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05/12/2014

Top 10 Retail Loyalty Programs

Millennial spending accounts for over $600 billion a year, and as 18- to 33-year-olds enter their peak earning years that number is expected to continue to rise. With so much revenue on the table, forward-thinking retailers are devoting themselves to capturing a piece of the Millennial pie and building lifelong loyalty.

A key tool in the retailer toolbox for building Millennial allegiance is the loyalty program. PunchTab released two research reports on Millennial shopping patterns and loyalty program usage. The reports surveyed over 1,000 Millennials and rank the top 10 fashion and accessories loyalty programs among Millennial men and women and offers a glimpse into the powerful segments buying habits.  

Top 10 Fashion and Accessories Loyalty Programs for Millennial Woman:
  1. Victoria's Secret
  2. Kohl's
  3. Target
  4. American Eagle
  5. Gap/Old Navy/ Banana Republic
  6. DSW
  7. Sears/Kmart
  8. Express
  9. Dick's Sporting Goods
  10. Macy's/Marshall Field's
Top 10 Fashion and Accessories Loyalty Programs for Millennial Men:
  1. Kohl's
  2. Dick's Sporting Goods
  3. Target
  4. Macy's/Marshall Field's
  5. Republic/Piperlime/Athleta
  6. Sears/Kmart
  7. American Eagle
  8. Sports Authority
  9. Express
  10. Nike
 
Key findings from the report:

Peer Review. Millennials put a lot of stock in the opinions of their peers. 96% say user-generated content plays a part in their purchasing decision.
Brand Research. When Millennials are looking for information about a brand their top five destinations are:  online shopping site, friends and family, brand website, Facebook and online deal sites.
Loyalty Membership. 74% of Millennial women and 52% of millennial men are members of at least on fashion and accessories loyalty program.
Active Audience. 64% of women and 42% of men are active in at least one retail loyalty program. Women were most active participants in Victoria's Secret, Kohl's, and Target. Men were most active in Kohl's, Target, and Dick's Sporting Goods.
Driving Engagement. For women the number one reason for engaging in a loyalty program is: "I love shopping there and would shop there even without a rewards program. For men: "It's easy to participate."
Losing Interest. The number one reason for not being active in a rewards program was the same for both men and women: "I only shop there occasionally so I don't expect to earn very many points."
Millennial Women love to Shop. 47% of millennial women show twice a month, compared to 36% of non-millennial women.
Incentivizing Feedback. Only 29% of Millennials will answer retailers' polls and surveys ­without an inventive— that number jumps to 60% when some sort of monetary incentive is offered.
What They Want. When asked what they want form a loyalty program 51% or Millennials rated exclusive access to events and products as the most desirable type of reward.