ZipLine Study Links Rewards to Store Revenue

Company will launch new rewards program in spring 2018

PORTLAND, Maine -- A new study by ZipLine, a provider of private-label debit mobile and card payments to the convenience-store industry, shows that consumers who join payment-powered loyalty programs spend more and visit more frequently. 

In the 2017 ZipLine Purchase Lift Model Study, consumers who joined one of ZipLine’s payment-as-loyalty programs showed an overall 35% lift in both transactions and fuel gallons sold. It also indicated that among customers who join a private-label debit loyalty program, 83% become active users.

Participating convenience-store operators saw chainwide increases of:

  • An average of four visits per member per month, compared to three visits during the first month of program implementation
  • An average of 44 gallons per member per month, compared to 33 gallons
  • An average $93 spent per member per month, compared to $70

The heaviest participants in the loyalty program, called “Super Adopters,” showed a 135% increase in purchasing above their initial purchasing behavior.

Building on the findings of the study, ZipLine will introduce a new program, ZipLine Rewards, in spring 2018. This program will provide retailers with next-level technologies, including mobile technology, to give customers relevant rewards that motivate loyalty and, in turn, could increase sales.

“Online, retailers can easily track when people shop and what they shop for. By replicating the data-driven models online retailers employ, convenience-store operators can create personalized shopping experiences for individual customers. This is the future of loyalty programs,” said ZipLine CMO Kristin Bailey. 

For example, customers who regularly grab lunch on the go could be rewarded with an expanded selection or a sweet treat at checkout. “The key is to identify consumer interests by analyzing their behavior patterns, then to deliver something more than they’d ever expect,” Bailey said.

Debit cards now represent 70% of all payment cards and will continue to grow in use, according to Business Insider. Mobile payments, powered by debit cards and loyalty programs, could rise by a compound annual growth rate of 80% from 2015 to 2020.

For the study, ZipLine analyzed historical data for 165,000 members enrolled from January 2015 to December 2016. Read the full report here.

ZipLine, established in 2004, offers private-label debit card and mobile payment solutions to retailers, aiming to help retailers increase customer loyalty and sales. Its experience spans multiple industries, including grocery, pharmacy, convenience and retail fuel. ZipLine’s clients include retailers such as 7-Eleven, Circle K, Citgo, Cumberland Farms, Irving and others. The company has headquarters in Portland, Maine, and a location in Coconut Creek, Fla.

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