Welcome!

News Feed Item

Merchant Warehouse Uncovers Missed Opportunity for Retailers This Back-to-School Shopping Season

Survey Finds Consumers Want Loyalty Programs, but Few Offered by Retailers for Back-to-School

BOSTON, MA -- (Marketwired) -- 07/08/14 -- Back-to-school shopping is the second largest retail event of the year, only behind holiday shopping. However, businesses are failing to use loyalty programs in order to take full advantage of the $72.5 billion back-to-school shopping opportunity, according to findings from a new study, conducted in June 2014 by payment technologies leader, Merchant Warehouse. The missed back-to-school loyalty opportunity could impact retailers' sales later in the year, too, as consumers admit the stores they shop at for back-to-school items are also top-of-mind for the holiday shopping season.

Merchant Warehouse surveyed more than more than 100 small business owners and managers that sell "back-to-school" items and more than 700 back-to-school shoppers in June 2014. While 85 percent of shoppers noted that they tend to shop at the same retailers year after year for back-to-school, an overwhelming 91 percent noted they are "somewhat likely" (65 percent) or "very likely" (26 percent) to switch their choice of retailer if a promotion or reward applies. Meanwhile, only 34 percent of retailers plan to run loyalty programs for back-to-school shopping this year.

During Back-to-School, Lower Prices Win Consumer Loyalty
Most shoppers surveyed reported they buy items at the same retailers during both the back-to-school and holiday shopping seasons, with 58 percent shopping at a majority (60-100 percent) of the same stores for both. Shoppers indicated that price is more important to them during the back-to-school season when compared with other times of year; 53 percent of consumers list it as their biggest determining factor in where to shop and 66 percent said they are likely to sign up for a retailer's loyalty program during back-to-school shopping if offered a discount at the checkout. In fact, consumers look for these incentives, as 45 percent stated they're more driven to shop at a retailer based on their sales, discounts, or promotions during the back-to-school shopping season versus other times of the year.

Retailers Recognize Back-to-School Loyalty Opportunity, but Fail to Capitalize
A majority, 58 percent, of retailers surveyed believe loyalty campaigns would benefit their business during the back-to-school season, although only 34 percent plan to run a program this year. In fact, 97 percent of retailers that ran back-to-school loyalty campaigns last year had positive experiences and plan to run one again this year. So why are others missing out on this opportunity? The most common reason reported was that loyalty programs have not been beneficial to the business in the past, with 25 percent selecting this response. However, of those conducting loyalty campaigns this back-to-school shopping season, 65 percent are taking advantage of data-tracking and analysis (such as purchase data or demographic information) technology within loyalty programs to boost the benefit to customers specifically interested in purchasing back-to-school items.

"Small businesses are challenged with vast competition in attracting back-to-school shoppers that will directly and positively impact their bottom line," said Jenn Reichenbacher, senior director of corporate marketing, Merchant Warehouse. "It's alarming that so many small business retailers are missing out on valuable loyalty programs that can help them keep existing customers coming back throughout the year and even year after year. Consumers have said that they're willing to be loyal to businesses year-round based on the business' back-to-school offering, presenting a key opportunity for small business owners and managers to employ loyalty programs this year to keep customers coming back through the holiday season and next year as well."

Other Key Findings Include:

  • Technology is not holding retailers back: 18 percent of businesses surveyed report they will not run a loyalty campaign during this back-to-school season because their business lacks the required technology resources.
  • Most retailers (56 percent) plan to execute loyalty campaigns over email this back-to-school shopping season.
  • Retailers are warming up to the mobile opportunity: 24 percent of retailers planning to run back-to-school shopping loyalty campaigns will implement those via a mobile app.
  • Consumers ranked plastic loyalty/rewards cards as the most preferred method of redeeming promotions or rewards and paper punch cards as the least preferred method.

For more information on Merchant Warehouse and these survey findings please visit: Business Back-to-School Survey Findings | Consumer Back-to-School Survey Findings.

About Merchant Warehouse
Merchant Warehouse is a leading provider of payment technologies and merchant services. The company's solutions enable merchants to more effectively connect and engage with their customers regardless of how, where or when they choose to shop. Merchant Warehouse's flagship technology solution, the Genius™ Customer Engagement Platform™, supports both traditional and new payment types, including mobile commerce, from a single countertop acceptance device.

Merchant Warehouse offers innovative payment solutions that help online and brick-and-mortar retailers, as well as point-of-sale (POS) developers, value-added resellers (VARs) and agents, strategically grow their business. Merchant Warehouse is one of the fastest growing payment technology companies in North America. For more information on Merchant Warehouse, visit merchantwarehouse.com.

PR Contacts
Anna Farnum or Kevin Leahy
617-945-1915
genius [at] launchsquad [dot] com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.