Navigating consumer motivations and behaviors: Loyalty programs and value perceptions

Whether you’ve been paying attention to the news or just your budget for the last 18 months, you know inflation has been hitting spending power in every industry. As a result, value perceptions are driving consumers to find ways to help their money go further.

SMG recently released a cross-industry report analyzing the most current data around how loyalty programs + apps are influencing customers in today’s marketplace. Read on for the background information on what’s driving consumer behavior and insights that will help you respond.

Consumer spending and disposable income

First, let’s talk about a few financial trends from the last few years and a milestone you might not know about. While inflation had been stable since 2013, it started spiking in 2021, resulting in disposable incoming taking a hit. In fact, consumer spending surpassed disposable income in June 2021—a record-setting benchmark.

As inflation continued to increase through 2022, consumers started to take notice—Google searches for “inflation” even spiked in August of 2022 as customers went to the internet to educate themselves.

Loyalty membership means something different

With less spending power and more desire to spend, consumers will want a way to reconcile the two. This is where your loyalty programs and—if you were proactive—investment into customer-friendly apps and websites come into play. It’s interesting to note that once customers are engaged with an effective loyalty program, they act a little differently. For starters, customers who participate in loyalty programs indicate convenient locations as a driver to visit at a 5% lower rate than those not participating in loyalty programs, signaling they are more willing to go out of their way.

Plus, loyalty customers are 9 ppts more likely to return to your store.

Once you prove to customers that your app or loyalty program offers value, they truly will be more loyal!

Customers are looking, but for what, exactly?

You have a website. You may very well have an app. Each may have a number of features. But how are customers using these digital tools to interact with your brand? How can your app or website fit into your loyalty program? Most importantly, how can you keep customers clicking, swiping, and loyal?

Unlock insights with this report

To meet customer needs, you first have to know what they are. Fortunately, SMG’s data researchers have done the work for you. For insights on how customers are interacting with your apps and websites and what you can do to respond, download our Loyalty Programs and Value ebook, which examines some of the most recent data from the restaurant, retail, convenience store, and grocery industries.