These days, it seems like every major retailer has their own membership program. To encourage shopper loyalty, retailers offer members-only perks like discounted products, fast & free shipping, and exclusive sales. But what do we know about the actual impact of these membership programs? Who’s signing up, and how are the programs affecting their spending habits?
Numerator collects verified retailer membership data for three of the nation’s largest retailers: Walmart, Amazon and Target. Unlike self-reported membership participation data, verified retailer membership data adds a layer of authentication, allowing for a deeper analysis of purchase behaviors among those with verified, active retailer memberships. Read on as we dive into the details around Walmart+, Amazon Prime and Target Circle 360 membership, uncovering their distinct demographics, spending pattern impacts, and potential areas of exploration for brands and retailers.
Comparing Amazon Prime, Target Circle 360 and Walmart+ members
With a lower annual membership costs and expansive physical store presences, both Walmart+ and Target Circle 360 appeal to different cohorts of consumers than Amazon Prime. For both Target and Walmart, membership tends to magnify demographic and geographic skews already seen within their core shopper bases.
- Demographic Factors: Compared to Amazon Prime members, Walmart+ members tend to have lower incomes and larger households. Target Circle 360 members skew younger, more affluent, and more diverse than Walmart or Amazon’s members, and they are significantly more likely to have children.
- Geographic Affinities: Walmart+ and Target Circle 360 members predominantly reside in regions where their stores have strong physical roots, while Amazon Prime members are more evenly distributed across U.S. regions and urbanicities. For Walmart, this means a more rural membership base in the South Atlantic, West South Central, and East South Central divisions, while Target members skew urban and reside in the Pacific, Mid-Atlantic and West North Central regions.
- Online Shopping Behaviors: Although Amazon maintains a stronghold as the top online retailer in the U.S., Walmart+ and Target Circle 360 members are more likely than Prime Members to make weekly online purchases, buy in bulk online, or use subscription or auto-replenishment services. These online behaviors are especially high among Target’s membership base.
There is also a high overlap between Walmart+, Target Circle 360 and Amazon Prime memberships. Over four-fifths (83%) of known Walmart+ members also have a Prime membership, slightly behind Target Circle 360 members, 86% of whom have a Prime Membership. Even further, nearly a third (31%) of Target’s membership base also hold both Walmart+ and Amazon Prime memberships. Conversely, some households simply do not seem inclined to participate in any retailer membership programs, evidenced by high levels of crossover between non-members of each program.
Membership Impact on Spending Habits
Retailer memberships like Amazon Prime, Target Circle 360 and Walmart+ have a notable influence on consumer spending, shaping shopping behaviors both in-store and online. Amazon Prime members outspend the average Amazon shopper by 12% annually, and Walmart+ members spend 76% more than the average Walmart shopper—31% more in-store and 206% more at walmart.com. Target Circle 360 members show the most dramatic boost at their chosen retailer, spending nearly three times more than the average Target shopper, both in-store and at target.com.
Retailer memberships also result in a higher share of wallet at their respective retailers, though this is more prominent with Walmart and Target members than Amazon Prime members. Examining the top two retailers among each membership group, Walmart+ members spend 26% of their dollars at Walmart and 12% at Amazon; Target Circle 360 members spend 17% of their dollars at Target and 14% at Amazon; and Amazon Prime members spend 15% at Walmart and 13% at Amazon.
Category Boosts from Retailer Memberships
Most Amazon shoppers have a Prime membership, and as a result, Prime members generally purchase the same categories on Amazon as the average shopper. However, a smaller portion of Walmart and Target shoppers hold their respective retailer’s memberships, and their category spending is notably different than the retailers’ average shoppers.
Walmart+ shoppers purchase core CPG categories like grocery, pet, and baby from Walmart and walmart.com much more frequently than the average Walmart shopper. Members spend over a third (38%) of their dollars in these categories at Walmart, nearly two times higher than the average Walmart shopper. Similar trends are seen with Target Circle 360 members, who are much more engaged at Target across the board, particularly in CPG sectors like grocery, health & beauty and baby. Target’s members spend almost a third (30%) of their Target dollars on grocery items, nearly double that of the average Target shopper (17%).
Grocery delivery services also appear to be a widely-used benefit of Walmart and Target’s membership programs. Walmart+ members are four times more likely to have used Walmart’s grocery delivery services in the past year (81% vs. 20% of all Walmart shoppers), and Target Circle 360 members are eight times more likely to have used these services (82% vs. 10% of all Target shoppers).
Potential Areas of Exploration
As businesses navigate the evolving landscape of retailer membership programs, several avenues for exploration emerge:
- Consumer Insights: Dive deeper into consumer panel data to uncover the impact and exposure of your brand or category among Amazon Prime, Target Circle 360 and Walmart+ members.
- Retail Strategy: Evaluate the implications for your retail outlets—especially online banners and delivery services—by assessing the overlap between Amazon Prime, Target Circle 360 and Walmart+ members and your core shopper base.
- Member Engagement: Leverage custom surveys to gain insight into the primary benefits driving new memberships, retention, and membership lapsing.
- Cross-Promotional Opportunities: Identify brands and categories with high affinities among Target Circle 360, Walmart+ or Amazon Prime members to explore potential promotional collaborations.
Interested in learning more about Numerator’s single-sourced, verified retailer membership data and how it can help you boost business? Reach out to your Numerator representative or get in touch with our team today.
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Analysis contributed by Kristen Bennett (Senior Consultant, Numerator Retail Team) and Chris Foong (Senior Consultant, Numerator Retail Team)
