Consumer Behavior

Majority of consumers joining loyalty programs

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February 16, 2024

A hefty number, 85%, of consumers are joining loyalty program and gift cards are fast becoming the ticket to driving customer loyalty.

Those are top findings from the 21st Annual U.S. Prepaid Consumer Insights study from Fiserv, that also revealed incentive and loyalty programs are the prime reason 55% of consumers buy gift cards for themselves.

Additional findings include:

• Consumers said that gift card spending is bouncing back, with 69% of consumers purchasing the same amount of gift cards or more in 2023 compared to 2022. This was accompanied by increases in purchasing (40% of purchasers are putting at least $50 on gift cards, a 33% increase from 2022) and total spending (79% of consumers say they spend more than a gift card's worth at a retailer).
• While banking, purchasing and even some credit cards have gone completely digital, consumers are hesitant to give up on physical gift cards. In fact, consumers are split 50/50 in their preference between digital and physical cards. Why? 63% of consumers that prefer digital say the biggest reason is the convenience of immediate delivery; while 85% of consumers preferring physical are looking for a tangible gift to give.