Retail / news brief
Rewarded First-Time Shoppers 18% More Likely to Repurchase, Study Finds
New research from Bain & Company and Fetch Rewards shows that consumers who use a reward on their first purchase are 18% more likely to buy again within two quarters, and spend 28.4% more than those who don't.
The report, based on analysis of purchase data, highlights the impact of initial incentives on customer loyalty. Repurchase rates were highest in high-frequency categories: snacks saw a 51% return rate among rewarded first-time buyers, while dairy followed at 47%.
Even in lower-frequency categories like home improvement, where repeat purchase cycles are naturally longer, rewarded buyers generated a positive spending lift of 32%. The findings suggest that rewards can strengthen customer value across a wide range of product segments.
The study raises questions about whether brands are measuring loyalty program effectiveness correctly. By focusing on both repurchase rates and spending, the data indicates that first-purchase rewards can significantly influence long-term customer behavior.