Battle of the bulge

At the cash register, you're informed of the cost of your purchase -- and then often asked to join the retailer's customer loyalty program.

Originating years ago at grocery stores, loyalty card programs have become a retail industry staple.

Plastic loyalty cards are deeply embedded in shopping. They offer retailers information about their shoppers and an avenue to communicate with them.

But at what point do we become saturated with the wide array of cards? How many can we stuff into our wallets?

"Having dozens of cards is a problem. Most people have an emotional limit as to how many cards they'll put in their purse or wallet," said George Rosenbaum, analyst at Chicago-based retail research firm Leo J. Shapiro and Associates Inc.

Loyalty programs differ by store but have the basic attributes of offering a discount, upgraded service or coupons. Many programs require shoppers spend a certain amount of money to earn a discount on their next purchase.

Shopper Lynne Olson prefers loyalty cards that provide instant savings, like those at the grocery store. The Winfield woman, who only has two loyalty cards in her purse, doesn't care for the programs that send coupons in the mail. "I don't use those coupons," she said.

Similar to many shoppers, the time-starved Olson doesn't have time to fill out the applications to join all the programs out there. "I'm in a hurry most of the time," Olson said while shopping at Woodfield Shopping Center last week.

"Building customer loyalty is more than having a card," said Neil Stern, a senior partner with Chicago-based McMillan Doolittle retail consultancy.

In order for a loyalty program to work, it has to strategically fit with the brand, add value and strengthen the relationship between the shopper and retailer, Stern said.

Simply presenting savings alone does not earn a shopper's loyalty, according to The Hartman Group Inc., a market research firm.

Many shoppers hold multiple cards. Well over half of today's shoppers own cards from two or more supermarkets, with 26 percent of shoppers possessing three or more grocer cards. "Given this, it would seem that a discount-only approach to a card program would not effectively foster consumer loyalty," according to a Hartman Group study.

Retailers are looking for ways to make their programs more attractive.

To help make wallets thinner, some retailers store phone numbers with member's information.

To best execute such a program, "it better be easy for the consumer," Stern said.

Some shoppers don't mind carrying the colorful cards. Avid shopper Anna Ekelman has signed up for dozens of loyalty programs.

Cards from Express, New York & Co., DSW, Shell and Binney's are just a few she takes shopping with her. "I just make sure I buy a big enough wallet to fit all the cards into," said Ekelman, 22, who hits the malls three or four times a week.

She said retailers send her coupons and notices about upcoming sales. "I definitely save money," she said.