The loyalty program market is growing rapidly. Forecasts predict that the global loyalty management market, which is currently worth around $8.6 billion USD, will be worth over $18.2 billion USD by 2026.
With technological advancements and the increasing adoption of omnichannel programs driving growth, the market for engaging and sophisticated loyalty programs is only getting more exciting.
To take advantage of this growth and excitement it’s important for customer loyalty and retention marketers to have access to informative metrics and know the benchmarks for success.
In this article, we take a look at some of the most important loyalty stats and benchmarks for 2022 and beyond. We’ll also highlight some of the key themes concerning customer experience and the overall loyalty program market.
Consumer shopping behaviors stats
Following the pandemic, the ecommerce industry has experienced a significant boom. It’s important that brands understand new customer behaviors that developed through the boom because it is one of the most reliable ways to build customer loyalty.
Below we’ve highlighted some useful stats related to consumer shopping behaviors.
- 40% of US adults say that they enjoy in-store shopping a lot less now compared to how they felt before the pandemic (Forrester)
- Now more than ever consumers shop in line with their values. In fact, two out of three Americans told researchers that social values now shape their shopping choices. (McKinsey)
- Today, purpose-driven consumers, who choose products and brands based on how well they align to their values, now represent the largest segment (44%) of consumers. (IBM)
- Hybrid shopping is the primary buying method for 27% of consumers and 36% of Gen Z – more than any other generation. (IBM)
- In recent years, consumers have become more concerned with a brand’s social impact. Indeed, 88% of consumers want businesses to help them make a difference. (Forbes)
- Many customers feel that they do not have control of their data and this is leading to trust issues. According to the Pew Research Center, 70% of Americans believe their personal data is less secure now than it was five years ago. (PewResearch). On top of that, 81% of consumers say the potential risks they face from data collection by companies outweigh the benefits. (PewResearch)
- Over three-quarters of surveyed consumers (81%) reported feeling positive towards brands that offer free or discounted shipping. Plus, 76% of consumers feel positive or very positive about brands that offer unconditional discounts. (LoyaltyLion)
- Alternative incentives to discounts also make customers feel positive about brands. 77% said loyalty points would make them feel good, meanwhile 72% said early access to sales and 70% said early access to new products (LoyaltyLion)
What keeps shoppers loyal?
To understand what customers want to be loyal you need to craft an online experience they’ll be drawn to time and time again.
- 86% of customers say an emotional connection with a customer service agent would make them continue to do business with the company. (Forbes)
- 48% of people expect specialized treatment for being a good customer. (Accenture)
- 66% of customers say they would join a loyalty program if they could create ongoing connections with a brand they like (LoyaltyLion)
- 77% of consumers say they favor brands that ask for and accept customer feedback.(Microsoft)
- 61% of consumers think surprise gifts and offers are the most important way a brand can interact with them. (AP News)
- 50% of US consumers have left a brand they were loyal to for a competitor that better met their needs. (HubSpot)
- 93% of consumers are more likely to make repeat purchases at companies with excellent customer service.(HubSpot)
- 77% of consumers say they stayed loyal to specific brands for 10 years or more. (InMoment)
- Satisfied US customers will share their positive experience with 11 different people. (BusinessWire)
- Revenues for businesses that prioritize customer service rise 4-8% above their market. (Bain)
- 68% of customers say they would be loyal to a brand if it shared the same values as them (LoyaltyLion)
- 55% of customers say they would be loyal to a brand if they had an emotional connection to it (LoyaltyLion)
- 95% of loyalty program members want to engage with their brand’s program through new and emerging technologies. (GlobeNewsWire)
- Over 70% of consumers are more likely to recommend a brand if it has a good loyalty program. (Bond)
- 58.7% of internet users believe earning rewards and loyalty points is one of the most valued aspects of the shopping experience. (eMarketer)
Research also shows that customers prioritize brands that are known to have a good customer experience. Additionally, customers are also increasingly looking for personalized experiences.
- 73% of customers agree that customer experience helps to drive their buying decision. (PWC)
- 74% of customers feel frustrated when website content is not personalized. (Instapage)
- 80% of consumers are more likely to make a purchase from a brand that provides personalized experiences. (Epsilon)
- 70% of customers say they would be loyal to a brand if they got personalized offers (LoyaltyLion)
- 66% of customers say they would be loyal to a brand if they were recognized as an individual (LoyaltyLion)
- 42% of consumers are annoyed when content isn’t personalized. (Adobe).
Loyalty marketing statistics
If you want to stay relevant to your customers it is important to utilize these kinds of insights in your marketing operations. During turbulent times in ecommerce, loyalty marketing is key to retaining customers.
Combining a loyalty program with other retention methods, like email marketing and SMS will help you retain customers for longer.
- 87% of marketers use email marketing to disseminate their content. (Content Marketing Institute)
- 81% of SMBs still rely on email as their primary customer acquisition channel, and 80% for retention. (Emarsys)
- 64% of customers think businesses should text them more often. (ZipWhip)
- 77% of consumers say they’re likely to have a positive perception of a company offering SMS. (Harris Poll)
- 86% of companies incorporated UGC in their marketing strategy to help build trust and authenticity. (Taggbox.com)
- 92% of customers are looking for reviews and recommendations from existing customers. (Nielsen.com)
- Emails sent including loyalty program information have a 20% click-through rate. (LoyaltyLion)
Learn more loyalty marketing tips and tricks by signing up for the LoyaltyLion Academy.
The loyalty program landscape in 2022
The following stats will help you understand what the loyalty program landscape looks like in 2022. This knowledge will help you compete with other businesses who are also focussed on developing their own loyalty strategies.
- 26% of respondents consider loyalty programs a factor to remain loyal to a brand. (PwC)
- Organizations with a loyalty program that includes tiers reported a 1.8x higher return on investment than those which don’t offer tiers. (Antavo.com)
- Of respondents whose company offers a loyalty program, 81.9% plan to increase or significantly increase their investments in customer loyalty over the next three years. (Antavo.com)
- 53.6% of companies planning to launch their loyalty program in the next two years said that their program would be more emotional than rational. (Antavo.com)
- Loyalty program members have up to a 40% higher average annual spend than non-loyalty program members (LoyaltyLion)
- Redeeming loyalty program members have up to a 164% higher spend than non-loyalty members (LoyaltyLion)
- The purchase frequency of redeeming loyalty program members is 73% higher than non-redeeming members (LoyaltyLion)
It’s now an exciting time for loyalty marketing and investing in retention-based tactics. Customer expectations are changing and the customer experience is taking priority for most shoppers.
Companies need to observe stats like these and use them to understand how customer expectations are evolving and how their organization can formulate the best response.
By paying attention to these stats loyalty teams can lock in on the kinds of approaches that will help to increase their CLTV and start working towards something exciting.
To learn more about valuable loyalty stats and benchmarks download “The discounting playbook”.