If you’re like most Americans, you belong to a brand loyalty program in which companies reward repeat customers with discounts and other perks. In fact, you probably belong to several of them.
Loyalty programs have become big business, with the market valued at more than $5.5 billion and expected to hit $24 billion by the end of 2028. A staple of the U.S. commercial scene since at least the late 18th century, these programs’ popularity took off in the 1990s with the advent of the digital age and the trove of data customers are willing to exchange for their perks.
Now 90% of brands have loyalty programs, according to Queue-It, and the best-performing ones increase revenue from the most loyal customers by 15% to 25%. Little wonder: Nearly 4 in 5 Americans (79%) belong to such programs, with two-thirds of Americans (67%) participating in more than one, according to a recent Harris Poll survey.
And more than 4 in 5 loyalty program members (83%) told us that they are more likely to shop at stores that have loyalty memberships. Similarly, a majority (56%) said that they have spent more than they normally would at a store to earn loyalty benefits. Nearly as many (49%) said that they’ve spent up in order to reach a higher loyalty tier.