According to a recent NRF Consumer View survey, 89% of 3,000 U.S. adults currently shop at discount retailers. Furthermore, today’s discount retailers have the power to create some of the most loyal followings when paired specifically with excellent in-store service experiences and up-to-date technological innovations. Two industry frontrunners include Old Navy — who earned the highest customer loyalty ranking among single-fashion retailers, and Kohl’s — who won the top loyalty ranking among multi-brand fashion retailers, according to the latest Foursquare Loyalty Index.
By analyzing data collected from the foot traffic patterns of millions of Americans participating in its always-on panel, the Foursquare report measured customer loyalty activity taking into account criteria including visits per customer, brand-specific frequency, and a "fanaticism threshold," defined as “the number of visits within a year required for a customer to be considered within the top 1% of those who visit a particular brand,” according to Retail Dive.
Essentially, the data concludes that in order to successfully land the “perfect” deal or discount, consumers will tirelessly return to the same stores time and time again — also known as “Thrill of the Hunt” shopping. Interestingly enough, it also suggests that the aesthetic and essence of these chaotic discount retail environments “may actually add to consumers’ sense of excitement (and overall shopping experience),” according to Retail Dive. “Moreover, it makes these brands immune, in large part, to e-commerce and online competition from the likes of Amazon.”
Learn more about Foursquare’s discount retailer report here.