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: coupons, points-based rewards, and cashback programs rank among the most popular types of loyalty programs in the United States. But what drives consumers to engage with such programs? And how can brands benefit from the marketing strategy?
Perks and savings that keep members coming back
Financial rewards, free shipping, and free products are customers' valued benefits in return for joining loyalty programs, as confirmed by a survey among e-commerce loyalty program members. But loyalty programs can also significantly impact how consumers perceive a brand. Members rank efficient and enjoyable digital experiences as a leading attribute of a strong loyalty program. For Gen Zers, feeling remembered by staff and being part of something ongoing are key drivers of brand loyalty beyond price.
Measurable returns for marketers
Most marketers worldwide consider loyalty programs to be a valuable tool and recognize that they generate a positive return on investment (ROI). The average perceived ROI has been climbing steadily in recent years. In the U.S., marketers dedicate almost 60 percent of their marketing budget to loyalty initiatives. Additionally, the vast majority of respondents in the U.S. reported being satisfied with their loyalty programs.
A value exchange that fuels long-term growth
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 want reward points they can exchange for special offers, members-only sale days, and early access to new products as exclusive perks of loyalty to their favorite brands. Â 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. When consumers lose that loyalty, the consequences are swift: the majority simply stop purchasing from the brand altogether, making retention efforts all the more critical.
Ultimately, the programs that resonate most pair tangible rewards with a sense of connection, as shoppers consistently cite high-quality products and feeling valued among the hallmarks of their favorite brands. For companies willing to invest in that balance, loyalty programs remain one of the most effective tools for turning occasional buyers into long-term advocates.
