Participation in loyalty programs is on the rise, a sign that consumers are looking to make the money they spend work harder to stretch household budgets. Consumers clearly see the value in program participation and continue to leverage their activity seeking added value and using rewards to stretch dollars. According to Jupiter Research, more than 75 percent of consumers now have at least one loyalty card, and the number of people with two or more is estimated to be one-third of the shopping population. The greatest engagement increase is among 18 to 25 years old. This same group, were also most likely to enroll in rewards via new media mediums (social networking and text messaging).

Currently experiencing the upside of loyalty programs are Grocery and FoodService establishments such as Q Mart Marketplace, Albertson’s, Brookshire’s, H-E-B, and Winn-Dixie. In addition, Qdoba mobilized their loyalty program making activation easier and Wal-Mart has become more relevant to its Hispanic customers.

Brands, marketers and retailers alike have all been hard hit in this recession and are striving to find that silver lining within this never-ending storm. One thing we can all agree upon is that it is vital that we offer our customers a high level of service and convenience. Therefore, loyalty initiatives offered to customers who are eager to join programs, build relationships with their favorite brands and engage with new media channels may be our silver lining and the key to new revenue growth. Who doesn’t want to experience more frequent visits by regular customers, bigger average transactions, better margins and a stream of new faces drawn to attractive deals.