Data from our consumer survey provides valuable insight into customer loyalty program participation across demographics. It also reveals the various frustrations and reasons for leaving customer loyalty programs. 

The top 5 frustrations of customer loyalty program members

Our data reveals the biggest annoyances and dissatisfactions your customer loyalty members may have with your program: 

1. Their customer loyalty program points expire.

Expiring points that vanish before they can be used is the #1 frustration, reported by 47% of the consumers we surveyed. When customer loyalty program points expire unused, members feel like the time and money they spent accumulating those points was wasted. It breeds frustration when hard-earned rewards simply disappear.

The solution: Make points non-expiring so unused points never disappear from accounts. Allowing hard-earned rewards to vanish breeds resentment among members. If that’s not an option for your company, consider extending expiration timeframes or sending automated reminders about soon-to-expire points. Companies like Chik-fil-A use non-expiring points to increase satisfaction.

2. Their customer loyalty program points accumulate too slowly.

Another top complaint is slow reward accumulation. About 43% of consumers don’t like how long it takes to earn meaningful rewards through loyalty activities. For example, airlines frequently require thousands of miles flown before customers receive free flights or seat upgrades.

The solution: Speed up reward earning rates so members can access redemptions faster. Reduce thresholds for reaching reward tiers and milestones. Allow customers to earn extra points on certain days or purchases. Send automated messages on double point days or if a certain product or service is eligible for more points earned. More rapid gratification increases customer loyalty and satisfaction. Companies like Starbucks have sped up rewards earnings with quicker promotions.

3. They’re not seeing enough savings or value.

37% of consumers say one of their biggest frustrations with customer loyalty programs is that the value of rewards offered is too low, according to our survey data. Members feel the return on their loyalty is underwhelming when reward redemptions don’t provide enough aspirational value or real savings.

The solution: Increase reward values to feel more worthwhile to members. Evaluate if current offers provide enough incentive and adjust accordingly. Sweeten redemptions with extra perks not available to non-members. Consider bonuses like anniversary gifts, bonus points events or seasonal specials. Hotel programs like Hilton Honors offer milestone bonuses and often provide extra points promotions to reinforce value. Highlighting member-exclusive savings in communications reminds customers it pays to be loyal.

4. They have to pay a membership fee.

One-third of consumers dislike having to pay membership or annual fees just to join a customer loyalty program and access benefits. Unwanted fees like annual membership charges motivate 41% of consumers to cancel customer loyalty program memberships. Many see fees as an unnecessary cost just for discounts.

The solution: Consider dropping these fees that create barriers to enrollment and activation. Or, allow customers free membership if they spend a certain amount. If you do charge an annual fee, make sure to set up automated messages to remind customers their membership is up for renewal. If your company needs to charge a membership fee, be sure to emphasize the value derived from the program over the fee cost. For example, Amazon Prime converts many consumers to members by highlighting membership perks.

5. The rewards aren’t relevant.

Our research shows 32% of members say offered rewards don’t interest them personally. One-size-fits-all offers get ignored if they aren’t tailored to individual preferences and needs. Members want customer loyalty programs to demonstrate relevance through personalized rewards.

The solution: Personalize rewards based on individual interests and preferences. Use data and feedback to tailor offers instead of taking a blanket approach. Surprising and delighting members with relevant rewards show the company pays attention to what they care about. Consider personalized bonuses like free products from their favorite lines.

The top 3 reasons customers leave loyalty programs

81% of consumers say they would switch loyalty to another company with a superior program. While frustrations cause resentment, certain factors push members to actually close accounts and quit customer loyalty programs entirely:

1. They’re receiving too much communication about the program.

Excessive contact and communication irritates members. 73% of consumers report potentially leaving if a company contacts them weekly or daily about their program according to our research. Omnichannel messaging should enlighten, not annoy. Too much outreach overwhelms customers.

The solution: Here’s what consumers want brands to know about customer loyalty program communication. Carefully manage program communications based on frequency preferences. Too many messages train members to ignore and opt-out. Ensure subscribers control preferences and honor channel and frequency selections. Audit messaging cadence and segment out highly engaged members. Instead of a blanket blast approach, retail programs like Petco allow members to select the types and frequency of alerts they want to receive.

2. They’re not using the program enough.

The #1 reason given for leaving a program is simply not using it enough over time. Without meaningful activity, 48% of consumers see no reason to remain enrolled. Driving regular engagement is essential to proving program value.

The solution: Driving active engagement through compelling rewards and experiences is key. Use customer data to personalize offers based on interests and tailor relevant messages. Expand reward-earning opportunities beyond transactions. Engage members through social, events, and advocacy activities. Sephora’s Beauty Insider loyalty program high-tier Rouge members gain access to exclusive events that promote community.

