What Loyalty Programs Should Know About Republicans
and Democrats
Consumers appreciate rewards from the brands they shop, and their political affiliations influence where and how they spend. Should loyalty programs get involved in politics?
Is your reward program a donkey or an elephant? And if you know, what should you do about it?
It’s a highly timely question, because consumer preferences—even for loyalty programs—differ along political lines, according to 2024 polling data by CivicScience. Key to the findings: 77% of Republicans most likely prefer free reward programs; just 23% choose paid plans. Democrats, however, lean toward paid programs—51% are for them, while 48% more likely use free programs.
Here is the breakdown of these preferences across three types of paid membership plans:
- A one-time fee in return for smaller discounts on all purchases: 23% of Democrats and 7% of Republicans prefer this option.
- A one-time fee for larger discounts on a set number of purchases: 15% of Democrats and 10% of Republicans say “Yea.”
- A recurring fee for larger discounts on all purchases: Just 13% of Democrats and 6% of Republicans buy into this plan.
What does this say about each party’s propensity for brand loyalty? And, more importantly, should it suggest that companies market based on political factors? The question is significant, especially now, as young (under 30) voters might be more motivated by issues than candidates, according to an NPR report.
It’s Been Tried Before: Political Tests In Consumer Loyalty
Back in 2004, the Democratic National Committee introduced a loyalty-like affinity credit card that enabled cardholders to contribute 1% of their purchases to the party. The committee solicited several hundred thousand supporters after testing the platinum Visa issued by Providian Financial, the New York Times reported.
Those card transactions would have provided keen insights on Democrats’ purchasing behaviors, but it’s unclear if the concept succeeded; Providian sold to Washington Mutual in 2005.
And the Republican National Committee, which trialed a similar card during the 2000 presidential election, tabled the program because of changing campaign finance laws.
Should Your Brand ‘Lean’ In? Lessons From Disney And Bud
If brands are interested in soliciting elephants or donkeys for their reward programs, they could first learn a lot from a mouse. As in Mickey.
In 2022, Disney World criticized legislation signed into law by Florida Republican Gov. Ron DeSantis that prohibits discussion about gender identity and sexual orientation in some elementary schools (the Parental Rights in Education Act).
In response, DeSantis and Fox News hosts started calling the company “Woke Disney,” and Florida Republicans passed a law to revoke Disney World’s self-governing status. A legal fight ensued (since settled).
In response, some consumers publicly boycotted Disney, which might have reduced the park’s attendance potential. In 2022, more than 17 million people visited Disney World. That’s up from 12.7 million in 2021, when people slowly emerged from the pandemic, but still short of the 21 million who attended in 2019, Statista reports.
Other brands have fared worse from political backlash. Take Bud Light: After transgender influencer Dylan Mulvaney promoted the No. 1 beer brand on social media in 2023, sales plummeted thanks to a conservative-led boycott.
Anheuser-Busch, maker of Bud Light, tried to backtrack by announcing two marketing executives had left the company, but this effort drew criticism from liberals and members of the LGBTQ community. Instead of making peace, Bud made more protestors.
A year later, in the first quarter of 2024, Anheuser-Busch’s sales to U.S. retailers dropped by 13.7%, according to Yahoo Finance. Sales to U.S. wholesalers declined by 10.7%. As of this July, Bud Light fell in ranking to No. 3, behind Modelo Especial and Michelob Ultra, USA Today reported.
Where’s The Party? Other Brands That Republicans, Dems Prefer
Then, some companies simply appeal more to right- or left-leaning consumers. Take these examples from the marketing tech firm Stirista, which surveyed 2,000 likely 2024 voters.
- Democrats are less prone than Republicans to shop Walmart, yet it is their most commonly shopped store, followed by Target, Aldi and Costco. (The research does not specify whether this means a larger percentage of their customers are Republican.)
- Of Republicans, 73% shop Walmart and just 29% shop Target, making them the least likely of all party groups to shop the latter. Target experienced a backlash in 2023 for carrying a broad collection of LBGTQ+ merchandise in support of Pride Month. In 2024, it reduced the number of stores carrying the merchandise.
- A quarter of Democrats regularly shop Trader Joe’s, compared with 16% of Republicans.
- For meals and refreshments, Democrats hit Starbucks and Chipotle more than Republicans, who prefer Chick-fil-A, Black Rifle Coffee and Cracker Barrel.
But heck, there are plenty of other retailers and brands that tend to fall along political lines, based on a younger, more diverse population’s preferences and causes. Patagonia, the pro-conservation retailer, is among the “most Democratic-viewed” companies, according to an Axios survey. Hobby Lobby is rated “very good” by Republicans.
Republican shoppers also deem Kroger as reputable, perhaps because it’s mum on social issues, according to other Axios findings. But Republican social media ads filter out voters who shop organic-leaning Whole Foods Market,Voice of America reports.
What Does This Mean For Loyalty Initiatives And Data?
Should these consumer values be applied to loyalty program strategies? The correct answer isn’t “yes” or “no,” because that isn’t the right question.
Social or political values shouldn’t influence a reward program’s structure; the program’s reason for existence should.
Instead, reward program operators should ask (and answer) these five questions:
- What is our reward program’s purpose? Is it to improve a segment of the business or deepen engagement with a core group of customers? The program’s messaging, marketing and rewards proposition should exist to serve this purpose.
- How can all our customers benefit from the program? Are there spots in the program’s data pipeline that can be strengthened to better identify specific consumer-group needs?
- What else should the program be doing for our customers? Is the program investing too many resources in gaining new members at the expense of caring for existing ones?
- What kind of data would serve our program members better? While analyzing the data pipeline, reward program operators should also look for what’s missing. These are opportunities. For example, what does the data reveal about the effects of economic and social stress?
- What can we do to help customers who like our products, but might have different social values than those of our brand, feel welcome? Communicate, but don’t dictate. A reward program can convey a company’s values (offer an option to donate points to a variety of causes, for example) without being preachy.
These types of questions transcend politics because they help position a loyalty program as a uniter, not a divider. Whether members align with the elephant party or the donkey party, or both, a good loyalty program can reward its members without feeding the animals.pics. Yes, what they wear and eat can make millions of dollars for companies, but they are still earthly heroes, though perhaps draped in gold, silver and bronze.
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This article originally appeared in Forbes.
Forbes.com retail contributor Jenn McMillen is nationally renowned as the architect of GameStop’s PowerUp Rewards, and is Founder and Chief Accelerant of Incendio, a firm that builds and fixes marketing, consumer engagement, loyalty and CRM programs. Incendio provides a nimble, flexible and technology-agnostic approach without the big-agency cost structure and is a trusted partner of some of the biggest brands in the U.S.