MARKET WATCH
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SECTION TWO
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Retail Flexes Loyalty Marketing Muscles: COLLOQUY Census
Retailer loyalty programs - led by department, drug and specialty stores - have captured the spotlight in the 2013 COLLOQUY Loyalty Census.
Department Stores achieved 70% growth in loyalty program memberships since the 2011 COLLOQUY Census, far surpassing the 26.7% rate of growth in loyalty programs across all sectors tabulated in the 2013 Census. The number of Department Store memberships is 193.9 million.
Drug Store memberships grew an impressive 45% since 2011 to a total of 142.4 million.
Memberships in Specialty Retail programs rose to 360.5 million for a 26% increase since 2011, and Specialty Retail is positioned to pass Airline programs (at 371.2 million memberships) to take second place, behind only Financial Services, in the rankings of loyalty program memberships by sector.
COLLOQUY is the research arm of LoyaltyOne, a global leader in the design and implementation of coalition loyalty programs, customer analytics and loyalty services. The COLLOQUY Loyalty Census previously has been published in 2000, 2007, 2009 and 2011.
COLLOQUY’s latest count shows that the average U.S. household holds 21.9 memberships in loyalty programs but is active in 9.5 of those. In the 2011 Census, the numbers were 18.4 and 8.4.
The 2013 Census shows that total membership in U.S. loyalty marketing programs across all sectors is 2.647 billion, a 26.7 percent increase over the 2.089 billion memberships in 2011.
“As the economy slowly breathes new life, loyalty programs have gained increased awareness,” said Jeff Berry, Senior Director, Knowledge Development and Application at LoyaltyOne, and COLLOQUY Research Director. “We expect continued growth as increasingly sophisticated programs revitalize engagement with existing members and attract new participants.”
In other significant findings, the Financial Services sector has blossomed again, reaching 548.3 million memberships, representing a 27.9% growth rate over 2011. Grocery loyalty programs, conversely, are wilting, with 172.4 million memberships that represent a 1% contraction from 2011.
Gas prices are up but memberships in fuel and convenience store loyalty programs are not. Fuel and convenience program membership plunged 21% to 25.3 million in the 2013 Census.
Complete details of the latest Census are available free of charge in a new report, Bulking Up: The 2013 COLLOQUY Loyalty Census, which has been posted on the www.colloquy.com website.
Weis Markets Joins Inmar Promotion Network
Weis Markets, the mid-tier grocery retailer, has joined the Inmar Promotion Network with the activation of a new digital coupon program.
The new eCoupon program allows registered members of the Weis Preferred Shoppers Club to access and “clip” paperless coupons at the grocer’s website: weismarkets.com. The selected coupons are added to the cardholder’s account and automatically redeemed at checkout when the required purchase is made and the customers present their Weis Club Card or card I.D. number.
The eCoupon program - in place at all 164 Weis Markets’ stores in Pennsylvania, Maryland, New York, New Jersey and West Virginia - is another technology-driven shopper engagement effort from this retailer.
The addition of paperless coupons to their marketing portfolio is part of a nationwide response to the rapidly growing demand for digital promotions by shoppers. According to Inmar, redemption of paperless coupons has doubled in volume every year since 2008. In 2012, Inmar processed more than 20 million paperless coupons.
“Our mission at Weis is to deliver an exceptional shopping experience based on value, quality and service. Our eCoupons program helps us conveniently deliver paperless coupons to our Weis Club members,” said David Hepfinger, President and CEO of Weis Markets. “This will help us reward shopper loyalty and drive sales.”
The eCoupon program is just the latest collaborative engagement between Inmar and Weis Markets. In addition to this effort, Inmar also provides Weis Markets with processing for their paper coupons and manages both their reverse logistics (front store) and their store pharmacy returns program.
“Weis Markets strategy of deploying a paperless coupon program further illustrates that retailers who truly know how shopper behavior is changing are adding digital promotions to their marketing mix,” said Inmar CEO David Mounts. “The convergence of paper coupons, digital media and digital coupons in promotion-based marketing is rapidly increasing and Weis Markets has, again, demonstrated their responsiveness to shifting consumer demand,” added Mounts.
Digital Engagement for Grocery Shopping Increasing: Study
There has been increase in shoppers’ use of technology for grocery shopping trips, according to The Why? Behind The Buy, a new study from Acosta Sales & Marketing
The report also provides insights on the shopping patterns of the Gen X and Gen Y shopper, as well as the American economy and growing consumer preference healthier food options.
The influence of digital engagement is undeniable, according to the report. More shoppers, especially Gen Y and U.S. Hispanics, are using technology before, during and after grocery shopping. Other details include:
- Seven of 10 shoppers use Facebook and 45% of them visit brand pages at least monthly, primarily for coupons and special offers.
- Year-over-year measurement of digital behaviors, such as visiting a store website to download a coupon, getting e-mails from a manufacturer/retailer and loading coupons onto one’s shopper loyalty card from a website, are on the rise across the board.
- Three of four shoppers (74%) of shoppers polled believe that digital devices are important to log in and update loyalty points, while 71% use digital devices to post a product review.
The Why? Behind the Buy report provides insights into the behavior and buying patterns of today’s shoppers, as well as actionable tips to help CPG and retail marketers adapt to the ever-evolving shopping landscape. Compiled by AMG Strategic Advisors, Acosta’s growth strategy consulting unit, the comprehensive national research report found that the American economy is turning the corner, and American shoppers are choosing healthier food options with more frequency and determination. A free download of The Why? Behind the Buy is available by clicking here.
Adoption of Mobile POS to Advance Slowly: Study
Nearly three of 10 of North American retailers (28%) plan to adopt mobile tablets such as iPads for POS transactions by the end of the year, says a new study. Meanwhile, one of three (33%) will not do so in the next three years
“There are key operational issues in device and merchandise security, cash handling, payments, bags, customer service levels and traffic flow that must be worked through or the use of the devices will be disruptive in a negative way for retailers,” said Greg Buzek, president, IHL Group, which produced the Mobile POS: Hype to Reality study.
Inmar’s VP of Communications Receives Business Award
Sharon Joyner-Payne, Inmar’s Vice President, Communications, has been named among the Triad’s top women business leaders by The Triad Business Journal. This award recognizes women leaders who are influencing Triad businesses and serving the community.
Inmar, operator of intelligent commerce networks, is based in Winston-Salem, N.C.
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