3. They didn’t save enough money.

The third most common reason for leaving is rewards simply not providing enough monetary savings to feel worthwhile. If they don’t see savings, 41% of consumers will leave a customer loyalty program. Members want to see a clear return on their loyalty investment. Underwhelming savings undercut retention. 

The solution: Audit whether your customer loyalty program delivers measurable member savings vs non-members. If not, increase reward values and sweeten redemptions to feel more worthwhile. Highlight concrete money saved in messaging. Consider seasonal “bonus bucks” promotions or member exclusive sales. The key is tying program activity clearly to monetary savings.

Optimizing and building customer loyalty programs to alleviate these common frustrations can reduce churn and create lasting brand affinity. To learn more, check out the aspects of customer loyalty programs that consumers consider the best. By taking the right actions tailored to their customers, you can connect with customers in meaningful, long-lasting ways.

The post Why customers are leaving your loyalty program (and what you can do about it) appeared first on Cordial.

Marketing experts from Cordial and Orveon, a collective brand behind popular cosmetics companies like bareMinerals, BUXOM, and Laura Mercier, came together to discuss strategies for maximizing customer intent signals and driving loyalty by leveraging unified data.

Watch the on-demand webinar below or continue reading about their key takeaways.

Watch now

The power of a unified customer profile

Brands often have customer data spread across various sources—website interactions, loyalty programs, past purchases, surveys, third-party data, marketing channel activity, and more. Centralizing this data into a customer data platform (CDP), that can also execute complex customer journeys and real-time personalization,  is critical.

With Cordial’s flexible data platform, Orveon has unified data points from all of these sources to build holistic customer profiles. This complete view of each customer provides invaluable visibility for personalizing experiences.

Ongoing data consolidation also enables Orveon to add new information from emerging channels and continue expanding their customer knowledge. Unified profiles are the foundation for intent signal tracking and optimization.

Identifying and acting on intent signals

Customer actions—like abandoning a quiz on a website—signal interest in the topic and present an opportunity for hyper-tailored follow-up. Other common intent signals include searching for specific products, adding items to the cart, or interacting on social media.

With unified customer data, brands can track intent signals like these across channels and continue the conversation in a way that captures interest. For example, Orveon uses Cordial to identify when customers abandon quizzes on their website. They then send customized emails encouraging the customer to complete the quiz, which captures their interest and leads to higher conversion.

Personalizing messages based on intent signals and other customer data drives higher engagement, conversion, and revenue over generic communications.

Personalizing across channels

Unified customer profiles enable brands to dynamically personalize messaging across channels based on data like purchase history, loyalty status, product interactions, and more.

Orveon leverages Cordial’s platform to tailor on-site banners, email content, SMS messages, and push notifications for each customer. This could include displaying abandoned cart reminders, sending tips for using recently purchased products, or showcasing loyalty status and available rewards.

The depth of personalization is endless when brands can access rich customer data in real time across channels. Testing different personalized messages also helps optimize engagement and loyalty.

Driving loyalty program success

For brands with loyalty programs, omnichannel personalization is invaluable for making members feel recognized and providing VIP access. Orveon rewards social engagement with points and sends tailored emails and SMS to encourage loyalty members to redeem points and reach higher tiers.

On-site overlays give members special offers after purchase, while push notifications deliver exclusive perks and content directly to their phones. Customer data powers experiences that strengthen loyalty across touchpoints.

Continuously test and optimize

While unified customer data is extremely valuable, brands must test and optimize messaging to maximize its impact. Simple A/B testing of email subject lines, content, send times, landing pages, and more can significantly lift open rates, clicks, and revenue.

Results will vary based on seasonality, so testing across holiday periods versus summer months is key. Continually experimenting and iterating will refine messaging and improve customer engagement over time.

Orveon developed a rigorous cadence for proposing, designing, and analyzing tests focused on metrics like email engagement and conversion. Their mantra is “always be testing, always be retesting” as they work to optimize communications.

Turn data into lifelong relationships

In today’s crowded marketplace, unified customer data and understanding intent signals are essential for brands to deliver personalized experiences that build loyalty and maximize lifetime value.

Consolidating data into complete profiles, tracking intent, optimizing through testing, and engaging loyalty members omnichannel are proven strategies for success. Platforms like Cordial make data readily accessible everywhere so brands can focus on using it to forge lasting connections.

The future belongs to those who can turn fragmented information into unified insights and transform impersonal messaging into personalized relationships. Successful brands will tap into the power of customer data to earn loyalty one message at a time.

The post Tap into the power of customer data to earn loyalty appeared first on Cordial.

But simply having a loyalty program isn’t enough anymore – restaurants need to tap into data and insights to create more relevant, personalized rewards experiences. Recent research indicates there are gaps in how restaurants leverage data from their loyalty programs, leaving opportunities to better cater to customers. Here are six data-driven best practices restaurants can implement to get more value from loyalty initiatives:

Offer an app-based program

According to Cordial’s research, 75% of Gen Z, 86% of Millennials, 72% of Gen X, and 44% of Boomers say they are more likely to use a loyalty program if the brand has a mobile app. Apps provide convenience for customers by putting your program right in their pocket. Integration with mobile wallets like Apple Pay also enables easy earning and redemption at the time of payment. Having an app also gives restaurants a direct channel to communicate special offers and provide frictionless enrollment at customers’ fingertips.

