Loyalty remains a powerful lever for brands, with 68% of respondents willing to pay more for brands they feel loyal to. This willingness to go the extra mile is a testament to the value of a loyal customer base.
Loyalty can be complex. Even if many consumers are consistent buyers, they don’t necessarily feel emotionally tied to a brand. 70% of respondents said they frequently buy from the same brands without necessarily feeling loyal to them. While these relatively apathetic consumers still contribute to revenue, they can also easily be wooed by competitors, revealing the importance of a thoughtful loyalty strategy that cements a genuine sense of connectedness.
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For brands aiming to build long-term loyalty, it’s essential to invest in experiences that reinforce why customers should stick around, even when other options are available.
Quality tops the list of loyalty drivers, with 82% of respondents marking it as “important” or “critically important” in maintaining their brand loyalty. As consumers age, their focus on quality only intensifies, with 86% of 65-74 year-old respondents marking product/service quality as important to maintaining their loyalty. This underscores the need for brands to prioritize a commitment to product excellence, especially in a market where consumers are more discerning than ever. A reliable product that consistently meets their high standards gives customers a reason to return.
Exceptional customer service is the backbone of a positive brand experience, valued by 74% of survey respondents The 65-74 age group ranked customer service highest, reinforcing that as consumers age, they lean on brands to offer both quality products and fair pricing, in addition to customer support that makes them feel prioritized.
Personalized offers (64%) and loyalty programs (64%) are critical for making customers feel seen and valued. However, simply inserting a first name in an email salutation is not the level of relevancy they desire. Personalization that reflects unique consumer preferences, such as special offers for loyal customers or access to tailored experiences, presents a profound sense of brand connection. Loyalty programs also provide a structured way for consumers to understand the direct benefits from their relationship with your brand, turning repeat purchases into an experience that feels less transactional and more relational. Loyalty programs also gather a vast amount of consumer data that helps fuel personalization efforts, from behavioral insights to rewards preferences.
This research shows variety in product choice is important for more than seven in ten respondents across age cohorts. Brands can capitalize on this by expanding their product lines or curating exclusive collections, giving consumers fresh reasons to stay engaged.
Data privacy is a significant loyalty factor (70%), especially for older consumers. This is a clear signal for brands to double their efforts on transparent, secure data practices. Today’s consumers are increasingly selective about where they spend and share their data, so protecting customer privacy can be an overlooked yet powerful loyalty driver.
Brand values such as environmental initiatives or social activism, appeal to 42% of respondents with younger consumers (18-34) finding it particularly compelling. For these types, loyalty isn’t just about the product, but also the brand’s values and impact. By leading with purpose and communicating these values authentically, you can differentiate your brand with younger audiences, turning shared values into a foundation for loyalty.
Half of consumers say relationship building is essential to their brand loyalty, but despite this, loyalty is not guaranteed. To keep customers engaged, brands need to focus on creating meaningful, personalized experiences. Trust, great service, and relevant engagement help turn one-time buyers into repeat customers. Consumers are also more likely to stay loyal when brands offer personalized promotions, quality products, and strong customer support.
Loyalty is a delicate balance for brands, as customers sometimes disengage. 37% of respondents indicated a likelihood to become less loyal or move away from brands they favored over the past year, with younger generations the most likely to switch—50% of 18 to 24-year-old respondents and 44% of 25 to 34-year-old respondents have drifted from brands they used to be loyal to.
Half of respondents said they would reconsider a brand if it provided more attractive discounts or promotions, while 42% could be lured back if the product or service quality improved. Customer service also plays a role, with 41% of respondents saying they would return if the service experience were better.
While these traditional drivers of loyalty are critical, brands must adapt to audiences that increasingly expect more from their brand relationships, including offering a seamless digital experience that resonates particularly with younger generations. For example, a quarter of 18 to 24-year-old respondents said they would reconsider a brand if it improved its digital user experience. Similarly, aligning with consumer values can also sway loyalty, especially among younger respondents, with 22% saying they’d return to a brand if it reconsidered its stance on societal issues.
Desirable Loyalty Program Components
Beyond traditional discounts and rewards, consumers are drawn to unique experiences. More than a third (35%) of respondents value exclusive access to products or services, while 25% enjoy participating in contests, sweepstakes, or challenges. These findings align with the latest developments in loyalty programs, which have evolved to provide interactive and personalized experiences beyond the typical transactional rewards.
These insights suggest in order for brands to deliver successful loyalty programs, they need to offer a mix of monetary and non-monetary components. Typical offerings like points, rewards, discounts, and other value-adds can attract new and existing audiences. More experiential offerings, like offering early access to new products or providing curated feeds based on behavioral insights, will help differentiate your program and keep consumers engaged.
Nearly four in ten respondents said they are more likely to engage in a loyalty program this year compared to last year, and 57% indicated they will be keeping their loyalty program participation constant). Simply put, brands without dedicated loyalty programs are missing an opportunity to deepen connections with their audience.
When it comes to consumer desires in loyalty programs, the impact of economic turbulence is clear. Points and rewards systems (67%) and exclusive discounts (61%) top the list of most-wanted program components from survey respondents.
