Pulse Report: Shopper Cards from a Consumer Perspective

This latest Pulse Report examines whether or not consumers buy into the notion that participation in a shopper card program elicits steadfast fidelity to stores offering such programs. In a marketplace saturated with a wide array of shopper card programs, this report presents timely consumer insights on shopper card usage. While retailers say they are rewarding their best customers, consumers hold a vastly different viewpoint. At the same time, however, opportunities do exist for card programs to help differentiate stores in unique and relevant ways.

Many marketers, retailers and industry analysts cling to the time-worn belief that brand loyalty drives shopping behavior and that supermarkets are sacred spaces for loyalty-building efforts. Our recent research clearly demonstrates that nothing could be further from the truth - traditional retailer and product brand orientations and loyalty are formed mainly in the household. Supermarket shopper cards are evidence that traditional supermarket retailers ignore their customers' occasion-based needs in favor of "what happens in the store" - using the card as the passport to savings, discounts and specials as the means to increase shopping basket size.

Report Overview

Shopper Cards from a Consumer Perspective documents how well consumer attitudes and behaviors align with industry intent and practice. With approximately 30 figures and tables, this report looks beyond transaction size and shopping frequency patterns to begin to unravel the mystery surrounding who holds the key to loyalty: the consumer or the retailer?

The report answers these questions:

• Do consumers feel "rewarded" for using a shopper card? Are shopper cards effective in "driving" consumers to the store?
• What is the consumer definition of "loyalty?"
• What are the advantages for separating the truly loyal shoppers from the occasional shopper?
• How can retailers evolve beyond what shoppers view to be as providers of "discount" and "savings" cards? How can retailers expect loyalty from customers when they are not demonstrating loyalty to the shoppers?
• How do shopper cards influence attitudes toward spending? Because shopper card programs are so prevalent in the marketplace, are consumers inclined to buy any more than if they didn't use a shopper card?