Give members exclusive perks

When we asked consumers about why they join loyalty programs, 46% said that getting exclusive offers was a top incentive. Restaurants could provide members-only menu items, pre-sale access to events, or the chance to meet celebrity chefs. Exclusivity makes customers feel special and gives them a reason to actively participate in the program. 

Move toward preferred communication channels

How you communicate with loyalty members impacts their satisfaction. According to our research, 66% of consumers prefer getting program updates, and 30% favor text messaging. Restaurants should emphasize digital channels to provide convenience for patrons and target communication based on preferences.

Rethink points expiration 

One of the biggest loyalty program frustrations is rewards points that expire before the customer can use them. Nearly half (47%) of consumers complain about expiring points, indicating this is a significant pain point (while only 39% of B2C marketers think expiring points are a top frustration among consumers). Restaurants should consider eliminating expiration dates for points or at least setting very generous windows of 12 months or longer. Make it easy for customers to accrue and retain value.

Analyze emotional loyalty

Transaction history alone doesn’t paint a full picture of customer loyalty. Restaurants need to analyze emotional loyalty factors and lifetime value in addition to purchase frequency. This enables segmentation and targeting based on truly loyal behavioral traits versus just heavy purchasers. Some solutions can calculate “emotional ID” scores that link sentiments to spending and optimize underperforming but high-potential groups. 

Strategically use tiers

Multi-tiered loyalty programs are compelling but underutilized, with only 19% of the brands we surveyed currently using them. Tiers work well in restaurants, giving patrons goals to reach for special VIP status that confers additional benefits. But programs shouldn’t be overly complex – with just two or three clearly defined tiers that customers realistically can attain. Prestige tiers also drive emotional connections beyond discounts.

The key is applying data strategically to loyalty initiatives. With privacy regulations limiting traditional tracking, loyalty programs present a prime channel for gathering zero-party data – information customers intentionally and transparently provide about preferences. Surveys and feedback forms can capture input for improving experiences and offerings. When layered with transaction history and emotional loyalty insights, zero-party data enables highly personalized rewards and tier criteria.

For restaurants, the result is loyalty programs that resonate more with exactly what customers want. Not just points and free food, but experiences that make them feel valued. With 72% of consumers being more likely to recommend a brand if it has a loyalty program, and 81% willing to switch for better rewards, data-powered programs can be a difference-maker in today’s market. Using technology solutions like Cordial and a strong zero-party data strategy helps take the guesswork out of rewarding your loyal customers.

The post 6 data-driven strategies to make your restaurant loyalty program more personal appeared first on Cordial.

Data from our consumer survey provides insight into current loyalty program participation across demographics. It also reveals the various incentives that consumers value most when considering whether to join a brand’s program. Let’s dive in…

Who’s joining loyalty programs?

When it comes to loyalty program participation, Gen Z tends to lag behind other generations: 

• Nearly 25% of Gen Z consumers are not enrolled in any programs at all—twice the rate of other age groups. 
• Only 6% are enrolled in 5 or more programs. 

The takeaway: This data suggests that Gen Z may be more reluctant to join loyalty programs or see less value in them compared to older consumers. Brands targeting younger audiences may want to re-evaluate their program’s value proposition and simplify the signup process. Offering incentives more tailored to Gen Z could help overcome reluctance.

In contrast, Baby Boomers have the highest enrollment rates overall:

• 39% are members of at least 5 loyalty programs, demonstrating their enthusiasm for participating.

The takeaway: Brands targeting Boomers may want to emphasize their loyalty program benefits in marketing to drive sign-ups. Highlighting ease of use and savings could appeal to this demographic.

When it comes to how quickly consumers will join a loyalty program, one in five say they would consider signing up after shopping just once with a brand. However, Gen Z tends to need more convincing: 

• One in five Gen Zers say they would need to shop with a brand at least 10 times before considering joining its program. 
• This compares to just one in 10 of older generations reporting the same hesitation. 
• Overall, 78% of consumers say they would consider joining a loyalty program after shopping with a brand five or fewer times.

The takeaway: Brands may want to pay attention to these thresholds and consider offering small immediate incentives to encourage signups earlier in the customer journey.

What motivates consumers to join?

When considering signing up for loyalty programs, the top incentives consumers desire are:

• 58% say saving money on everyday purchases
• 56% say getting free perks
• 49% say immediate discounts and exclusive offers

The takeway: Brands should focus on lead generation offers that provide instant gratification and ongoing savings.

