Loyalty Programs Questioned

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Loyalty Programs Questioned

LOS ANGELES -- Hispanic households in Los Angeles, home to the largest population of Hispanics in the United States, are much less likely to belong to a frequent shopper program than non-Hispanics, according to new research from ACNielsen U.S., a sister company of Convenience Store News.

The research results were presented yesterday during the ACNielsen Category Masters client conference attended by executives from more than 500 consumer packaged goods companies.

The findings come from ACNielsen's exclusive 1,500-household Homescan Los Angeles Hispanic Panel.

The differences in frequent shopper program participation rates are especially pronounced among less acculturated Hispanic households. Only 52 percent of such households belong to a frequent shopper program, compared to 90 percent of non-Hispanic households. Among more acculturated Hispanic households, 75 percent belong to a frequent shopper program.

"If grocery retailers are going to succeed with this vitally important demographic group they need to focus their efforts on attracting the less acculturated Hispanics to their frequent shopper programs. Not only are they the largest segment of the Hispanic population, but our research shows that they also have a tendency to concentrate their purchases in a smaller number of stores than more acculturated Hispanics," said Ken Greenberg, vice president of Marketing for ACNielsen Homescan.

"Having them participate in a frequent shopper program would further solidify their loyalty as they and their future generations acculturate."