US Retail Loyalty Programs: Decoding Consumer Behavior To Build Lasting Relationships

Published – April 2024

Loyalty programs play a vital role in driving customer engagement, customer retention and lifetime value, ultimately increasing sales and profits. In a March 2024 Coresight Research survey, a net 39.5% of surveyed US consumers reported spending more with a brand or retailer since joining their loyalty program.

How can US brands and retailers gain a competitive edge in long-term customer loyalty? We analyze proprietary survey findings to uncover what US consumers want from loyalty programs, and discuss the opportunities for retailers to drive engagement and sales through AI (artificial intelligence), gamification, experiential rewards and more.

Data in this research report include proprietary US consumer survey findings on the following:

• Consumer changes in spending levels since joining a loyalty program
• Types of benefits that consumers like in a loyalty program
• What consumers do not like about a loyalty program of which they are a member
• Loyalty-program membership rates—supermarket and nongrocery retailers’ programs
• Top benefits that would motivate consumers to switch to a premium loyalty program

Introduction

Market Scale and Opportunity

US Retail Loyalty Programs: Coresight Research Analysis

• Consumers’ Perspective on Loyalty Programs
• Competitive Landscape
• Opportunities for Retailers: Enhancing Loyalty Programs for Greater Appeal
• Impact of AI on Loyalty Programs

What We Think

• Implications for Brands/Retailers
• Implications for Technology Vendors

Notes and Methodology

11-page PDF report

Adidas, Albertsons, Amazon, Barefaced, Best Buy, Claire’s, Sephora, Target, Under Armour, Walmart

1. US Consumers with a Loyalty-Program Membership: Changes in Spending Levels Since Joining a Loyalty Program (% of Respondents)
2. US Consumers with a Loyalty-Program Membership: Type of Benefits They Like in a Loyalty Program (% of Respondents)
3. US Consumers with a Loyalty-Program Membership: What They Do Not Like About a Loyalty Program To Which They Belong (% of Respondents)
4. US Consumers with a Loyalty-Program Membership: Supermarket Retailers’ Programs of Which They Are Currently a Member (% of Respondents)
5. US Consumers with a Loyalty-Program Membership: Retailers’* Programs of Which They Are Currently a Member (% of Respondents)
6. Loyalty-Program Trends in Which Companies Plan To Invest in 2024
7. US Consumers with a Loyalty-Program Membership: Top Benefits That Will Motivate Them To Switch from a Free Loyalty Program to a Premium Loyalty/Membership Program (% of Respondents)
8. Aspects of Sustainability That US Consumers Are Most Concerned About (% of Respondents)