New Mintel research sheds light on customer-loyalty program relationship
CHICAGO Instant gratification translates well among customers that seek incentives for their participation in loyalty programs, according to new research.
Mintel found nearly half (47%) of consumers surveyed said that instant redemption opportunities motivated them to use a particular loyalty program more than others. Such incentives as cash-back opportunities would be a deciding factor, 36% of respondents said.
Mintel also suggested that personalization of redemption opportunities, since most customers are brand loyal, as well as easy-to-redeem savings, can expand customer reach and drive up sales.
"In any sector that utilizes loyalty marketing, loyalty programs are fast becoming a very important part of the relationship with the customer," said Susan Menke, VP and behavioral economist at Mintel Comperemedia. "It seems that now is the time to focus on adding or improving loyalty programs to help engage customers and maintain, and even grow, their relationship with the post-recession consumer."
Dollar Tree completes purchase of Dollar Giant assets
CHESAPEAKE, Va. Dollar Tree on Wednesday announced that it has completed its purchase of the assets of 86 Dollar Giant stores for approximately $52 million in cash, plus the assumption of certain liabilities.
This marks Dollar Tree’s first expansion of retail operations outside of the United States.
Based in Vancouver, British Columbia, Dollar Giant stores offer a wide assortment of general merchandise, contemporary seasonal goods and everyday consumables, all priced at Canadian $1.25 or less. The stores average 9,000 gross sq. ft. and operate in British Columbia, Ontario, Alberta and Saskatchewan.
"We now have an outstanding platform for significant expansion in Canada, with an experienced team of management and associates,” stated Bob Sasser, Dollar Tree president and CEO.
Dollar Tree operates 4,009 discount variety stores across 48 states. The company is one of the few operations in the dollar channel that literally sells everything for $1 or less.
Deloitte consumer spending index drops in October
NEW YORK — Soft housing prices drove down the Deloitte consumer spending index for the month of October, Deloitte said Wednesday.
The index, which is comprised of four components — tax burden, initial unemployment claims, real wages and real home prices — fell to 4.63%, from an upwardly revised gain of 4.84% a month ago.
But Deloitte said that the drop is no reason to give up hope on the holiday season.
"Despite the index’s recent weakness, there are signs that consumers are starting to shake off their long-term austerity in time for the holiday season," said Alison Paul, vice chairman and retail sector leader at Deloitte. "Recognizing there is still fierce competition for consumers’ wallets this season, retailers should be ready to capture the consumer’s interest with renewed focus on their exclusive items, personalized service and targeted promotions."