‘High-Tech’ Customers Want to Join Your Loyalty Program

More than half of tech-enthusiastic consumers see mobile apps and mobile pay as factors that would increase their spending.

April 12, 2022

Customer Using Loyalty Program App

NEWTON, Mass.—There is a correlation between technology adoption and eagerness to join loyalty programs or subscription services, according to a new report by PYMNTS and Paytronix.

The report finds that 60% of high-tech consumers participate in loyalty programs at quick-service restaurants (QSRs), and 75% do so at table-service restaurants, compared with average consumers who participate in them at QSRs (39%) and table-service restaurants (44%).

High-tech consumers own 11.8 devices on average and “have all the latest devices and incorporate smart home and activity tracking devices into their device ecosystems,” according to the report. Forty-two percent of consumers who fit this persona are millennials, and 60% are high-income consumers earning more than $100,000 annually.

Additionally, high-tech consumers are more aware of and eager to adopt subscription programs, with 40% being “very” or “extremely” familiar with restaurant subscription services, exceeding the 21% average for the general sample surveyed. High-tech consumers interested in subscription services also are much more likely to enroll in subscription services at both QSRs and table-service restaurants (61%) than the sample average (50%).

“Restaurant loyalty programs deepen already strong relationships between brands and existing customers. Many of these valuable consumers are eager to try subscriptions, a development that has strong potential for both table-service restaurants and QSRs,” said PYMNTS and Paytronix in the report. “Restaurants that adopt these initiatives—both loyalty programs and subscriptions—will be best positioned to succeed in today’s competitive era of dining.”

High-tech customers see mobile apps (56%) and the ability to pay online (57%) as factors that would lead them to increase their spending, while loyalty and rewards programs motivate a greater share of high-tech consumers (51%) than average consumers (37%) to spend more.

A recent Harvard Business Review study on loyalty programs found three takeaways for loyalty programs. NACS Magazine dove into loyalty programs and how they can provide convenience retailers with critical consumer insights and a competitive edge.