Differences in Value Perception
By John Hennessy, Vice President, Concept Shopping, Inc.
The results of the Vertis Customer Focus 2006: Grocery Study reveal different consumer preferences for different types of loyalty program rewards. Some adults (49 percent) prefer an immediate discount on a specific product during the current shopping trip. Others (34 percent of total and 42 percent of Hispanics) prefer to accumulate points for a larger reward.
According to Jim Litwin, vice president, market insights at Vertis, “From the results of our study, we have noticed a shift in reward programs and an increase in usage among younger demographics.”
Another interesting finding of the survey is ad circular use. Eighty-four percent of grocery insert readers use the insert to compare prices. Fifty-two percent use the circular to decide where to shop.
Moderator’s Comment: How can this survey help retailers improve their own loyalty programs?
Listen to the customer feedback. Offer both reward options.
Some shoppers prefer to accumulate for a larger, more valuable reward later. Others prefer immediate rewards. That there are differences should surprise
Rather than ignore either group, offer a program that incorporates both components. You wouldn’t offer only one brand of cereal. Why offer only one way
to reward your shoppers?
Make sure both components offer relevant and valuable rewards for shoppers that simultaneously improve your business. –
John Hennessy – Moderator
- Vertis Customer Focus Study Reveals Loyalty Card
Preferences Among Consumers; Adults Surveyed Prefer Discounts During Each Grocery Store Visit – Quote.com