New York—As recent retail earnings reports show, consumers are being quite discerning about spending their dollars. Loyalty and rewards programs are a proven way for retailers to spur interest in shopping.
In a new survey of affluent consumers released this week by the Luxury Institute, wealthy shoppers earning at least $150,000 a year share are just as enthusiastic about loyalty and rewards programs as their mass market counterparts.
Affluent Women Like Rewards’ Free Gifts
Overall, 72% of wealthy consumers participate in some kind of loyalty program, with the most popular ones connected to credit cards, airlines, hotels and grocery stores. Men are significantly more likely to be members of airline and hotel rewards programs, while women are disproportionately represented in programs sponsored by grocery stores, drugstores and department stores. Previous Luxury Institute research has shown that Sephora, American Express and Amazon are the top three favorite rewards programs among affluent consumers.
“Loyalty Programs combined seamlessly with one-to-one customer relationship building can be highly effective in driving conversion and retention while making data collection easier,” said Luxury Institute CEO Milton Pedraza.
Very few respondents say that they belong to a luxury brand rewards program. The main perceived benefits of luxury brands’ loyalty programs are special offers and rewards, earning and redeeming points, and free goods and services. Free gifts carry more importance among women, shoppers under 50, and those with net worth less than $1 million.
Satisfaction with existing loyalty programs is high and most high-income shoppers say that they have had positive experiences with their memberships. The vast majority of shoppers report that loyalty programs exert a strong influence over purchasing decisions. www.LuxuryInstitute.com.