For Gen Z, exclusive offers are the number one motivator encouraging them to join. Brands targeting Gen Z may want to highlight special deals only for program members. Offering exclusive early access to new products or flash sales could attract this demographic.

Millennials appreciate being able to participate in VIP experiences at a higher rate compared to other generations. Providing exclusive events and opportunities could attract more Millennial sign-ups. Consider offering members-only concerts, parties, or pop-up experiences.

Generation X is most motivated by free perks and immediate discounts. Brands seeking Gen X loyalty would do well to offer free welcome gifts and instant savings for joining. Free shipping, birthday gifts, and first-purchase discounts are good options.

And Boomers are primarily driven by the ability to save money on daily purchases when deciding to enroll. Lead with money-saving rewards like % back or annual credits to get more Boomers to commit to your program. Highlight ease of earning and redeeming rewards.

While non-cash rewards are appealing to many, only 23% say a frequent purchasing plan influences their decision to join a loyalty program. Leading with purchase requirements may not be an effective strategy for acquisition. Emphasize the rewards first, requirements second.

Additionally, about three quarters of consumers say they would be motivated to join a brand’s loyalty program if they felt it meant they would be treated better as a customer. Providing VIP service and support to loyalty members can be a compelling advantage. Make sure to highlight specialized treatment and appreciation perks in your program’s messaging.

This data from our consumer survey provides marketers with valuable demographic insights to inform their loyalty program strategy. By tailoring program enrollment requirements and benefits to match what matters most to their target audiences, brands can drive engagement and retention among current and potential loyal customers. Consider generational preferences, income levels, marital status, parenthood, and more when structuring your program for maximum appeal and ROI. 

Want to learn more about customer loyalty programs? Here’s what customers want brands to know about loyalty program communication.

The post Customer loyalty programs: Who’s joining and why? appeared first on Cordial.

For more details, you can scan our comprehensive list of 100+ Customer Loyalty and Rewards Program Stats.

Communication preferences

When it comes to receiving communications about loyalty programs, email is still king – 66% of consumers said it’s their preferred channel. However, mobile apps are gaining ground, preferred by 30% of consumers overall.

There were some generational differences:

• Nearly half (48%) of Millennials prefer mobile apps, compared to only 10% of Baby Boomers.
• Gen Z and younger Millennials are much more likely than older consumers to prefer text messaging.

This aligns with broader trends of younger consumers being digital-first in their preferences. Mobile apps allow brands to seamlessly integrate loyalty programs into the shopping experience. They can connect rewards directly to purchasing habits through the app. Push notifications can also remind customers to continuously engage with the program. It’s important for brands to provide both email and app-based communication options to reach customers through their preferred channel.

Frequency of contact

Brands need to strike the right balance with how often they contact loyalty program members. Too frequent, and customers get annoyed. But too infrequent, and they can forget about the program entirely.

Our research found weekly touchpoints hit the sweet spot for most consumers. However, preferences vary:

• 27% are fine with daily contacts
• 22% said monthly or less is preferable

Testing into the ideal frequency for your audience is recommended and weekly communication is a safe starting point. Measure engagement over time and adjust as needed to find the recurring touchpoint that works best.

Purchasing for points

Many consumers engage in manufactured spending – buying items for others while being reimbursed – just to rack up loyalty points or rewards faster.

• 44% admitted to doing this overall
• 58% among Millennials and Gen Z
• Only 25% among Baby Boomers

Brands need to be aware of these habits and how customers essentially “game” loyalty programs. The most avid point-chasers are often not a brand’s most profitable customers.

Quitting programs

Nearly one quarter of consumers (23%) said they would quit a loyalty program if they felt it wasn’t easy to use. And the top reason for actually quitting is not using the program frequently enough.

This shows the impact of minimizing friction through intuitive design. Ensure the program is simple to understand and use. Automate workflows and leverage data to deliver personalized, relevant offers at the right times.

Send reminders about key features or unused rewards before they expire. Surprise and delight occasionally with unexpected perks. Consistency, relevancy and value are critical to keeping members engaged over the long term.

About the survey methodology

Sample sourced by Dynata on behalf of Cordial during March 2023. We surveyed 500 B2C marketers and 1,000 adult consumers, age 18 and older, who live in the United States. The sample was balanced by age, gender, region, ethnicity, Hispanic origin, income, and children in household according to the U.S. Census. Age ranges for the generational groups cited in the study are: Gen Z (18-24), Millennials (25-42), Gen X (43-57), Boomers (58-75). For complete survey methodology, including weighting variables and subgroup sample sizes, please contact marketing@cordial.com.

The post What customers want brands to know about loyalty program communication appeared first on Cordial.

That’s where zero-party data comes in.

What is zero-party data and why does it matter?

