Road to Rewards - American Shopper Insights

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American Shopper Insights 1 The Road to Rewards American Shopper Insights U.S. consumers exhibit striking regional differences in their levels of rewards activity, earning habits, brand loyalty and the types of loyalty programs they join An Excentus consumer survey by Ipsos eNation, third in the Road to Rewards series, January 2016 © 2016 Excentus Corporation

Transcript of Road to Rewards - American Shopper Insights

American Shopper Insights1

The Road to RewardsAmerican Shopper Insights

U.S. consumers exhibit striking

regional differences in their levels

of rewards activity, earning habits,

brand loyalty and the types of loyalty

programs they join

An Excentus consumer survey by Ipsos eNation, third in the Road to Rewards series, January 2016

© 2016 Excentus Corporation

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Retailers and loyalty programs eager to connect with U.S. consumers from coast to coast can be better poised for success in 2016 if they understand regional differences in how consumers perceive their favorite loyalty programs and how they earn and redeem their favorite rewards.

Knowing which traits and behaviors U.S. consumer have in common—and which are unique or more relevant to the Northeast, Midwest, South or West—can help retailers create, improve and fine-tune existing, partner-driven or standalone programs.

Loyalty program managers and marketers can fully leverage region-specific data about consumers’ shopping and driving routines, mobile behaviors, other consumers’ recommendations and key marketplace influences to more intelligently recruit, segment and target consumers, based on where they live.

Regional data helps marketers personalize communications and more precisely craft and market member campaigns, based on known behaviors and preferences. Long-term, regional data can support goals of increased membership, higher revenues, frequent engagement and deeper brand loyalty.

This third Excentus report, based on results of a July 2015 Ipsos eNation survey of more than 1,000 U.S. consumers, highlights regional differences in consumers’ behaviors and preferences for loyalty programs, with particular focus on currencies that enable them to earn everyday rewards to save on fuel at the pump.

Overview

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MIDWESTERNERS Most Active, Most Attentive to the Price of Gasoline

Midwestern consumers who populate America’s heartland are more likely to join a loyalty program that enables them to save on fuel (57%) than residents of the West (56%), South (52%) and Northeast (50%). They are also more active loyalty program members compared to other regions as well, representing 32% of all Fuel Rewards® program activity, vs. 31% South, 26% West and 25% Northeast.

Midwesterners’ thrift-conscious nature is evident in their dedication to saving money on fuel, regardless of prices at the pump. Sixty-nine percent (69%) of Midwesterners say it is important to earn rewards to save on fuel when gas prices rise, compared with 64% South, and 62% (tie) Northeast and West. Likewise, Midwesterners says it is equally important (57%, tied with Northeasterners) to continue saving on fuel when prices drop, compared with 55% South and 49% West.

Midwest

Membership % of Overall Activity

West

South

Northeast

57%

56%26%

32%

0% 10% 20% 40%30% 50% 70%60% 90%80% 100%

52%31%

50%25%

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NORTHEASTERNERS Heavy Drivers Who Embrace the Ease of Card-Linked Offer Savings, and Trust the Influence of Family/Friends

Ranked highest in terms of income among all four groups, Northeasterners (28%) link their fuel rewards-earning capability to a credit card more frequently than residents elsewhere (13% each South, West; 10% Midwest).

Northeasterners (27%) also say they drive more (vs. 23% Midwest, 18% South, 10%) West), and they are also more likely to join a fuel savings program based on a family/friend recommendation (15%) compared to consumers in other regions (9% tie, Midwest, South, West).

Compared with U.S. consumers elsewhere, Northeasterners are 7% more likely to join a fuel savings rewards program offered by a retail program (29%) or a restaurant/dining program (13%), and they’re also more likely (5%) than consumers from other regions (1%-3%) to track rewards from a wearable device (e.g., an Apple Watch, Samsung Watch).

Northeastern consumers are more likely to…

Link fuel savings to a credit card

Say they drive a lot

Join a fuel savings rewards program on a family/

friend recommendation

28%

27%

15%

0% 5% 10% 15% 20% 25% 30%

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SOUTHERNERS Embrace Discounts More than Brand/Retailer Loyalty

Ranked lowest by income, Southerners are more willing (by up to 7 percentage points) than residents around the country to switch brands (53%), grocery stores (49%) or retailers (45%) in order to earn rewards to save on the cost of gasoline. At 44%, the South also leads other regions for joining loyalty programs that help them save any way they can, compared with 41% Midwest, 37% West and 33% Northeast.

To save on gas, Southern consumers are more likely to…

Collectively, consumers in all four regions share the same top three reasons for joining a fuel savings rewards program: the program is offered through an existing loyalty program (average 46%), the program helps them save money (39%), and rewards can be earned at stores where they already shop (average 36%).

