The 32 key loyalty programs statistics in 2024

Customer acquisition is becoming increasingly expensive, so brand loyalty has become a crucial factor in maintaining profitability during times of economic downturn – we all understand it. However, we also know that during tough economic times, customers become more price-focused, relationships become more transactional, and loyalty programs must demonstrate their ROI impact rather than vaguely influencing long-term brand positioning. 

All of these factors make the loyalty market very complicated and challenging. To grasp its essence, we've collected key loyalty statistics and curated them to ensure the numbers tell the whole story.

Why follow statistics on loyalty programs?

Asking yourself if it’s helpful to follow statistics on loyalty programs is quite valid, even though seasoned marketers are fully aware that general statistics might not (and in most cases, shouldn't) be used as the one and only source of truth. 

These numbers, combined with more domain-specific lenses, can instead create a solid indicator of how to craft a loyalty strategy to meet short-term business objectives. Furthermore, they can serve as scalable methods to build long-term customer relations.

What are the statistics on loyalty programs?

You might wonder: what are the statistics on loyalty programs, and where do they come from

We promised to tell a story instead of throwing a bunch of numbers, and, since every good story is like a journey, we want to make a few stages of it:

First, we want to provide valuable insights into customer behavior and preferences. Analyzing these statistics lets you understand what motivates customers to join and engage with loyalty programs.

Second, some statistics can quantify the business impact of loyalty programs, demonstrating their ability to increase customer spending, retention, and lifetime value. This data informs decisions around program design, rewards structures, and personalization, which can optimize the program's effectiveness in fostering customer loyalty and satisfaction.

Third, statistics on loyalty programs help justify investments in loyalty initiatives and demonstrate their return on investment to company leadership. With concrete data illustrating the benefits of loyalty programs, companies can allocate resources strategically and confidently pursue initiatives to enhance customer loyalty and drive business growth.

Customer loyalty statistics & trends

Loyalty market overview 

The loyalty market remains strong, despite the economic downturn. Managers are determined to invest in enhancing the capabilities of their loyalty programs by blending transactional and experiential benefits, recognizing the urgent need to strike the right balance between price and experience.

1. The main loyalty marketing goals in 2024 are related to improving an overall CLV (56%), lowering customer churn (49%), and increasing purchase frequency (45%), according to 100+ loyalty experts interviews. (Open Loyalty)

2. The global loyalty management market size was estimated at USD 10.67 billion in 2023 and is expected to reach USD 12.07 billion by 2030, growing at a Compound annual growth rate (CAGR) of 9.2% from 2024 to 2030. (Markets and Markets)

3. 63% of executives in the US noted an uptick in their company's loyalty program budget, highlighting how businesses now perceive loyalty not only as a retention tool but also as a significant driver of growth. (PwC)

4. As cost-conscious consumers hop between sources seeking bargains, and with customer acquisition costs soaring by 222% over the last decade in the US, loyalty programs remain a topic of significant interest. (Deloitte)

5. 91% of US executives agree that their formal loyalty program should offer additional rewards or benefits for members. Moreover, differentiation is a target. Despite many executives highlighting the unique benefits of their loyalty program compared to competitors, 80% admit their program resembles others within their industry. (PwC)

6. The primary executive focus for fostering loyalty in the US entails prioritizing customer service (61%) and tailoring the customer experience (61%). (PwC)

7. By 2026, customer loyalty programs integrating transactional and experiential benefits will surpass those solely based on points, as per executives in North America and Western/Northern Europe. (Gartner)

8. Additionally, one in three businesses currently lacking a loyalty program will introduce one by 2027 to bolster first-party data collection and retain key customers, according to the group above. (Gartner)

9. In 2022, customers belonged to an average of 16.6 loyalty programs in North America and Western/Northern Europe. However, only 55% of loyalty program members are active in the programs they are enrolled in. (Gartner)

10. CMOs in North America and Western/Northern Europe plan to increase investment in loyalty program management by 41%. (Gartner)

11. The Pandemic was a breakthrough. Since then, more than 75% of US consumers have changed their buying habits, 39% have either changed brands or retailers, and 79% of those intended to continue exploring their options in the next normal. (McKinsey)

12. At the same time, the loyalty landscape was significantly impacted by the pandemic-driven surge in US e-commerce and supply chain disruptions, leading to a loyalty crisis. As empty shelves became common, three out of four US consumers explored new brands and stores. (Deloitte)

13. Gamification (32%), marketing automation (32%), and experience-based rewards (31%) will be invested the most in 2024 by loyalty managers, and predictive segmentation will be the focus in the 2-4 upcoming years. (Open Loyalty)

Customer loyalty drivers

The critical importance of delivering exceptional experiences to maintain consumer allegiance in a competitive market landscape cannot be overstated. However, the general term "customer experience" shouldn't be limited solely to customer service. It must also include product/service quality and good value for the price.

