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The benefits of integrating a credit card with a loyalty program stretch further than revenue from interest payments and savings on fees. Compared to customers without a store card, customers with credit cards visit stores 1.4 to 1.7x more often and increase incremental sales between 36% and 86%. Additionally, credit card programs enable stores to leverage data on consumer habits for marketing purposes.

L2’s Insight Report: Loyalty Programs finds that department stores, home brands, apparel and accessories, are taking advantage of this trend, while the beauty, sportswear and watches & jewelry brands are not doing so at all. Department stores have been especially active; all in the study offer a credit card. On a price point basis, prestige brands are more likely to offer a credit card than luxury, mass or aspirational brands.

Retailers have also capitalized on consumers’ preference to earn points outside of the store. Two-thirds of credit cards are unrestricted.

 

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