:
60% find gift cards easier to use with digital wallets
55% experience greater convenience
44% feel security is enhanced
Implications for Retailers:
Offer diverse gift card incentives: Cater to various preferences by providing options for converting loyalty points, earning bonus points, and reload bonuses.
Focus on food and retail: Prioritize gift card loyalty incentives in the grocery and retail sectors, as these are the most preferred by consumers.
Balance personalization with privacy: Leverage data to personalize incentives, but be mindful of consumer privacy concerns and avoid excessive notifications or data collection.
Promote retail app benefits: Highlight the savings and rewards opportunities available through your app to encourage downloads and usage.
Integrate with digital wallets: Make gift cards easily accessible and secure through digital wallets to enhance the overall customer experience.
By implementing these strategies, retailers can effectively tap into consumer preferences for gift card loyalty incentives, ultimately driving greater participation in their programs and fostering customer loyalty.
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