Loyalty programs provide consumers with special discounts, and they give retailers loads of data on shoppers’ habits and preferences. So why are supermarket loyalty membership numbers falling? And why has one major grocery company pulled the plug on its loyalty program?
In the grand scheme of things, customer loyalty programs seem to be rapidly on the rise. According to a study by the research firm Colloquy, the number of U.S. loyalty program memberships grew by 26.7% from 2010 to 2012. Last year, Americans had a collective total of 2.65 billion loyalty program memberships.
But the study reveals that these programs may not be quite as ascendant as they initially appear. “Even though the average number of loyalty programs per U.S. household has grown to 21.9 (up from 18.4 in 2010), only 9.5 of those memberships – less than half –are currently active,” the report states.
To read the rest of the story, please go to: TIME