Shoppers only actively use half of the loyalty programmes they join, according to research by loyalty platform Antavo. Statistics show shoppers are more likely to spend with brands that tailor their loyalty offerings to individual customers.
Zsuzsa Kecsmar, co-founder of Antavo, said: “Consumers are becoming increasingly savvy, and while tight purse strings and people shopping around for the best price are leading to a decline in brand loyalty overall, the usage of loyalty programmes is on the up. Brands and retailers should offer a well-balanced programme with a strong financial proposition to draw consumers in and distinctive emotional components like early access and members-only products to keep them around.”
The study found e arning rewards, discounts, or cash back is the dominant motivator for consumers to join loyalty programmes for 75% ofconsumers. 43% would like to see no expiration of points, as points often expire after 12 months.
44% of consumers stated they want more ways to earn points in loyalty programmes—including non-transactional actions, such as engaging in physical activities or donating old items. A third (32%) want more ways to redeem points and rewards, such as choosing a physical gift or early sale access.
While digital loyalty programmes are gaining traction, traditional plastic cards remain in high demand, capturing 36% of the vote. Globally, this preference is particularly strong among Boomers (41%), suggesting that brands targeting this demographic should maintain a balance and avoid going fully digital for now.
Zsuzsa added: “Loyalty is a hot topic following the recent Competition and Markets Authority (CMA) investigation in the UK, in which the competition watchdog concluded that loyalty cards do offer genuine savings. We’re also seeing brands like McDonald’s referencing loyalty as a key strategic growth factor in their earnings calls and updates to shareholders.
“Consumers have come to expect to be rewarded for their spending through transactional rewards and personalised offers. Data tells us that the traditional earn-and-burn is no longer enough, though, and people want more freedom in how they earn and spend. Evolving customer expectations will see brands that fail to reward them appropriately get left behind – these loyalty trends are pivotal in shaping the future of consumer spending.”
Antavo powers the loyalty programmes for brands including Kentucky Fried Chicken (KFC), Whittard of Chelsea, Yeo Valley and Flying Tiger Copenhagen.