Zero-party data (ZPD) is information that customers intentionally and proactively share with brands. This could include:

• Preferences
• Interests
• Goals
• Opinions
• And more

Unlike first-party data (past transactions and interactions) or second-party data (inferred insights), zero-party data gives direct visibility into what customers care about right now.

Forrester’s report, “Loyalty Programs Give You A Zero-Party Data Advantage,” dug into why this level of rich, voluntary data is becoming critical. As privacy regulations limit access to third-party data, ZPD gives brands transparent and ethical data to drive true personalization.

The challenges with current loyalty data

Right now, many loyalty programs struggle to move the needle on customer relevance due to:

• Privacy concerns – Customers are wary of sharing personal data, especially if brands have a poor track record of using data responsibly.
• Focusing on quantity over quality – More data doesn’t lead to better insights if it’s low-quality or inaccurate.
• Failing to activate insights – Rich data is useless if brands don’t have the skills and technology to turn insights into great experiences.

This results in cookie-cutter programs that don’t evolve with customers’ needs and desires.

How zero-party data changes the game

Zero-party data enhances loyalty strategies by enabling brands to:

• Build richer customer profiles – Detailed preferences power more precise segmentation and personalization.
• Drive sales – Recommend products based on interests for effortless upsell.
• Accelerate emotional understanding – Learn what makes customers tick through direct feedback.
• Respond to feedback – Show customers you value their opinions by acting on input.

Most importantly, volunteered data builds trust and transparency. Customers feel in control of their information.

Best practices for collecting zero-party data in loyalty programs

Loyalty programs are natural vehicles for collecting zero-party data. But it takes strategy and care to do this right. Forrester recommends using their POST framework:

Pick the right people

• Identify likely segments to share ZPD based on emotional loyalty and engagement.
• Meet customers where they already are – don’t force new touchpoints.

Organize your objectives

• Align goals to business objectives like driving enrichment or retention.
• Define specific use cases for each data point collected.

Set your strategy

• Map out the types of insights needed to meet goals.
• Collect feedback on both brand and program experience.
• Prioritize quality over quantity to avoid overburdening customers.

Take stock of your technology

• Ensure your team can manage incoming ZPD.
• Identify any gaps in your martech stack and loyalty platform.
• Don’t buy new solutions without a plan for using them.

Turn loyalty into community with zero-party data

Ultimately, zero-party data helps loyalty programs evolve from transactional rewards programs into true communities.

Customers who voluntarily share information feel involved, not exploited. Brands that listen and respond to feedback nurture emotional connections. And relevant experiences driven by rich insights make every touchpoint more valuable.

Community moves beyond points. It’s built on mutually beneficial conversations and caring about more than customers’ wallets. Zero-party data opens the door for brands to deepen loyalty in ways both sides appreciate.

It’s time for brands to have better conversations

Zero-party data gives brands permission to engage customers in two-way conversations to uncover needs, passions and opinions. But they must:

• Earn trust through responsible data practices and transparency.
• Listen more than talk by providing value in exchange for insights.
• Respect privacy and control by giving customers visibility into how data is used.

Loyalty becomes shared values and vision

Today’s consumers want relationships with brands that share their values. Zero-party data helps brands connect over:

• Common interests like sustainability, local community, or wellness.
• Shared priorities around things like ethical business practices and inclusivity.
• Mutual passions that ignite a spark of emotion – from sports team pride to pet parenthood joy.

Relevance drives lifetime engagement

When brands truly understand customers’ desires thanks to zero-party data, every interaction can be elevated from generic to relevant. This builds:

• Habit-driven routines with personalized recommendations and perks.
• Emotionally resonant experiences that show the brand “gets me.”
• Ongoing value that evolves as the customer does via feedback loops.

Zero-party data helps loyalty stop living in the past. By fueling mutual understanding today, it creates community and lifetime loyalty tomorrow.

The post Leverage loyalty programs to unlock zero-party data and drive growth appeared first on Cordial.

In a world where consumers have countless options, loyalty programs serve as a powerful way for companies to stand out from the competition. By offering exclusive perks, personalized rewards, and a feeling of belonging, these programs provide customers with a sense of value and appreciation for their loyalty.

Here are 12 unique loyalty programs offered by our clients with their benefits and differentiators. So, let’s dive in and discover how leading companues are using loyalty programs to create meaningful connections with their customers.

12 unique loyalty programs

1. JOANN Smiles

Website: JOANN Smiles

Free to join: Yes

Are you a craft enthusiast? JOANN Smiles rewards you for your creative passion. By joining this loyalty program, you gain access to a range of benefits, including:

• Early access to sales and promotions
• Exclusive discounts on JOANN products
• Birthday rewards to celebrate your special day
• Invitations to member-only events and workshops

Stay connected through emails and the JOANN app to receive personalized offers and updates.

