Marketing

Most internet households signed up for free loyalty programs

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May 2, 2024

A hefty number of internet households, 77%, are participating in free loyalty programs, according to a Park Associates' consumer study of 8,000 U.S. internet households.

Nearly half of those programs are grocery store loyalty programs, 45%, and 42% are credit card loyalty programs, according to a press release on the findings.

"Entertainment, convenience, resources, and discount/value are primary value propositions for subscription and membership services," Elizabeth Parks, president and CMO, Parks Associates, said in the release. "Many services offer a combination of value propositions — the right mix of benefits will depend on the customer target. We will continue to see consumer service providers partner and bundle various services to add value and stickiness to their offering."

Free loyalty programs can serve as an on ramp to paid memberships, according to the release. For example, according to the study, Best Buy's loyalty program started as a free reward service, and the retailer built it up to a tiered membership program. Target will be the next retailer to migrate from a free to paid membership program with Circle 360, according to the report.