Research: PunchTab study shows how Hispanic shoppers engage with loyalty programs
What: PunchTab released the results of a study concerning how Hispanic shoppers engage in social conversation around loyalty and reward programs.
Why is it important: By understanding which loyalty program topics are most prevalent and how shoppers are engaging, marketers can implement pinpointed programs to increase engagement and amplify positive word-of-mouth at every stage of the purchase process (says Angela Sanfilippo, CMO at PunchTab).
Multi-channel loyalty and engagement platform PunchTab recently shared results concerning a study of over 500 Hispanic loyalty program members, offering valuable insights into how this high-value audience segment engages in social environments with reward programs (Sears Shop Your Way, Walgreen's Balance Rewards, for instance).
According to such study, about 19.3 percent of posts are pre-purchase, and the majority of the pre-purchase conversations revolve around wanting to join a loyalty program or waiting for approval.
Also, nearly two-thirds of Hispanic shoppers' social posts regarding loyalty programs (62.8 percent) take place after a purchase has been made, and surprisingly, as much as 20 percent of the conversation around loyalty programs comes from non-members.
Only 17.9 percent of posts happen as people are making purchases or receiving rewards, but still, the study reveals that this is high-value conversation, as the majority of such posts involve promoting savings received, free gifts and bonuses earned, or overall purchasing experience while using loyalty cards.
Hispanic shopper loyalty posts frequently tout the brand, the promotion or the rewards: positive word-of-mouth (30 percent), sharing promotions (12.1 percent), points or rewards awards (11.4 percent), advocating for the loyalty program itself (7.5 percent).
The study also reveals that over one-third of all the social conversation around loyalty programs is sparked by a brand's marketing campaigns and content. Brands' engagement campaigns (dedicated hashtags, contests, etc.) can spark a great deal of conversation around loyalty programs. This presents an enormous opportunity for brands to continue to raise awareness within the Hispanic market by way of timely social initiatives, such as holiday or back-to-school campaigns, that leverage social, email and SMS campaigns and encourage social sharing.
Says Angela Sanfilippo, CMO at PunchTab, that "almost half of Hispanic shoppers use social media during the purchasing process, and our research shows that many of these posts relate to loyalty programs."
Source: Market Watch.