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Cardholder Loyalty Dependent on Debit, Credit Rewards, Study Finds
A new study by Valuedynamx, a leading global provider of curated, data-driven omnichannel purchase rewards and part of Collinson, has reported that consumers prefer to use debit and credit cards to earn rewards when they shop. These findings can help organizations in the retail and financial services sectors better understand how to structure and manage effective reward programs that drive loyalty, spending, and engagement.
Survey respondents were asked about their debit and credit card use. The study found the most popular and strategic rewards (e.g., cashback, loyalty points) present a significant opportunity for banks and card issuers to attract and retain cardholders.
“As a result of ongoing global economic challenges the last few years, we are witnessing a transformation in how people shop, how they stretch and maximize their dollars, which cards are top of wallet and what they expect from their card programs. The rise of personalized rewards, strategic partnerships, experiential perks and other incentives is no surprise as people want to ensure they are getting their money’s worth for each and every purchase—and will adjust their shopping behaviors to do so,” says Kelli Hobbs, VP, Head of US Business Development at Valuedynamx.
92% of surveyed individuals have at least one debit or credit card, meaning co-branded credit/debit cards can give brands a large advantage in attracting new consumers. 83% of cardholders have at least one debit card and 74% of cardholders have at least one credit card (average: 2 cards). Respondents have said they will most likely participate in more credit card purchases than debit card purchases.
“Card loyalty is present, but fragile,” added Hobbs. “People are open to switching from their current favorite debit or credit card to one that offers better, more budget-friendly rewards. Financial institutions that want to attract, engage and keep loyal cardholders need to prioritize enhancing their reward programs—including focusing on cashback and points/miles features and building strategic partnerships with loyalty reward organizations to create marketing opportunities that can more directly engage shoppers and optimize program spend by ensuring people are rewarded for making certain purchases.”
Hanna Andersson Has Launched Its First Loyalty Program
Hanna Andersson, a Swedish children’s clothing brand, is launching its first-ever loyalty program in time for the new school year.
Hanna Rewards will reward shoppers with one point for every dollar they spend at the brand. Customers can then cash in 125 points for a $10 reward. The program also includes early access to sales, new product launches, and exclusive access to limited-edition drops such as $5 pajamas. New members also get free shipping from the time of sign up until Dec. 1, plus they will earn 200 points when they sign up.
CEO Aimée Lapic says this rewards program has made the business “much more profitable.” Today, it continues to grow via targeted marketing and partnerships, including an upcoming collection with the animated series “Bluey.”
Creating a Hanna Andersson loyalty program has been one of Lapic’s priorities since she joined the company in 2022. “One of the things we need to do is continue with this digital transformation, and a loyalty program is front and center in terms of what digital capabilities DTC companies should have in terms of driving retention,” Lapic, who previously helped build a subscription loyalty program for GoPro, told Modern Retail. In addition, “we want to get feedback from some of our loyal customers, and this is a phenomenal way to build that community,” she said. “The loyalty program will also help Hanna Andersson collect different types of data points on its customers. Right now, Hanna Andersson has access to what customers buy, but not why they buy it. That is something the loyalty program can help with, and “it’s a big difference,” Lapic said.
Walmart Leverages AI-Powered Assistant to 50K Employees
Brands all over the world are assessing how Artificial Intelligence (AI) can improve business operations. Walmart, the global retailer, has joined a growing group of large U.S. enterprises to equip its workers with AI technology customized to the brand’s internal systems.
50,000 employees will have access to this new technology via desktop and mobile app interface within Me@Campus, the company’s employee app. The tool can accelerate draft writing, act as a creative partner or summarize large documents, according to Walmart.
“Generative AI can help us work faster and more efficiently, but it also has limitations: it lacks judgment, has a limited understanding of context and is only as good as the data it’s trained on,” says Donna Morris, EVP and chief people officer at Walmart, and Cheryl Ainoa, EVP, new businesses and emerging technologies at Walmart, in a LinkedIn post Wednesday. “For out-of-the-box, truly brand-new thinking – that’s what humans are good at.”
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