A Loyal Nation: ACNielsen study: Frequent-shopper programs proliferate.

Participation in grocery store frequent-shopper programs has grown to 66 percent of U.S. households, up from 55 percent in 1997 and 35 percent in 1996, according to a new study by ACNielsen, Schaumburg, IL.

The study found that loyalty program members spend significantly more money per shopping trip than non-members, and retailers are getting the message, adding programs at an unparalleled rate, says ACNielson senior vp-marketing Robert Tomei.

Just how much program members spend per shopping trip compared with non-members varies by retailer, but it is not unusual for cardholders to spend two to three times more, according to the study.

A geographic analysis of household participation shows that the top five loyalty markets are Chicago (where 97 percent of households participate in at least one program), Phoenix (95%), Denver (92%), Charlotte (91%), and Los Angeles (53%). The bottom five markets are Houston (52%), San Antonio (18%), Columbus (17%), Miami (10%), and St. Louis (10%).

Loyalty programs apparently influence where shoppers choose to do their business. “People prefer to do something proactive to save money. Handing the cashier a frequent-shopper card feels more tangible than the promise of everyday low pricing,” says Tomei.

However, retailers who think their programs are creating exclusive customers are barking up the wrong strategic tree: 57 percent of households using frequent-shopper programs are involved in two or more; seven percent participate in four or more.

ACNielsen’s study included responses from nearly 41,000 households.