Statistics is an important practice which can help us gain a better understanding of humans and the world. It helps inform perspectives, predictions about the future, and decisions in all areas of life. By collecting and analysing data, we can identify trends, patterns, and relationships that would be invisible to the naked eye.
In this article we will focus on loyalty related statistics. The aim is to inform your perspective of loyalty programs and give you a snapshot of consumer behaviour. The statistics you will see have been sourced from articles and studies conducted within the past two years across multiple regions.
What the statistics stress is the importance of getting your loyalty program right. If you want to ensure a successful result, don’t go it alone, hire loyalty consultants.
The case for getting your program right…
For a loyalty program to be effective, it must be well-designed and implemented, including offering great value for members.
40% — the number of consumers who would remain loyal to brands that provided extra value other than product/price (a 67% YoY increase).
110% — the YoY increase in consumers citing “the ability to understand me as an individual” as a factor of brand loyalty. [1]
- Related article: “Why personalisation is essential to customer loyalty”
In relation to members of top-performing loyalty programs:
75% – changed their behaviour to generate more value for the business
64% – are more likely to purchase
50% – are more likely to recommend to others
35% – are more likely to choose brand over competitors
31% – are more willing to pay a higher price to stay with a brand. [2]
In relation to consumers in general:
10% – more likely to shop at an organisation with a top loyalty program [4]
Programs that don’t move the needle…
There are many areas where loyalty programs may miss the mark, although generally the downfall begins with a poor program design and/or poor implementation of the design. The risk of launching such a program is low or even negative return on investment including possible brand damage.
67% — the number of consumers who frequently buy from the same company yet say they are not necessarily loyal to that company. [1]
- Related article: “Do Rewards Really Create Loyalty?
17 – the number of loyalty programs the average US customer belongs to, but less than 50% are active [2]
59% – the share of Gen Z consumers active in at least one membership reward program in 2020, declining from 68% in 2018. [3]
- Related article: “Pros and Cons of Loyalty Programs”
Insight into current consumer behaviour in Australia…
70% – of consumers reported using their grocery loyalty program almost every time they shop
50% – of consumers reported using their airline loyalty program rarely or never.
When asked “What were the main reasons for signing up to a loyalty program?”, consumers responded:
85% – to accumulate points to save for a big reward
83% – earn points fast to redeem small rewards more quickly
75% – gamification (challenges, multipliers, etc)
72% – spend points to redeem products from partner company
69% – spend points to redeem products from company
66% – loyalty status with special recognition and increased benefits
When asked about their frequency of loyalty program use with a shopping brand, consumers responded:
62% – regularly
40% – almost every time
22% – often
20% – sometimes
18% – rarely or never [4]
References
[1] Wise Marketer Staff, 2022, Three Stats That Will Change the Way You Think About Customer Loyalty, https://thewisemarketer.com/three-stats-that-will-change-the-way-you-think-about-customer-loyalty/, accessed 6 June 2023.
[2] Chapple, L., Eizenman, O., Wilkie, J., 2022, Winning in loyalty, https://www.mckinsey.com/business-functions/growth-marketing-and-sales/our-insights/winning-in-loyalty, accessed 7 June 2023.
[3] McMillen, J., 2022, How You Can Win Gen Z’s Loyalty With Data And Trust, https://thewisemarketer.com/how-you-can-win-gen-zs-loyalty-with-data-and-trust/, accessed 7 June 2023.
[4] Swaminathan, K., Tesvic, J., Winchester, A., Yavash, K., 2023, Introducing the Australian Consumer Loyalty Survey, https://www.mckinsey.com/industries/retail/our-insights/introducing-the-australian-consumer-loyalty-survey, accessed 8 June 2023.
