Drug store loyalty program membership up 88%

CINCINNATI — U.S. consumers hold 3.3 billion memberships in customer loyalty programs, the 2015 COLLOQUY Loyalty Census shows, a 26% increase over the number of memberships reported in COLLOQUY’s last census study in 2013. Drug store memberships rose 88% to 268 million, the highest rate of growth of any census category other than restaurant programs (107%). And drug store activation rates rose to 66% in the 2015 census versus 50% in 2013, while other retail and credit card program activation rates were mostly flat. 

 

COLLOQUY’s biennial report on the scope of U.S. customer rewards programs, released Thursday, shows that American households hold memberships in 29 loyalty programs spread among the retail, financial services, travel and various other economic sectors, but are active in just 12 of them.

 

The corresponding household membership figures in the 2013 census were 22 and nine. Those numbers add up to a drop of two percentage points in the active membership rate, from 44% to 42%, a 4.5% decline. That marks the beginning of a trend as the active rate declined for the first time in the 2013 report. An active member generally is defined as one who earns or redeems at least once a year.

 

The 2015 loyalty census shows that specialty store loyalty memberships now total 434 million, exceeding airline frequent flyer memberships (356 million) for the first time, and placing second only to credit card reward programs, which account for 578 million memberships. Specialty retailers, such as Best Buy and The Container Store, concentrate on selling one line of goods to a particular clientele and offer narrow but deep selections in their niches.

 

In other retail sector highlights, grocery program memberships declined for the second consecutive census, with memberships dropping at twice the rate in 2015 (2%) compared with 2013 (1%). The rate of decline in fuel/convenience store programs slowed significantly to minus 3% in 2015 from minus 21% in 2013.

 

“Think of the U.S. loyalty market in terms of a crowded party where half of the party-goers are standing in the corner without mingling,” said Jeff Berry, COLLOQUY research director and census report author. “Companies and brands that understand the key touchpoints in the relationship pay attention to how best customers respond and optimize the overall experience can turn the party up so that people will join in the fun and never want to leave.”