Retail Loyalty Programs: A Global View

Key Points

• Many retailers offer loyalty programs. Some companies generate up to 60% of their revenues from loyalty program members. Others, such as warehouse clubs, operate a membership-only business model.
• For traditional retailers, loyalty programs can provide valuable data that is used to personalize offers and ensure that the program perks are relevant to each customer.
• Perceptions of loyalty programs vary among consumers in different regions, and can be affected by a country’s economic situation or cultural preferences.
• Smartphone apps are set to become more prominent in loyalty programs with many members likely to use their smartphones in place of plastic membership cards in the years ahead.