Rewards programs alone don’t guarantee customer loyalty

Jul 27, 2023
Written by WR Communications


Retail rewards programs have become an excellent tool in the retail industry, aimed at encouraging customer loyalty and repeat business. However, a recent analysis by Morning Consult revealed that these programs alone do not guarantee true customer loyalty. While they can attract attention and incentivize customer behavior, they can fall short of fostering deep and lasting brand loyalty.

Morning Consult compared various brands and found that less than half of self-described loyal customers were members of the brand’s rewards program. This suggests that rewards programs alone are not sufficient to cultivate loyalty. Instead, brands can reward a range of desirable behaviors and encourage customer engagement through non-transactional, usually helping to build stronger relationships with high-value customers.

Great rewards programs extend beyond the standard points-and-rewards model such as offering additional perks like free shipping and returns, eco-friendly initiatives, or experiential offerings. These value-added benefits can attract a wider audience, including younger and wealthier shoppers actively engaging in multiple rewards programs.

The analysis also revealed that various factors beyond the rewards program often influence loyalty to a brand. These can include the overall shopping experience, product quality, customer service, and alignment with the brand’s values.

Read Morning Consult’s full article


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