In today’s competitive market, retaining customers is as crucial as attracting them.
Brands are now investing heavily in loyalty programmes to keep customers coming back.
Here are the top statistics and trends you should know about customer loyalty in 2024.
Market boom – The loyalty management market will reach $28.65 billion by 2030, as more businesses recognise the importance of customer loyalty. This growth highlights the strategic value of investing in robust loyalty programmes.
Hybrid experiences -75% of global executives plan to enhance hybrid experiences, blending physical and digital shopping to meet consumer demands. This trend underscores the necessity of seamless integration between online and in-store experiences.
Online reviews rule – 89% of consumers check online reviews before buying, proving that online reputation and social proof are critical. Positive reviews and active social media engagement significantly influence purchasing decisions.
Engagement gap – 81% of consumers join loyalty programs, but only 49% actively use them. More engaging loyalty offerings, including tailored and exclusive rewards, are needed to boost participation and retention.
Grocery programmes lead – 70% of consumers regularly use grocery and food retail loyalty programs. These sectors drive consistent engagement due to their tangible benefits, such as discounts and personalised offers.
Spend more for points – 64% of loyalty members spend more money to earn more points. A tiered loyalty system, where consumers unlock more benefits as they accumulate points, is proving effective in increasing basket size and encouraging repeat purchases.
Understanding customer needs – 70% of consumers value brands that understand their needs. Customer-centric approaches, such as personalised communication and tailored rewards, significantly strengthen loyalty.
Sustainability counts – 50% of under-18s and 41% of Gen Z prioritise sustainable brands. Ethical business practices and sustainability initiatives are key drivers of loyalty among younger consumers.
Socially beneficial products – 90% of Gen Z prefer products that benefit society. Brands that align with social values and demonstrate a commitment to positive social impact boost their appeal and loyalty among this demographic.
Conclusion
The customer loyalty landscape is evolving rapidly. Brands must adapt to changing preferences and understand what their customers expect. Emphasising tangible benefits, personalised experiences, and ethical practices are crucial for retaining loyal customers.
White Label Loyalty featured on our MarTech 50 ranking in 2024
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