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TheMobileBuzz

Mobile augments they would like to earn rewards from a broader range
of retailers in the future. Categories of interest include
shopper loyalty restaurants, convenience stores, pharmacies, shared-
economy services and online marketplaces.

"These new findings are particularly crucial for U.S.
retailers and merchants as they face multiple challenges,
including not only increased competition for customers but
waning consumer activity in existing loyalty programs,"
Logsdon noted. With competition intensifying, 13 percent
of respondents admitted they would switch brands or
shop at a different store if the opportunity to earn more
rewards or save more money were offered.
More behind the buy

In related research, Acosta Inc.'s The Why? Behind The
Buy explores the increasing influence of engagement in-
store and across channels on grocery shopper behavior
as consumers openly share shopping experiences and
ccording to the Road to Rewards Revisited annu- product information on social media. Steady sales growth
al report by Excentus Corp., certain types of in health-related products continues: 39 percent of
rewards have the power to influence where, grocery items purchased by millennials fit this category,
A when and how frequently people shop. Based compared with 25 percent for shoppers overall.
on a survey of over 1,000 U.S. consumers, the report also
emphasized the importance shoppers place on value "The experiential factor is driving today's shoppers
when making everyday purchase decisions. to make food choices rooted in what will bring them
personal satisfaction and enjoyment," said Colin Stewart,
Of respondents surveyed, 26 percent stated they shop Senior Vice President at Acosta. "As we head into 2017, it's
more frequently at stores where they can earn rewards, 17 important that brands and retailers think about how their
percent indicated they plan to take advantage of rewards product offerings contribute to grocery shoppers' positive
and promotions, and 14 percent said they only shop where experiences from the moment the item is spotted on the
they can earn rewards. store shelf to when it reaches their kitchen tables."

"For merchants and retailers, the findings are clear: Acosta's research revealed that grocery shoppers, in
loyalty programs that skimp on delivering everyday particular, are loyal to favorite stores. Nine in 10 shoppers
value are missing critical opportunities to attract new planned to continue shopping most frequently at the same
customers and retain existing ones, increase foot traffic, grocery retailers as last year. Factors cited in determining
and turn loyal shoppers into higher-value customers," shopper loyalty to individual stores included loyalty to
said Brandon Logsdon, President and Chief Executive certain brands carried (77 percent), trust in the brands
Officer of Excentus. offered (46 percent) and reputation for social responsibility
of brands offered (35 percent).
The report reinforced what marketers have acknowledged
in recent years: the growing influence of millennials and Another development cited was the growing influence
the mobile environment on loyalty program participation. of digital marketplaces on grocery shoppers, from
According to Excentus, nearly 40 percent of millennials promotions to expansion of product offerings. Of those
surveyed said they rely on mobile apps to track and surveyed by Acosta, 61 percent had redeemed digital/
redeem rewards; use of plastic membership cards dipped mobile coupons within the past month for grocery items,
4 percent year-over-year among respondents surveyed. 59 percent had ordered grocery items online, 53 percent
had received recipe ideas online prior to shopping in-store
"Mobile technology has and will continue to make it much and 19 percent had posted recipe content on social media.
easier, faster and cheaper to leverage loyalty programs,
particularly for the growing segment of consumers who "From online grocery ordering and a desire to explore
rely on their mobile devices for life's daily activities," new foods, to natural products and socially responsible
Logsdon said. brands, consumers are at the wheel when it comes to
steering the CPG [consumer packaged goods] industry
As to which type of rewards program ranked highest in a new direction," Stewart noted. "There's no doubt that
among consumers, 37 percent said they prefer fuel-saving this evolution will continue in the coming year, so it's up
discounts over credit card rewards, coupons, retail points to the industry to adapt by leaning into these trends and
and instant discounts at the POS. Respondents indicated building trust and loyalty among all shoppers."

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