2. Eddie Bauer Adventure Rewards

Website: Eddie Bauer Adventure Rewards

Free to join: Yes

If you have a love for outdoor adventure, Eddie Bauer Adventure Rewards is perfect for you. Some highlights of this program include:

• Exclusive member discounts and promotions
• Free shipping on all orders
• Early access to new arrivals and limited-edition gear
• Invitations to member-only events and experiences
• Access to personalized recommendations and tips

Enjoy the convenience of communication through emails and the Eddie Bauer mobile app.

3. Ancient Nutrition Rewards

Website: Ancient Nutrition Rewards

Free to join: Yes

For those interested in health and wellness, Ancient Nutrition Rewards offers a unique loyalty program with benefits such as:

• Earn points on every purchase and redeem them for discounts
• Special promotions and limited-edition products exclusively for members
• Access to expert resources, educational content, and recipes
• Birthday surprises to make your day even more special

Stay informed through email updates and the Ancient Nutrition website to make the most of your membership.

4. Adore Me VIP Membership

Website: Adore Me VIP Membership

Free to join: Yes

Ladies, if you’re passionate about lingerie and intimate apparel, the Adore Me VIP Membership is tailored just for you. Take advantage of the following perks:

• Monthly credits that can be used towards purchases
• Member-exclusive pricing on all styles, including sets and sleepwear
• Free shipping and exchanges on all orders
• VIP access to new collections before they’re released
• Easy skip-a-month feature to control your spending

Connect with Adore Me through their website and app to receive personalized selections and member benefits.

5. REVOLVE Loyalty Club

• Website: REVOLVE Loyalty Club
• Free to join: Yes

Fashionistas, get ready to indulge in luxury with the REVOLVE Loyalty Club. Here’s what you can expect as a member:

• Exclusive promotions, early access, and pre-sale notifications
• VIP customer service for an enhanced shopping experience
• Birthday surprises and gifts
• Invitations to exclusive events and parties
• Access to limited-edition items and collaborations

Stay connected through emails, the REVOLVE app, and their website to stay up-to-date with the latest trends and rewards.

6. Virgin Voyages Sailing Club

Website: Virgin Voyages Sailing Club

Free to join: Yes

If you’re a travel enthusiast, the Virgin Voyages Sailing Club offers a loyalty program with incredible benefits. Set sail with the following perks:

• Access to member-only rates and discounts on cruises
• Priority boarding and check-in services
• Exclusive offers for onboard experiences, dining, and spa treatments
• Invitations to Sailing Club member events and parties
• Sneak peeks of upcoming itineraries and destinations

Receive regular updates and special offers through email and the Virgin Voyages website.

7. Paper Mart Rewards

Website: Paper Mart Rewards

Free to join: Yes

For businesses and individuals in need of packaging and craft supplies, Paper Mart Rewards offers a program with great advantages:

• Earn points on every purchase and redeem them for discounts
• Exclusive promotions and discounts throughout the year
• Early access to new products and limited-time offers
• Invitations to member-only workshops and events
• Access to personalized packaging solutions and recommendations

Stay in the loop by subscribing to their email newsletter and visiting the Paper Mart website.

8. Wines ‘Til Sold Out Wine Subscription

Website: Wines ‘Til Sold Out Wine Subscription

Free to join: No (Membership-based subscription)

Wine enthusiasts, rejoice! Wines ‘Til Sold Out offers a wine subscription program that brings exceptional wines to your doorstep. Here’s what you can enjoy as a member:

• Exclusive access to highly-rated wines at discounted prices
• Weekly flash sales and limited-time offers
• Customizable wine preferences to receive wines tailored to your taste
• Insider knowledge and detailed information about each wine
• Automatic shipments and the ability to skip a month

Join the subscription and keep an eye out for their regular email updates and offers.

9. Boot Barn B REWARDS Program

Website: Boot Barn B REWARDS Program

Free to join: Yes

Cowboys and cowgirls, the Boot Barn B REWARDS Program offers fantastic perks for western-style enthusiasts:

• Earn points on every purchase and redeem them for discounts
• Exclusive member discounts and promotions throughout the year
• Free shipping on all orders
• Birthday rewards to celebrate your special day
• Invitations to member-only events and sales

Stay connected through email updates and the Boot Barn website for the latest news and promotions.

10. Backcountry Expedition Perks

Website: Backcountry Expedition Perks

Free to join: Yes

Outdoor adventurers, the Backcountry Expedition Perks loyalty program is designed for you. Get ready to explore the benefits:

• Earn 10% back in rewards credits on every purchase
• Exclusive access to member-only sales and promotions
• Free two-day shipping on orders over $50
• Gearhead assistance for personalized gear recommendations and advice
• Early access to new gear releases and limited-edition collaborations

Receive personalized updates and offers through email and the Backcountry app.

