What does it take to create loyal customers? And once you have their loyalty, how do you keep them engaged and invested, or even encourage them to become advocates, especially in this evolving industry?

We surveyed a diverse group of 1,500 consumers across generations to gain insight into what drives customer loyalty. 

For six years, the Loyalty Barometer Report has examined consumers’ thoughts and feelings on loyalty programs and how brands can better align with consumer preferences. In this edition, we’ll reveal how consumer mindsets are evolving and what brands can do to ensure customer strategies remain current, relevant, and impactful. 

What are the report’s key takeaways? 

• Year-over-year trends are stable, but data privacy concerns and AI are poised to alter the landscape.  

When it comes to loyalty, what consumers want hasn't significantly changed. But converging forces around data privacy and AI will shape how marketers reach their customers and loyalty strategies will need to evolve to rapidly changing customer expectations.

•  Consumer demand for loyalty programs remains high.

Loyalty programs continue to be an important way for consumers to earn discounts and other benefits from brands. Participation in both paid and free programs is up and can impact purchase frequency and spend. Investing in this channel can help brands meet customer expectations and drive business objectives. 

• Financial rewards must anchor program value exchanges.

Our research indicates that discounts and other financial incentives are the most important rewards for consumers. But discounts alone aren't enough. Brands must wrap the financial value exchange in differentiated benefits and services that reflect the brand's customer promise and create program stickiness. 

• Consumer distrust around using their data will erode loyalty program value. 
  

Trends show a decreasing level of consumer comfort with brands using their data. This is a major risk for brands because loyalty strategies will crumble if consumers are no longer willing to share their data. Brands need to be transparent about how they're using customer data and the value of sharing it.