Switch brands

Switch grocers

Switch retailers

53%

49%

45%

40% 42% 44% 46% 48% 50% 52% 54%

% of consumers who say it’s important to save on fuel when gas prices rise:

69% Midwest

64% South

62% West & Northeast (tie)

% of consumers who say it’s important to save on fuel when gas prices fall:

57% Midwest & Northeast (tie)

55% South

49% West

% of consumers who pay attention to the price of gas:

71% Midwest

68% South

65% West

61% Northeast

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WESTERNERS Mobile-Savvy, They Like Doubling Up By Earning Fuel Savings Rewards From Programs, Retailers & Restaurants They Already Patronize

Westerners, meanwhile, are more likely to track rewards from a mobile app (23%) than consumers elsewhere (range of 12%-18%), and they are more likely (52%) to join a fuel savings rewards program because it is offered through an existing loyalty program where they shop (compared with 46% Northeast, 45% South, 40% Midwest).

And in order to earn $1 a gallon savings on fuel, Westerners are more willing than consumers elsewhere to switch brands (22% vs. 16% average elsewhere) or to dine out more frequently (25% vs. 22% average elsewhere).

Westerners join fuel savings rewards programs…

Offered by grocery stores

Through existing loyalty progams

To earn where they already shop

78%

52%

40%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

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Grocery Store Programs Rank #1, But U.S. Consumers’ Secondary Preferences for Earning Fuel Savings Vary by Region

Among the millions of consumers who use loyalty programs to save on fuel, most members earn rewards from grocery stores, with participation levels ranging from 78% (West) to 50% (Northeast). But consumers also earn rewards from a variety of other loyalty programs and relationships, too, with secondary preferences varying by region. Consumers’ #2-rated avenues for earning fuel rewards by region are:

It’s logical to wonder whether consumer enthusiasm for saving money on fuel wanes when gasoline prices drop. The answer is clear: it does not. Internal Excentus data shows that whether gas was $2 or almost $4 a gallon from 2013-2015:

• redemption rates in its fuel savings rewards program held steady at about 65%• memberscontinuedredeemingsavingsonfill-upsthataveraged12-13gallonspermonth• members’ frequency of redemption increased throughout 2015 as gasoline prices dropped, from

about1.4to2fill-upspermonth

Do prices at the pump play a role? Not at all. High or low, consumers continue to embrace, earn and redeem savings on fuel.

NortheastRetail program &

oil/gas credit card (tie)

Oil/gas credit card

Retail program

Major credit card

Midwest

South

West

27%

29%

22%

20%

0% 5% 10% 15% 20% 25% 30% 35%

IncomeNORTHEAST 34% under $50,000 66% over $50,000 (wealthiest)

WEST 38% under $50,000 62% over $50,000

MIDWEST 42% under $50,000 58% over $50,000

SOUTH 45% under $50,000 55% over $50,000 (least wealthy)

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U.S. retailers and loyalty program managers should fine-tune their rewards programs to cater to often striking regional differences in consumers’ levels of rewards activity, brand loyalty, earning habits, and the types of programs they join.

According to an Excentus-Ipsos survey of more than 1,000 U.S. consumers, Midwesterners represent the largest group of U.S. consumers who join the Fuel Rewards® program to save on the cost of gasoline, and they are more active earners than members in the South, West and Northeast. Midwesterners are also more likely to pay attention to gas prices and embrace the ability to save on fuel, regardless of prices at the pump.

Northeasterners, meanwhile, tend to be self-described heavier drivers who are eager to save on the costs of driving from a variety of programs, while Southerners are more likely to switch loyalty

Conclusion

to brands or retailers in order to earn rewards that make fuel more affordable. Westerners have the highest rates of membership in grocery store loyalty programs that offer fuel rewards, and they are more likely to track their rewards from a mobile app than consumers in other regions.

Understanding these regional variations can help retailers and loyalty professionals develop programs, messages and campaigns that resonate with consumers and support their loyalty-driven behaviors, activities and preferences.

The survey of 1,016 U.S. consumers was conducted July 10-13, 2015 by Ipsos eNation on behalf of Excentus Corp. The survey has a margin of error of +/- 3.1 percentage points.

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Media and Analyst Inquiries

Additional information and data from this survey is available to analysts and media professionals who cover customer loyalty, rewards programs, consumer behaviors, the retail sector and other

related topics of interest. For upcoming reports, research, articles or editorial calendars, please contact Vanessa Horwell, [email protected] or call +1-305-749-5342 ext. 232.

At Excentus, we create programs that help lower the cost of everyday life. Whether through direct-to-consumer programs like the Fuel Rewards® and fuelperks! programs, or through companies utilizing our Centego products and services, Excentus’ proprietary software engine helps numerous loyalty and marketing programs drive down the cost of everyday commodities like gasoline. In fact, since 2012, Excentus has helped consumers and small businesses across America save over $600 million at the pump. Creating real savings that positively affect the everyday lives of real people – that’s what Excentus is all about. Founded in 1996 in Dallas, TX, Excentus is a privately held company with more than 200 employees.

http://www.excentus.com/

Ipsos is the world’s third largest survey research firm with offices in 56 countries. In North America, Ipsos consists of 1,500 research professionals across 30 locations in the U.S. and Canada. Both the Ipsos survey invitation list and the returned data are weighted to reflect the demographic composition of the U.S. adult population.

http://www.ipsos-na.com/