Loyalty Program Statistics & Trends You Need to Know in 2024

Delivering customer loyalty is non-negotiable, and there is more competition than ever. Consumer expectations have soared, and businesses that aren’t focusing on customer retention are failing to optimize free traffic and referrals with higher conversion possibilities. This results in billions of dollars of yearly losses in the US alone. 

Why Should Businesses Consider Loyalty Programs?

The digital age has created a new kind of consumer, making shopping more accessible and varied than ever. In this competitive market, businesses must do more to attract and retain customers, leading to a rise in specialist loyalty solutions designed to help acquire new customers and build on existing relationships to create sales opportunities and increase business value.

Improve customer relationships:

Loyalty programs foster stronger connections with customers, leading to increased brand advocacy and deeper emotional bonds.

• Over 70% of consumers are more likely to recommend a brand with a good customer loyalty program (Bond Brand Loyalty).
• Customers loyal to a brand spend 67% more than those who aren’t. (Business.com)
• 59% of American consumers say they’re loyal to a brand for life (Acquia).
• 75% of American consumers are more likely to be loyal to brands that understand them on a personal level (Acquia).
• 61% of customers think brands should use personal information more thoughtfully to predict customer needs. (Exploding Topics)
• Around 7 in 10 global customers feel loyalty toward at least one brand or company (Zendesk).
• The average American consumer belongs to 16.7 customer loyalty programs (Bond Brand Loyalty).
• 84% of consumers are more likely to stick with a brand that offers a loyalty program than one that does not. (Queue-it)
• 68% of customers in loyalty programs feel brands better understand their buying preferences. (Queue-it)
• 60% of consumers say they have a higher emotional connection with brands whose loyalty program they are part of (LoyaltyLion).

Revenue uplift:

By implementing effective loyalty programs, businesses can significantly boost customer retention, enhance customer relationships, and drive substantial revenue growth.

• 65% of a company’s revenue comes from repeat business of existing customers. (Semrush)
• 63% of consumers are prepared to modify their spending habits to maximize the benefits of a loyalty program. (Paylode)
• Members of loyalty programs generate 12-18% more incremental revenue growth per year than non-members (Exploding Topics).
• 80% of a company’s future revenue will come from just 20% of its existing customers. (Gartner)
• A 5% increase in customer retention correlates with at least a 25% increase in profit. (Harvard Business Review)
• The overall profitability of a business can increase by 25-125% when its churn rate is reduced by 5%. (Churnkey)
• After implementing a retail loyalty program, the average order quantity of a business can rise by 319%.(Extu)
• 95% of consumers with retail subscriptions who feel close to brands say they will purchase more products from them. (Queue-it)
• The top-performing loyalty programs boost revenue from customers who use them by 15-25% annually (LoyaltyLion).

Increase customer lifetime value:

Customer loyalty programs offer businesses immense potential, opportunity, and value. Loyal customers are less likely to choose a competitor. Loyalty solutions engage customers with both your brand and product, proving that incentives and rewards can build a brand customers trust and recommend repeatedly.

• 84% of consumers are more likely to stick with a brand that offers a loyalty program (LoyaltyLion).
• 77% of consumers with retail subscriptions buy more products from the brands they have relationships with. (Queue-it)
• Customers engaged in a brand’s loyalty program spend 12-18% more each year. (Coniq)
• 71% of consumers who are members of loyalty programs say membership is a meaningful part of their relationships with brands. (Forbes)
• 48% of consumers want brands to start winning their loyalty from the first purchase.
• Customers with an emotional relationship with a brand have a 306% higher lifetime value. (Motisa)
• 3 in 4 customers will switch brands for a better loyalty program (LoyaltyLion).

Personalization makes you popular:

Personalization tailors the customer experience to individual preferences, boosting engagement, satisfaction, and loyalty by showing customers that their unique needs and desires are understood and valued. This leads to higher customer retention and increased spending.

• 82% of customers feel more positive about a brand after engaging with personalized content.
• 64% of consumers expect companies to respond and interact with them in real-time. (Salesforce)
• Businesses not engaging their customers are 54% more likely to lose out to a competitor (LoyaltyLion).
• 71% of customers expect companies to deliver personalized content. (Sender)
• 66% of consumers say encountering content that isn’t personalized would stop them from making a purchase (Sender).
• Personalization can reduce customer acquisition costs by up to 50% (Sender).
• 49% of Gen Z are less likely to shop with a brand that offers an impersonal experience (Sender) 
• Consumers spend 38% more on average when an experience is personalized (Adam Connell)
• 80% of frequent shoppers purchase only from businesses that tailor their experience (Sender).
• 66% of people express frustration when a company’s shopping cart isn’t synchronized with their mobile apps (Sender).
• 5% of brands believe they offer personalized experiences, but only 60% of consumers agree (Emplifi).

Elevate customer experiences with a loyalty program:

Offering customers personalized content and exclusive experiences relevant to them significantly enhances their experience with your brand or shopping mall, making them more likely to spend more and stay longer.

• 66% of consumers are willing to share personal data to enhance their customer experience (Emplifi) (Emplifi).
• Customers are 50% more likely to choose a competitor who better satisfies their needs. (Forbes)
• Customer experience drives over two-thirds of customer loyalty, surpassing brand and price combined (Gartner) (Emplifi).
• 80% of customers say they are more likely to do business with a company that offers personalized experiences (Epsilon)
• 52% of customers expect offers to be personalized and relevant. (Forbes)
• 62% of consumers are willing to spend more if their shopping experience is customized. (Accenture)
• 87% of Americans will gladly give up some privacy for an excellent customer experience or reward (LoyaltyLion).
• 87% of consumers consider user reviews and ratings to be the most authentic interaction with brands (Emplifi).
• Receiving value during a service interaction increases the likelihood of sharing positive word of mouth by 97% and wallet share by 86% (Gartner) (Talon.One).

Drive customer acquisition:

While customer acquisition is essential, leveraging already engaged customers is an easier and more cost-effective way to grow sales. Loyal customers are more likely to recommend your brand and bring in new business.

• The global loyalty management market size will grow from USD 6.47 billion in 2021 to USD 28.65 billion by 2030 (Fortune Business Insights).
• Customer acquisition costs 6-7x more than retention marketing. (Forbes)
• Customer acquisition cost (CAC) for B2C companies has risen by almost 50% in the last five years.
• A 7% increase in brand loyalty can lead to an 85% increase in customer lifetime value. (Forbes)
• Your chances of selling to a new customer are between 5% and 20%, whereas that chance rises to 60% or 70% for existing customers. (Semrush)
• Loyal customers make purchases 90% more frequently. (Hubspot)
• Businesses in the US lose $136.8 billion annually to poor customer retention (LoyaltyLion).

Benefits of Coniq’s platform include: 

• On average, Coniq Clients experience an ATV uplift of 5% – 30% in loyalty program members. VIA Outlets recently experienced a 26% ATV uplift.
• Coniq clients convert between 15% – 30% of existing database shoppers to loyalty program members. 
• Coniq clients see an increase in foot traffic, usually ranging from 5% – 20%, by implementing a retail loyalty program.

Read more of our customer success stories here