11. Edible Arrangements Edible Rewards

Website: Edible Arrangements Edible Rewards

Free to join: Yes

For those with a sweet tooth, the Edible Arrangements Edible Rewards program delivers delicious perks:

• Free birthday gifts and surprises
• Exclusive member-only discounts and promotions
• Earn points on every purchase and redeem them for rewards
• Special offers during holidays and peak gifting seasons
• Insider updates on new products and arrangements

Stay connected through email updates and the Edible Arrangements website to make the most of your membership.

12. L.L.Bean Rewards Program

Website: L.L.Bean Rewards Program

Free to join: Yes

Outdoor enthusiasts, the L.L.Bean Rewards Program is your gateway to amazing benefits:

• Earn 4% Bean Bucks on every eligible purchase
• Free shipping with no minimum purchase required
• Exclusive member-only sales and promotions
• Special offers and discounts on outdoor activities and experiences
• Advance notice of sales and product launches

Stay up-to-date with L.L.Bean through email, their website, and the L.L.Bean app.

13. Thrive Causemetics Rewards Points

Website: Thrive Causemetics Rewards Points

Free to join: Yes

Beauty lovers with a cause, Thrive Causemetics Rewards Points program offers a unique way to shop and give back:

• Earn points on every purchase and redeem them for discounts
• Special member-only promotions and gifts
• Exclusive early access to new product launches
• Contributions to causes with every purchase
• Insider updates on product restocks and limited-edition releases

Stay connected through email and the Thrive Causemetics website to stay in the loop.

14. Tillys Rewards

Website: Tillys Rewards

Free to join: Yes

Fashion-forward individuals, the Tillys Rewards program is a must-have for stylish shoppers:

• Receive a $5 reward for every $150 spent
• Exclusive member-only discounts and promotions
• Birthday rewards and surprises
• Early access to sales and events
• Special offers and discounts throughout the year

Stay updated with Tillys through email and their website to make the most of your membership.

Keep customers coming back with a cross-channel loyalty program

The post 12 unique loyalty programs from leading companies appeared first on Cordial.

For more details, you can scan our comprehensive list of 100+ Customer Loyalty and Rewards Program Stats.

Starting with the basics: discounts win

Before diving into the best customer loyalty programs, let’s start with the basics: What do consumers want most in a loyalty program? By a landslide, discounts are the most preferred reward for a loyalty program member, regardless of age or household income level.

What could make any customer loyalty program better?

About four in five consumers admit they would switch to another brand if it had a better loyalty program. So what should marketers remember if they want to make their loyalty program better? Listen to your customers.

When we look at the top-line results from our full survey, here are six key takeaways from consumers that B2C marketers should consider:

1. Most preferred reward: discounts
2. Most preferred contact method: email
3. Most preferred contact frequency: weekly
4. Top incentive for joining a loyalty and rewards program: saving money on everyday purchases
5. Top frustration with rewards programs: rewards points that expire
6. Top reason for quitting a loyalty and rewards program: not using it enough

Which industries have the best customer loyalty programs?

When consumers were asked about which industry has the best customer loyalty programs overall, grocery stores (35%) clearly came out on top, followed by retail (19%), hotels (14%), airlines (13%), dining (10%), banking (7%), and home services (3%).

Although the everyday use and high purchase frequency with grocery store loyalty programs was not surprising, we found the affinity for them directly correlated with income level. More than half (54%) of consumers making less $15,000; 41% of those making $15,000-$50,000; 36% of those making $50,000-$99,999; and about a quarter (26%) of those making six figures or more in household income consider grocery store loyalty programs to be the best of any industry.

As for other areas where there was a clear difference in affinity toward loyalty programs, we found consumers in the Northeast (U.S.) say hotel loyalty programs are the best at twice the rate as consumer in the West (U.S.). Plus, married consumers are twice as likely as single consumers to consider airline loyalty programs the best loyalty programs overall.

About the survey methodology

Sample sourced by Dynata on behalf of Cordial during March 2023. We surveyed 500 B2C marketers and 1,000 adult consumers, age 18 and older, who live in the United States. The sample was balanced by age, gender, region, ethnicity, Hispanic origin, income, and children in household according to the U.S. Census. Age ranges for the generational groups cited in the study are: Gen Z (18-24), Millennials (25-42), Gen X (43-57), Boomers (58-75). For complete survey methodology, including weighting variables and subgroup sample sizes, please contact marketing@cordial.com.

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1. Experiential marketing and loyalty

One growing trend within customer loyalty programs is complementing traditional incentives and monetary rewards with better and more exclusive experiences. While customers might expect discounts and freebies, they can discover more ways to engage with a brand through experiential rewards that they might not be able to find with any other brand. And for marketers, this approach allows many more opportunities for loyalty program differentiation from competitors beyond falling into the discount trap.

