WASHINGTON – American households save an average of $1,500 each year through retail loyalty and discount programs, according to new research commissioned by the Retail Industry Leaders Association (RILA) and conducted by Circana.
The study, released Thursday, November 12, found that 74% of consumers consider retail affordability their top concern, while 85% say loyalty programs help them get more value from purchases they were already planning to make.
The report, The Consumer Value of Retail Loyalty Programs: How Loyalty Helps American Households Navigate Affordability, examines how shoppers use loyalty programs, discounts, and rewards to manage household spending.
|
The findings underscore the importance of these programs for families with children, as 78% of those households report that loyalty benefits help them stay within their budgets.
“Consumers are being increasingly deliberate about where and how they spend, and loyalty programs have become an important tool for households looking to maximize the value of those dollars,” said Kiara Barrett, global head of thought leadership at Circana. “What stands out in this research is that consumers understand how these programs work and see a clear benefit from participating.”
The research also examined consumer attitudes toward sharing personal information in exchange for discounts and rewards. Three in four respondents (75%) said loyalty programs generally offer a fair exchange of value, while 25% believe shoppers give up more information than the benefits are worth.
RILA president Brian Dodge said the findings demonstrate the financial benefits of loyalty programs as retailers respond to consumers’ growing focus on affordability.
“This study puts real numbers behind something retailers see every day: consumers use loyalty programs and seek out deals and discounts because they deliver meaningful savings and value,” Dodge said. “At a time when affordability is front and center for families, saving roughly $1,500 a year can make a real difference.”
RILA said the findings should inform discussions about the use of consumer data in retail loyalty programs and the value personalized discounts and rewards provide shoppers.
The association represents more than 200 retailers, product manufacturers, and service suppliers, collectively accounting for more than $2.7 trillion in annual sales.
