Families with children constitute the largest group of consumers with merchant or store credit cards — more than millennials, baby boomers, childless couples or high-income singles.
Specifically, 63% of this group own at least one of these cards, and almost 15% use them regularly. Traditionally, they most commonly use these cards at grocery retailers. By shopping regularly and with a higher purchase volume than other consumers, they can benefit from special discounts and rewards points to spend on other purchases or at other establishments. Brands have seen in this segment an opportunity to generate recurring sales and foster loyalty and have launched a series of benefits and promotions specifically for them.
“Leveraging Item-Level Receipt Data: How Personalized Card-Linked Offers Drive Store Card Usage,” a PYMNTS Intelligence and Banyan research collaboration on store and co-branded cardholders in the U.S., found 63% of families with children use this type of card to get discounts on products purchased regularly, and 53% do so to get rewards based on purchase history. This makes this customer group the one that most intensively uses the benefits and discounts associated with store cards.
In addition to retailers, product brands want to capture this opportunity and are offering specific programs for them. For instance, diaper company DYPER has launched a credit card and a rewards program for families. The new DYPER Card provides parents with benefits that include free diapers upon card approval and first purchase and points that can be redeemed for diapering products. To offer the card, DYPER has teamed with EarlyBird and with retail partners.
Furthermore, 48% of families with children get deal suggestions based on products purchased, which is a significant portion of the market to activate cross-sales offers. Taking this into consideration, Babylist launched early this year a dedicated health business that complements its marketplace for growing families. The new Babylist Health aims to provide easy and transparent access to health and wellness products during pregnancy, postpartum and when caring for a baby. It plans to expand to other products and services as well, according to the release.
Consumers want access to personalized discounts and rewards as a way to manage their spending, and this includes retailers but also brands. This presents an opportunity for brands and retailers to not only attract these cost-conscious shoppers but also to encourage the utilization of their store-specific or co-branded credit cards. The implementation of card-linked offers becomes a strategic avenue for businesses to engage with this particular demographic and potentially enhance the usage of their tailored financial products.
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