A. Guttmann
Research Lead covering media
Loyalty programs and marketing in the U.S. - statistics & facts
The ongoing effort to win over customers is an inescapable aspect of a brand’s life. In the face of a turbulent economy, attracting customers and keeping them loyal have become even more crucial. For that, a great product or service is key. However, other factors come into play: For instance, according to 2024 survey, the majority of Americans consider the offer of loyalty programs very or somewhat important when choosing a brand. But what drives consumers to engage with such programs? And how can brands benefit from the marketing strategy?
Loyalty programs: What do consumers expect?
Consumers value free shipping and larger discounts or free products in return for joining loyalty programs. A 2024 poll showed that small discounts on everyday purchases and early access to sales are also considered attractive benefits. Clearly, perks and rewards are a must. But loyalty programs can also significantly impact how consumers perceive a brand. The majority of customers surveyed in the U.S. in 2023 report that a loyalty program makes them generally or far more positive to a brand. For Gen Zers and Millenials, the offer of such programs influences their decision to continue doing business with a brand.Do loyalty programs drive results?
Most marketers worldwide consider loyalty programs to be a valuable tool and recognize that they generate a positive return on investment (ROI). According to 2024 survey, one-third of professionals report that loyalty programs generate five to seven times more revenue than what they cost. Additionally, seven out of 10 respondents in the U.S. are satisfied with their loyalty programs. The satisfaction drivers are various: Professionals who oversaw, managed, or contributed to a customer loyalty program mentions its foster deeper engagement with customers, drives repeat sales, and differentiates the brand from competitors.Win-win for consumers and brands
Undoubtedly, loyalty programs influence how customers establish relations with a brand or company. Such programs work best when both sides find what they are looking for. Consumers appreciate instant wins, big prizes, and attractive discounts. All that drives sign-ups and encourages purchases. For brands, loyalty programs also mean having a larger and more faithful customer base, a stronger brand connection, and increased engagement.
