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The Green Sheet Online Edition

February 11, 2013 • Issue 13:02:01

Research Rundown

The role of restaurant rewards programs

Loyalogy, an analytics consultancy and loyalty program provider for the restaurant industry, released the results of its first annual LoyaltyPulse study of U.S. consumer attitudes and behavior toward restaurant rewards programs. For the study, Loyalogy surveyed 1,124 consumers across the United States and analyzed responses to a range of questions covering participation in restaurant rewards programs, the appeal of different reward program benefits and likely visit rate changes spurred by such programs.

"The LoyaltyPulse study provides clear evidence directly from consumers regarding the effectiveness of restaurant rewards programs and the value associated with using the rewards program data to tailor and target guest e-mail communication," stated Dennis Duffy, President of Loyalogy.

Following are survey highlights regarding consumer preferences:

    Would like a single card that is honored at multiple restaurant chains 73 percent
    Would recommend a restaurant that offers an appealing rewards program 65 percent
    Don't mind carrying a rewards card in their wallets 60 percent
    Average visit rate increase for those enrolled in rewards programs 35 percent

Other findings from the survey revealed consumers prefer a simple reward program enrollment process initiated at the restaurant and completed online after consumers leave the restaurant. Four out of five of those surveyed prefer a rewards program that offers a clearly defined proposition in which they earn points for rewards, rather than a program primarily based upon periodic, surprise free items.

Additionally, 10 percent of respondents said they had paid a fee to join a restaurant rewards program; 50 percent reported they would be willing to pay a fee to join a restaurant rewards program if the program offered sufficient value.

For more information about the LoyaltyPulse study, visit



Consumers still wary about online shopping

A survey of U.S. online consumers asked individuals about their online shopping habits and perceptions about issues faced when shopping online. Analysts found security to be the top concern among online shoppers interviewed, which is consistent with results found in similar surveys in this category.

Online shopper perceptions and issues

Source: 1&1 Internet Inc. online shopper survey

Positive case for data analysis

In the white paper Data Analysis Points the Way Forward for Card Management Teams, prepared jointly by The Members Group and data analysis partner IQR Consulting, the case for data analysis as a major component of maintaining cardholder loyalty is presented, along with a discussion that dispels common misconceptions, among them the belief that data analysis solutions are cost-prohibitive for financial institutions.

Younger consumers prefer debit

Auriemma Consulting Group research revealed debit cards are the primary payment method for 49 percent of younger consumers under the age of 35, and for 45 percent of those in older age brackets. Forty-four percent of younger consumers reported "they had no interest in using credit cards as their main method of payment." Cash payments placed second as the primary form of payment method with 27 percent of those under age 35, and 23 percent of the overall population.

Cash payments reign

A Mercator Advisory Group report, Consumers and Cash: A Love Story, explores how moving from cash transactions to electronic payments represents "one of the few net new growth opportunities for retail financial institutions and tightens revenue streams for governments." The report also highlights the current value of consumer cash payments in the United States, two primary demographic segments of cash usage and what stakeholders can do to aid the transition.

end of article

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