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NORFOLK, Va. -- Customer loyalty programs mean big business, according to an independent research project using Outsite Networks Inc.'s consumer transaction database. The research project, conducted by Dr. Yuping Liu of Old Dominion University, was a follow up to the Aug. 14, 2003 analysis of Outsite's database.
The original project analyzed a 14-month period with 50,000 loyalty consumers and was based on 4.8 million transactions. The new study reviewed the growing database, which comprised 250,000 consumers and more than 30 million transactions in a 24-month period. The study confirms the earlier positive results from the company's loyalty and media system. Key findings show:
* The average loyalty member's total purchase frequency more than doubled from 1.79 times per month to 3.81 times per month.
* Average fuel transaction size of loyal members was 12.18 gallons versus 9.94 gallons for non-loyal members.
* Average store item transaction size for loyal members was $5.33 versus $4.66 for non-loyal members.
* The top 10 percent of loyal customers frequented the stores 7.43 times per month, averaged 16.08 gallons per transaction and $7.48 per transaction of store items.
* 40 percent of loyal fuel purchases are paid inside of the store and 39 percent included store items, while less then 30 percent of non-loyal fuel purchases were paid inside the store and only 20 percent included store items.
* 60 percent of loyal consumers have become double category buyers (fuel and store), while only 20 percent were double category buyers when they first joined the program.
* Between 1,000 and 2,000 consumers enrolled in the loyalty program per store.