Loyalty Marketing: Creating Stickiness in a Distracted World - eMarketer
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Loyalty Marketing: Creating Stickiness in a Distracted World

eMarketer Report

By: eMarketer

Published: February 08, 2016

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

Memberships in loyalty programs are expanding rapidly while active participation in programs is falling. The reason is simple: Although the barriers to joining programs are lower than ever, most programs are undifferentiated and rely largely on discounts.

  • Although spending on loyalty marketing is effective, marketers still heavily prioritize acquisition spending.
  • One study found that slightly less than half of consumers remained loyal to a Top 100 US consumer packaged goods (CPG) brand over a one-year span.
  • Consumers remain highly price conscious, but discounts aren’t enough to keep them loyal. According to one study, 63% of US millennials participate in a loyalty program that supports their lifestyles and personal preferences.
  • Loyalty program memberships in the US climbed to 3.32 billion in 2014, up 25.3% from 2012. Growth was strongest in drugstores and restaurants.
  • Gamification is increasingly important in keeping loyalty marketing fresh.
  • Mobile is changing loyalty marketing by raising expectations of instantaneity and consistency across channels. It has also opened up new opportunities in real-time messaging, customer service and seamless customer experiences.

"Even as memberships in loyalty programs continue to increase, active participation in programs is decreasing. This points to a failure of many programs to engage members with relevant and differentiated offers and service."

Table of Contents

Customer Loyalty Evolves Beyond Discounts

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Loyalty Programs

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Communicating with Mobile Consumers

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33 charts are included in the full report:

Loyalty Marketing: Creating Stickiness in a Distracted World

Average Number of Loyalty Programs to Which US Consumers Belong vs. Actively Participate, 2014 & 2015

Customer Loyalty Evolves Beyond Discounts

Loyal Customer* Retention Among the Top 100 US CPG Brands**, 52 weeks ending June 30, 2015 (% of total)

Likelihood of Shopping at Stores that Offer Loyalty/Reward Points According to US Loyalty/Reward Card Owners, June 2015 (% of respondents)

Attitudes Toward Loyalty Programs Among US Consumers, 2014 & 2015 (% of respondents)

Overall Experience Determines Loyalty

Factors that Determine Brand Loyalty According to US Internet Users*, Sep 2015 (% of respondents)

Younger Consumers Seek Emotional Connection

Level of Brand Loyalty According to Internet Users in North America, by Generation, June 2015 (% of respondents in each group)

Status/Nonmonetary Reward Reasons that US Internet Users Have Continued to Participate in a Loyalty Program, by Generation, Aug 2015 (% of respondents in each group)

US Internet Users Who Would Pay Slightly More for Products/Services if They Received Their Most Desired Benefits* from a Retailer, by Generation, May 2015 (% of respondents in each group)

Loyalty Programs

US Loyalty Program Memberships, 2000-2014 (billions and % change)

US Loyalty Program Memberships, by Category, 2014 (millions and % change vs. 2012)

Areas Where Retail Executives in North America Use Customer Data Gathered from Loyalty Programs, April 2015 (% of respondents)

Active Participation Rates Decline

Average Number of Total and Active Loyalty Program Memberships per US Household, 2010, 2012 & 2014

Average Number of Loyalty Programs to Which US Consumers Belong vs. Actively Participate, 2014 & 2015

US Internet Users Who Participate in Rewards/Loyalty Programs, by Retailer Type, 2010 & 2015 (% of respondents)

Attitudes Toward Rewards/Loyalty Programs Among US Internet Users, by Generation, Jan 2015 (% of respondents in each group)

Making Participation Worthwhile

Activities that Earn Rewards in Loyalty Programs Worldwide, Dec 2014 (% of loyalty programs analyzed)

Leading Reasons that Social Media Users Worldwide Express Negative Sentiment Toward Loyalty Programs, Dec 2014 (% of social media conversations analyzed)

Leading Reasons for Joining, Participating in and Leaving Loyalty Programs According to US Internet Users, Aug 2015 (% of respondents)

Reasons that Internet Users in North America Miss Out on Using Loyalty/Rewards Programs, Oct 2015 (% of respondents)

Current vs. Planned Implementation of Gamification* According to Retailers in North America, April 2015 (% of respondents)

Communicating with Mobile Consumers

Leading Digital Marketing Tactics/Channels Used for Customer Retention According to US Retailers, March 2015 (% of respondents)

Email Marketing Tactics Used Regularly by US Marketers, Dec 2014 (% of respondents)

Current vs. Planned Implementation of Select Mobile CRM/Loyalty Program Capabilities Among Retailers in North America, April 2015 (% of respondents)

Mobile Retail App Features that US Smartphone Users Plan to Use When Holiday Shopping, Sep 2015 (% of respondents)

Level of Interest in More Stores Offering Mobile Loyalty Programs Among US Mobile Phone Users, Dec 2014 (% of respondents)

Average Number of Apps Used per Day According to US Smartphone Owners, Aug 2015 (% of respondents)

Desired Mobile Wallet Features Among US Internet Users, Oct 2015 (% of respondents)

US Loyalty/Reward Card Owners Who Follow Brands for Which They Have a Reward/Loyalty Card on Social Media, June 2015 (% of respondents)

Digital Shoppers Worldwide* for Whom Digital Consumer-Generated Content Has an Influence on Offline Purchases, by Demographic, April 2015 (% of respondents in each group)

Current vs. Planned Ability to Identify Customers via Smartphone When They Arrive In-Store Among Retailers in North America, April 2015 (% of respondents)

Elements of Their Mobile Clienteling* Strategy According to US Retailers, June 2015 (% of respondents)

Extent to Which Store Associates Can Identify/Engage with Their Most Profitable Customers In-Store According to US Retailers, June 2015 (% of respondents)

Methods Used by Store Associates to Stay Connected with Customers According to US Retailers, June 2015 (% of respondents)