1. US executives and consumers align closely on factors influencing brand loyalty. Both prioritize product/service quality, reliability, and consistency (executives 46%, consumers 48%), as well as good value for the price (executives 42%, consumers 53%) as the foremost reasons, significantly topping their respective lists. (PwC)

2. 32% of US consumers revealed that they discontinued their usage or purchases from a business due to a negative encounter with customer service. However, this wasn't the top reason cited by consumers; instead, 37% indicated they departed following a negative experience with products or services. (PwC)

3. One-half of retail US executives expect consumers to value price over loyalty in 2024. (Deloitte)

Customer loyalty and ROI

Brand loyalty translates itself into very specific ROI, severely impacting overall business results. Loyal customers are not only willing to buy repeatedly from given companies, but they are also more likely to consider their prices reasonable in terms of the price-quality relation.

1. Over three-quarters of worldwide respondents (76%) said they would stop doing business with a company after just one bad experience. (Invoca)
   
   
2. U.S. providers face an enormous cost of USD 168 billion annually due to customer churn. (Callminer)
   
   
3. In the US, top-performing loyalty programs can boost revenue from customers who redeem points by 15% to 25% annually by increasing their purchase frequency, basket size, or both. (McKinsey)
   
   
4. 60% of US respondents are inclined to boost their buying habits, opt for their company over rivals, readily advocate for the brand, or invest more for loyalty perks or elevated loyalty status. (McKinsey)
   
   
5. When comparing top-tier loyalty programs to those in the bottom quartile, US consumers showed a 10% higher inclination to patronize the former, a 14% increase in purchase frequency, and a 12% greater likelihood of recommending the brand to others. (McKinsey)
   
   
6. More than 60% of US consumers state they are willing to pay a membership fee in exchange for exclusive benefits and an elevated experience. Of the consumers who pay loyalty membership fees, almost half pay for two or three loyalty programs. (Deloitte)
   
   
7. In the US, there is a strong correlation between brands perceived as offering the most reasonable prices and consumer trust. Trusted companies outperform their competitors financially by up to fourfold, and customers who trust a brand are 88% more inclined to make repeat purchases. (Deloitte)
   
   
8. Eight in 10 US retail executives from outperforming companies said their customer loyalty was well above the industry average over the past three years, compared to five in 10 underperforming companies. (Deloitte)

AI-powered personalization

Personalization is considered one of the main methods of building consumer loyalty, and Generative AI, with its capacity to generate tailor-made content at scale and in real-time, is growing into a significant booster of it. Yet, AI is only as good as the data that fuels it, and its utilization may be challenging. Customers, as much as they like a personal approach, are cautious about sharing their data; they may share it, but only with companies they trust

1. Behavioral segmentation becomes the foundation for creating personalized customer experiences, increasing 10 to 20% in US customer acquisition, 10 to 15% in long-term value and retention, and 20 to 30% in satisfaction and engagement. (McKinsey)
   
   
2. Over half of US consumers believe that loyalty programs offer sufficient personalization and that willingness to share personal information is rising – 53% of consumers said they are willing to share their personal information. (Deloitte)
   
   
3. Businesses worldwide are embracing artificial intelligence (AI) to provide personalized customer experiences, with 92% of companies using AI-driven personalization to drive growth. (Segment)
   
   
4. While 62% of global business leaders see customer retention as a top benefit of personalization, only 41% of consumers are comfortable with companies using AI to personalize their experiences. (Segment)
   
   
5. Only 51% of consumers worldwide trust brands to keep their personal data secure and use it responsibly, highlighting the critical need for transparency around AI and data privacy. (Segment)
   
   
6. 97% of global companies are now taking steps to address consumer privacy concerns, with investment in better technology to manage customer data being the most popular step. (Segment)
   
   
7. Gen Z has a high preference for AI-infused experiences, with 75% of surveyed Gen Zers reporting that they would stop using a brand if their experience isn’t personalized, compared to 66% for all consumers worldwide. (Segment)
   
   
8. 71% of US retail decision-makers have invested in data/AI-enabled content for personalization. (eMarketer)

Conclusion: loyalty statistics

As the loyalty market continues its dynamic evolution, spurred by shifting trends and the rise of hyper-personalization, we find ourselves at the cusp of another significant transformation.

While customers still value personalized experiences, they are increasingly mindful of costs. Nevertheless, the foundation of successful loyalty programs remains rooted in the delivery of exceptional products and services, which is made easier by using a solid customer loyalty program software.

These programs not only foster customer allegiance but also serve as invaluable channels for gathering first-party data. Leveraging this data, businesses can craft long-term loyalty strategies centered around personalized experiences, diminishing customer skepticism towards AI.

For deeper insights into these trends, consider exploring the comprehensive analyses provided by the Loyalty Program Trends 2024 report and the Top 100 Best Loyalty Programs benchmark report. Additionally, to discover innovative mobile loyalty program apps, check the curated list of the 10 best mobile loyalty program apps.

As businesses navigate these shifts, adapting their loyalty strategies accordingly will be paramount in nurturing enduring customer relationships within this ever-evolving landscape.