Julia Faria
Research lead covering advertising and marketing
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 and can often be a highly competitive business. While the pandemic changed consumer needs and preferences, the ongoing turbulent economy added to the challenge of attracting customers and keeping them loyal enough to choose a brand over others. Undoubtedly, building brand loyalty starts with a great product or service. However, consumers want more: According to a late 2022 survey, seven out of 10 Americans considered loyalty programs a leading factor in securing their loyalty towards their favorite brands. The same poll revealed that over 50 percent of U.S. shoppers were likely to increase their participation in loyalty programs. But what is driving consumers to engage with such programs? And how can brands benefit from the marketing strategy?
However, loyalty rewards program membership and usage are two different phenomena. On average, U.S. consumers belong to 16.6 such programs but actively use only half of them. Perhaps the time and effort it takes to obtain a reward help to explain the low active usage rate – most adults interviewed in 2022 mentioned that as something they disliked about loyalty programs. From the brand and company side, the issues seem to have been already recognized. Over nine out of 10 executives surveyed in the United States in 2022 agreed that their loyalty programs should provide customers more rewards or benefits.
Loyalty programs: What consumers expect?
Six out of 10 consumers in the United States wanted discounts in return for joining loyalty programs, according to a 2022 study. Nearly the same share of respondents expected to earn points and rewards and around one-third of U.S. consumers found exclusive or early access to products valuable. Clearly, perks and benefits are a must. But loyalty programs can also enhance the emotional connection between brands and customers. Around half of the participants of another 2022 survey reported having joined a loyalty program simply to express their devotion to a brand or company.However, loyalty rewards program membership and usage are two different phenomena. On average, U.S. consumers belong to 16.6 such programs but actively use only half of them. Perhaps the time and effort it takes to obtain a reward help to explain the low active usage rate – most adults interviewed in 2022 mentioned that as something they disliked about loyalty programs. From the brand and company side, the issues seem to have been already recognized. Over nine out of 10 executives surveyed in the United States in 2022 agreed that their loyalty programs should provide customers more rewards or benefits.
Winning loyalty to secure sales and brand connection
Loyalty programs influence how customers establish relations with a brand or company. According to an April 2022 survey, 79 percent of Americans mentioned that such programs impact their likelihood to keep doing business with a brand. The share was slightly higher among Gen Z shoppers. Additionally, 80 percent of U.S. consumers said they purchased more frequently from a brand when joining its loyalty program. 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, so businesses reap the rewards of having a larger and more faithful customer base, a stronger brand connection, and increased engagement.
