Building loyalty: Retailers are seeking to boost membership in their loyalty programs by offering participants unique discounts. While that type of initiative isn’t new, it’s particularly effective as consumers grow more value-oriented. In the past few months, 20% of shoppers seeking to save money at the grocery store have signed up for a free loyalty program, and 9% have enrolled in a paid membership program such as Walmart+ or a BJ’s membership, per our September survey conducted with Bizrate Insights.
- Some merchants are offering discounts on a specific item. For example, members of Lidl’s free myLidl program can buy a frozen turkey for 49 cents per pound.
- Others are leveraging rewards to build long-term loyalty. For instance, Walmart is offering Walmart+ members access to over $1,000 in Walmart Rewards offers on hundreds of items.
The big takeaway: Inflation has reduced consumers’ brand loyalty. While this inflationary environment may be temporary, discount retailers have the opportunity to create positive experiences for customers that could translate into lasting loyalty.
Go further: Explore other tactics retailers can take in our Grocery Inflation report.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.