Automatic rebates increase shopper spending an average of 25%, according to research from coalition loyalty marketer Vesdia Corp.

Vesdia’s four national programs give rebates to members when they buy participating brands or use a program credit card. Rebates are automatically deposited in a savings account for college (BabyMint), retirement (NestEggz), investment (StockBack) or donations (FundraiserRewards).

Vesdia tested rebates across seven retail formats among 10,000 members of its StockBack program, who earn rebates on purchases made with a StockBack Visa card. Half the group got a 2% rebate from retailers who aren’t regular StockBack participants; the other half, the control group, got no additional incentive (but earned their standard rebate for all purchases on their StockBack Visa cards). The offer was issued via direct mail and e-mail to test-group members.

The test group spent between 12% and 44% more over the course of 10 months (see chart). Housewares stores saw the biggest gain (44%), followed by home improvement stores (39%) and office supply stores (25%).

“Retailers who participate in a coalition program see several behavioral changes among consumer members,” said Vesdia CMO Bill Koleszar. “They draw new customers, which brings incremental market share from competitors. Members’ average purchase and average number of visits increase. So retailers get higher purchases per visit, and more visits.”

Vesdia tracked market-share take away for an electronics retailer, whose market share jumped 58% (to a 49% share from a 26% share) in its first 12 months as part of Vesdia’s program, Koleszar said.

Atlanta-based Vesdia also runs 15 brand-specific loyalty programs for marketers.

Separately, Vesdia has affiliated its four national programs with Score Rewards Network, which aggregates loyalty programs to give consumers more choice and simplify execution for marketers. The deal is part of Vesdia’s agreement to buy a number of loyalty marketing patents from Newhall, CA-based Source, Inc., which runs Score Rewards Network.

Automatic rebates increase shopper spending an average of 25%, according to research from coalition loyalty marketer Vesdia Corp.

Vesdia’s four national programs give rebates to members when they buy participating brands or use a program credit card. Rebates are automatically deposited in a savings account for college (BabyMint), retirement (NestEggz), investment (StockBack) or donations (FundraiserRewards).

Vesdia tested rebates across seven retail formats among 10,000 members of its StockBack program, who earn rebates on purchases made with a StockBack Visa card. Half the group got a 2% rebate from retailers who aren’t regular StockBack participants; the other half, the control group, got no additional incentive (but earned their standard rebate for all purchases on their StockBack Visa cards). The offer was issued via direct mail and e-mail to test-group members.

The test group spent between 12% and 44% more over the course of 10 months (see chart). Housewares stores saw the biggest gain (44%), followed by home improvement stores (39%) and office supply stores (25%).

“Retailers who participate in a coalition program see several behavioral changes among consumer members,” said Vesdia CMO Bill Koleszar. “They draw new customers, which brings incremental market share from competitors. Members’ average purchase and average number of visits increase. So retailers get higher purchases per visit, and more visits.”

Vesdia tracked market-share take away for an electronics retailer, whose market share jumped 58% (to a 49% share from a 26% share) in its first 12 months as part of Vesdia’s program, Koleszar said.

Atlanta-based Vesdia also runs 15 brand-specific loyalty programs for marketers.

Separately, Vesdia has affiliated its four national programs with Score Rewards Network, which aggregates loyalty programs to give consumers more choice and simplify execution for marketers. The deal is part of Vesdia’s agreement to buy a number of loyalty marketing patents from Newhall, CA-based Source, Inc., which runs Score Rewards Network.