This channel is surging for reward redemption

Results of a new survey indicate increasing consumer demand for a specific type of access to retail loyalty programs.

According to the fourth annual “Road to Rewards Report” from ERP software company PDI, the popularity of mobile apps among retail loyalty members is dramatically growing. Consumers citing mobile apps as their preferred redemption channel has jumped to 44%, more than double the percentage of 2015. In that year, only 20% of consumers surveyed said that mobile mattered.

The survey also reveals that loyalty programs with fuel savings are the most popular. Sixty-six percent of consumers belong to a loyalty program offering fuel rewards, a 12% uptick since the 2015 inaugural survey. Fuel savings are even more popular among Gen X respondents aged 35-44 (69%) and millennial respondents aged 25-34 (67%).

Interestingly, 75% of retailers surveyed collect consumer data from their loyalty programs, yet only one third (34%) use the information to attract new customers.

“This year’s survey data reinforces what we’ve seen in previous years - that consumers prefer loyalty programs that are easy to use and provide everyday value,” said Brandon Logsdon, president and general manager of marketing cloud solutions at PDI. 

The Road to Rewards 2019 survey was conducted among 2,221 consumers and 239 convenience retailers, grocers and CPG participants in the U.S. by ResearchScape, an independent research firm, for PDI.