Global Market Landscape- US

Part
01
of five
Part
01

United States Loyalty Programs Per Household

As of 2017, the average number of loyalty programs per U.S. household was 18, but only 8.4 were active. This information has been added to the attached spreadsheet and more information on our findings is below.

Average number of loyalty programs per U.S. household

  • According to research conducted by the Colloquy Loyalty Census, the average U.S. household has enrolled in 18 different loyalty programs.
  • Of those 18 loyalty programs, the average U.S. household is actively using 8.4.
  • This means that an average of 9.6 loyalty cards are currently inactive (188.4).

Average number of loyalty programs per Person

  • In 2018, Hawk Incentives found that each person in the U.S. has enrolled in an average of 6.2 loyalty programs, of which 3.9 are active.
  • American millennials enroll in loyalty programs and actively use them at a higher rate than the American public in general.
  • Millennials have enrolled in an average of 6.5 loyalty programs, of which 4.2 are active.

Additional information on U.S. loyalty programs

  • According to the Colloquy Loyalty Census, "U.S. consumers hold 3.8 billion memberships in customer loyalty programs."
  • Approximately $48 billion in reward points and miles are issued to loyalty program members every year.
  • Of that $48 billion, at least 33% go unredeemed.
  • Only 24% of shoppers use their earned rewards and 43% say their rewards expire before they can use them.
  • Another 38% of shoppers never know when they have rewards available.
  • Baby boomers have the lowest loyalty program participation rate at 25% compared to 29% for generation X and 41% of millennials.
  • In 2016, 74% of loyalty program members belonged to a supermarket or grocery store loyalty program, the highest percentage of any category.
  • About 53% of loyalty program members cite "easy to use" as their primary reason for participating in a program.

Research Strategy

Using a variety of official studies on U.S. loyalty programs, we were able to find statistics for both household averages and individual consumer averages. In one case, for the Colloquy Loyalty Census, we were unable to download the official report due to the requirement of a business email address, but we were able to pull the report's statistics from a reputable blog post from Macorr Research Solutions. This report was conducted in 2017, therefore the blog also has to be from 2017 or later. All other statistics were taken directly from research documents or articles that discuss these results from reputable research studies.
Part
02
of five
Part
02

Amazon Prime Penetration: United States

The penetration rate of Amazon's Prime service among U.S. Amazon customers is 62%. The penetration rate of Amazon's Prime service among U.S. households is 51.3%. Those findings are also included in the attached spreadsheet.

findings

  • Sixty-two percent of all U.S. Amazon customers "are [Amazon] Prime members."
  • That 62% equates to 101 million U.S. Amazon Prime members.
  • The estimated percentage of U.S. households that are members of the Amazon Prime service in 2019 is 51.3%.
  • That 51.3% equates to 63.9 million U.S. Amazon Prime-member households.

your research team applied the following strategy:

To determine the penetration of Amazon's Prime service in the U.S., we looked for articles that discuss (1) the percentages of U.S. Amazon customers that use the Prime service and (2) the percentage of U.S. households that use the Prime service. With regard to (1), we found and used an article published by Digital Commerce 360, which included that information. With regard to (2), we found and used an article published by PYMNTS, which included that information. Together, those articles provided us with all the information we needed to determine the penetration of Amazon's Prime service in the U.S.
Part
03
of five
Part
03

Financial Transactions: United States

After an exhaustive search, we used data from the year 2017 as the 2018 data is yet to be released by the Federal Reserve Bank. In 2017, the total number of cash, credit, debit, checks, and EFT transactions were 30.3%, 21%, 26.2%, 17.7%, and 8.9% respectively. We have filled these details in the attached spreadsheet, rows 6-11, and columns C-D.

TOTAL NUMBER OF CASH TRANSACTIONS

  • 30.3% of transactions in the US are in the form of cash. Most cash transactions are used to make smaller value purchases. The average dollar amount of cash transaction is $23.

TOTAL NUMBER OF CREDIT TRANSACTIONS

  • 21% of transactions are via credit cards.

TOTAL NUMBER OF DEBIT TRANSACTIONS

  • 26.2% of transactions in 2017 were via debit cards.

TOTAL NUMBER OF CHECKS TRANSACTIONS

  • 17.7% of financial transactions were via checks.

TOTAL NUMBER OF EFT TRANSACTIONS

  • 8.9% of transactions in the US are electronic payments. Though they are the least commonly used, they are often used for large value purchases. Electronic payments account for almost a third of the value of total payments.

Part
04
of five
Part
04

Credit and Debit Cards: United States

By 2018, the average number of credit card per person was 2.5 and the average number of debit card per person was 4.1. The requested information has been added in the attached spreadsheet, rows 13-14, column C-D of the 'United States' tab.
  • The average number of credit cards per person: 2.5 (Q3-2018).
  • The average number of debit cards per person: 4.1 (2018).
Part
05
of five
Part
05

Credit Card Interchange Fees: United States

The average interchange fee in the US is around 1.8% for credit cards. This spreadsheet and the research brief below contains the details of our findings.

CREDIT CARD INTERCHANGE FEES IN THE US


Sources
Sources

From Part 05
Quotes
  • " In the United States, the average interchange rate is around 0.3% for debit cards and 1.8% for credit cards. "
Quotes
  • "The average interchange rate for a credit card payment is around 1.81%, while the typical interchange for debit cards is 0.3%."