Monetary rewards

• Instant discounts
• Points, miles, or other loyalty currency
• Free product samples
• Mobile coupons and/or rewards

Experiential rewards

• Offers that are tailored to customer preferences
• Opportunity to provide feedback to the company
• Enhanced customer service
• Ability to earn special status
• Ability to influence development of new or improved products and services
• Ability to redeem rewards for charitable donations and sustainability initiatives
• Ability to transfer rewards to friends

Experiential examples for customer loyalty

XPLR Pass

When you join XPLR Pass, the loyalty program of The North Face, you can get early access to exclusive gear, dedicated customer service via a members-only line, and access to events such as Trail Days hosted in a variety of markets. Experiential rewards also extend to your own adventures. For instance, you can earn loyalty points just for checking in at National Parks or National Monuments via The North Face mobile app. Although the program offers clear monetary incentives, such as the option to redeem every 100 loyalty points for $10 off merchandise, the experiential rewards help keep the brand top of mind beyond transactions.

myWalgreens

In 2020, Walgreens reinvented their loyalty program to focus even more on health and wellness. Beyond transactional conveniences, the program includes bonus rewards for achieving health goals and adds daily recommendations for health and wellness that are personalized for the customer. Members also can sign up for challenges, such as running 5Ks or completing exercises, to help motivate them for their health goals with reward points.

2. Emotional wellness connections

Another trend in customer loyalty is to engage emotional connections with customers so they feel special and valued. According to Forrester’s Consumer Benchmark Survey, 2022, 54% of consumers say that getting special treatment is important to them.¹

Yet, special treatment doesn’t necessarily mean unique promotions or discounts for an individual. It can be simple as showing your customer that you appreciate them. And it can pay off. Of consumers who say they feel appreciated by a brand, 83% say they plan to spend more with the brand and 87% say they will advocate for the brand.²

Examples of generating emotional loyalty

Chewy.com

Direct-to-consumer brand Chewy.com knows their customers treat their pets as family members, and their approach to customer loyalty goes the extra mile in just the right way to delight customers on an emotional level. They commissioned artists to create hand-made portraits of loyal customers’ pets to surprise thousands of customers with a personal gift. Who wouldn’t smile when opening a package with a portrait of their pup or kitty?

Grove Collaborative

Driven by a mission to promote sustainability, Grove Collaborative curates home goods, personal care, cleaning supplies, and other vetted products that are earth-friendly. And beyond protecting the planet, the brand thrives on building a better tomorrow by doing good for people and communities. They employ one simple, highly effective tactic to make their customers feel appreciated and special: They handwrite thoughtful personal notes on the packages they ship customers, with examples like “You Rock, Alice!” or “You’re amazing, Perry!”

3. Values-based buying

Especially appealing to Gen Z and Millennials, the trend of values-based buying has grown as consumers want brands to be more authentic and responsible in ways that are important to them. According to the Forrester Retail Topic Insights Survey, 2022, about half (48%) of consumers say they regularly purchase from brands or companies that align with their personal values.³

Today, some values are now more important than product price to consumers. When asked how their consideration of values has changed since before the pandemic, here’s the percentage of consumers who say they now think about particular values more ⁴:

• 44% — Prove that they treat employees well
• 43% — Show me how they keep my personal data
• 40% — Offer the products I need at the cheapest price
• 37% — Find ways to help their local communities
• 37% — Can deliver the products I need faster than anyone else
• 37% — Are committed to reducing their impact on the environment
• 33% — Stand for the same political causes that I do
• 32% — Only make products locally
• 23% — Stand for the same religious causes I do

Examples of brands embracing values to drive loyalty

Sephora

Although beauty brand Sephora has an extensive customer loyalty program, Beauty Insider, they go beyond monetary rewards and VIP experiences to offer members the chance to give back. Through Sephora’s Charity Rewards, members can donate their points to featured charities in increments equivalent to dollar amounts.

Bombas

If you’ve seen a Bombas commercial, you likely already know the brand donates one pair of socks for every pair purchased. But it doesn’t stop at socks, as Bombas expresses a mission to make and donate essential clothing items for those in need. To further engage with customers who value giving back, Bombas also offers their Giving Directory where you can volunteer at an organization near you that donates Bombas, with more than 3,500 Giving Partners across the U.S.

Learn more about the state of customer loyalty

Get more in-depth insights from Mary Pilecki, VP and Principal Analyst at Forrester, who shared perspectives and data on recent trends for customer loyalty programs in a recent presentation.

Citations

¹ Source: Forrester’s Consumer Benchmark Survey, 2022. Country: US | Base: 70,204 Online adults who belong to loyalty program(s). 

² Source: Forrester Customer Experience Benchmark Survey, US Consumers 2022. Base: 96,211 US consumes (18+) who interacted with a specific brand with the past 12 months.

³ Source: Forrester Retail Topic Insights Survey, 2022. Base: 3,871 US online adults who belong to a customer loyalty program. 

⁴  Source: Forrester April 2022 Consumer Energy Index and Retail Pulse Survey. Base: 571 US online adults. Results indicate % that state “a little more or a lot more than I did before the pandemic.”

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