"Loyal" Customers Still Wary of Store-Issued Credit

77% of shoppers report holding some kind of customer loyalty card, but only 40% report using store-issued credit cards. FGI Research asks: why the discrepancy?

We have all had the experience of checking out at the grocery store, pharmacy, or bookstore, and having the cashier ask whether we are part of the store’s customer rewards program. If we answer “no,” the next question is, inevitably, whether we want to join. New data from an FGI Research study indicate that over three-quarters of consumers say “yes” to this second question: that’s how many respondents report that they hold some kind of customer loyalty card, whether or not they also use a store-issued credit card.

And it’s no wonder that so many do. More and more companies offer rewards for customer loyalty. Not only retail outlets but hotels, restaurants and airlines use rewards as a way of promoting business and retaining customers. There are even online applications, like SCVNGR, which encourage consumers to build their own rewards programs.