Customer Loyalty Programs in the US: Stats and Facts

The average U.S. household has enrolled in more than 18 customer loyalty programs, but is only active in 8.4. (Colloquy Loyalty Census). Just because someone signs up for your loyalty program, it doesn’t mean they will ever do business with you again, at least in the somewhat near future.

Of the roughly $48 billion in reward points and miles issued annually, at least one third goes unredeemed by consumers. (Colloquy Loyalty Census).  loyalty-cards-us

85% of loyalty program members haven’t heard a single word since the day they signed up. It is likely that most companies do reach out to their customers, however their emails or letters look like spam or junk mail.

88% of respondents indicated that quality is a key factor in their decision to remain loyal to a brand; 72% identified customer service as a top priority. These stats make a pretty strong case that loyalty comes from the combination of a high quality product and excellent customer experience.

48% of respondents said that the most critical time for a company to gain their loyalty was when they make their first purchase or begin service. First impressions count. It can be the first time you meet or work with a customer, or the 500th time. Set the tone for the first impression of that particular interaction, which sets the tone for what’s to follow.

54% of respondents would consider increasing the amount of business they do with a company for a loyalty reward, and 46 % said they already have. However, the majority of consumers (62%) don’t believe that the brands they’re most loyal to are doing enough to reward them. Customers want to be loyal. They would like some type of loyalty program, but do it right. Follow through after the customer signs up or commits to your program.

Don’t let your loyalty program be gimmick, just to get customers to sign up. You can have a million card carrying members in your program, but don’t be fooled into thinking you have a million loyal customers. Unless you engage with these customers, follow through with them and make them feel special, you will only retain a percentage of these customers. And it starts with a great product that is combined with a great customer service experience.

Loyalty Marketing Statistics

  • 53% of Americans participate in a loyalty program because of ease of use
  • U.S. consumers hold 3.8 billion memberships in customer loyalty programs
  • Loyalty membership growth continues, but has slowed to 15% compared to the 26% growth rate achieved in 2015
  • Loyalty Program enrollment has grown by 31% over the last four years while active engagement rates have remained flat
  • Loyalty program member satisfaction remains steady year over year at about 46%
  • 39% of U.S. consumers participate in a loyalty program because they give great discounts
  • 37% of U.S. consumers participate in a loyalty program because they are easy to understand
  • 57% of U.S. consumers will abandon a loyalty program if it took too long to earn points or miles
  • 26% of North American consumers will stop using a loyalty program if it doesn’t have a smartphone app
  • 56% of brands automatically enroll customers into their loyalty program at account signup
  • 51% of Americans trust loyalty programs with their personal information
  • 70% of shoppers said they belonged to between one and five non-grocery loyalty programs
  • 16% of shoppers don’t belong to a loyalty program of any kind
  • 24% of shoppers use the rewards they earn
  • 43% of shoppers say rewards expire before they can be redeemed
  • 38% of shoppers say they never knew if they had rewards available
  • Redeemers are twice as satisfied with loyalty programs as non-redeemers
  • 71% of shoppers say they would be more likely to use their loyalty cards if they could access these cards and rewards from their mobile phone
  • 81% of consumers agree that loyalty programs make them more likely to continue doing business with a brand
  • 86% of consumers who like a loyalty program will shop more, and of those, 58% will shop 15% or more with their retailer/brand of choice
  • 73% of members are more likely to recommend and say good things about brands with good loyalty programs

The MaCorr Team

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