Are you looking for ways to keep your customers loyal in 2024? Here’s a quick rundown of what’s happening:

• 60% of young shoppers (aged 18-24) love point-based loyalty programs, and 20% would stop shopping if those programs were removed (Deloitte).
• When customers feel valued, they are 82% more likely to repurchase, even when given the option to switch brands (Gartner).
• 70% of consumers spend more with brands that have loyalty programs (Deloitte).

Loyalty programs are no longer just about offering discounts—they are about building connections that last. At Nudge, we help you strengthen these connections with gamified loyalty programs that engage your customers with challenges, streaks, rewards, and more—all without any need for engineering on your part.

Now, let’s dive deeper into the loyalty program trends and stats that matter in 2024.

What is a Customer Loyalty Program?

A customer loyalty program rewards your customers for sticking with your brand. These rewards can come in many forms, from points to exclusive offers. At Nudge, we take this further with features like gamification, where loyalty is about more than just rewards—it's about making the entire customer journey fun and engaging.

Also read: Boost loyalty with the best customer retention platform

Why Are Loyalty Programs Important in 2024?

Loyalty programs have become essential in building lasting relationships with customers. They go beyond just offering rewards—they create emotional connections, drive repeat purchases, and encourage brand advocacy. Here’s why loyalty programs are critical in 2024:

• 60% of consumers aged 18-24 prefer point-based loyalty programs, and 20% would stop shopping with brands if these programs were discontinued (Deloitte).
• 82% of customers are more likely to repurchase from a brand after receiving value during a service interaction, even if offered a chance to switch (Gartner).
• 70% of consumers spend more and engage more frequently with brands that offer loyalty programs, but less than 25% of loyalty programs provide personalized member experiences (Deloitte).
• 65% of US online consumers say that members-only offers are important to them (Forrester).
• When customers feel appreciated, 88% plan to stay with the brand, 83% plan to spend more, and 87% will advocate for the brand (Forrester).
• 54% of loyalty programs provide non-transactional benefits, enhancing overall customer satisfaction (Deloitte).

Top Loyalty Program Statistics for 2024

Here are the top statistics that highlight the importance of loyalty programs in 2024:

• Millennials (ages 35-44) are most likely to embrace loyalty programs, with 71% using them to save money, while consumers aged 55 and up are least likely to use their rewards accounts (Commercetools).
• 50% of cancellations in paid loyalty programs occur within the first year of membership, with the primary reason being that consumers didn’t use the benefits enough to justify the cost (McKinsey).
• 65% of consumers find members-only offers important, adding value to loyalty programs (Forrester).
• When customers feel valued, 97% are likely to share positive word of mouth, and 86% increase their spending (Gartner).

How Do Loyalty Programs Improve Customer Retention?

Loyalty programs foster a deeper relationship between brands and customers, improving retention through value-added incentives. Here are the key stats:

• 70% of emotionally engaged consumers spend twice as much on brands they are loyal to, compared to 49% of consumers with low engagement (Oracle).
• Brands offering personalized experiences see 110% more customers adding items to their basket and 40% more spending than planned (Boston Consulting Group).
• 78% of consumers are more likely to repurchase from a brand that personalizes their experience (McKinsey).
• 95.3% of loyalty program users say being part of a program makes them more likely to shop with that company over others.
• Just under 50% of consumers say that loyalty program benefits influence their loyalty to a brand.
• 90% of companies have some form of loyalty program, including major brands like McDonald's, Sephora, Walmart, and Starbucks.

What Industries Benefit the Most from Loyalty Programs?

Different industries can leverage loyalty programs for customer retention and satisfaction. Here are the sectors that benefit the most:

• Retail and e-commerce industries lead, as 70% of consumers engage more with brands that offer loyalty programs (Deloitte).
• The service industry benefits as 82% of customers are more likely to repurchase after receiving value during service interactions (Gartner).
• Food and beverage sectors see enhanced engagement, with 60% of customers aged 18-24 enjoying point-based loyalty programs (Deloitte).
• The health and beauty industry is the most popular for loyalty programs, with 37.4% of people signing up for a program with a brand in this sector.
• Grocery shopping and supermarkets (34.6%), hotels and hospitality (34.2%), and clothing and apparel (32%) are also common industries where loyalty programs are popular.
• Ulta Beauty generates 95% of its sales from members of its loyalty program.

Digital vs. Traditional Loyalty Programs: Which Works Better?

Digital loyalty programs have overtaken traditional methods due to their flexibility and personalised experience:

• 42% of consumers prefer a consistent and unified brand experience across digital and traditional channels, especially Gen Z and Millennials (Oracle).
• Brands that incorporate gamification into their customer engagement strategies see a 47% rise in engagement, a 22% increase in loyalty, and a 15% rise in brand awareness (Snipp).
• Omnichannel loyalty programs are a top priority, with 100% of top retailers focusing on personalisation across digital and physical platforms (McKinsey).
• 53% of consumers paid for a customer loyalty program in 2023, showing a rise from 32% in 2022 and 17% in 2021.
• The average person is a member of 7.5 loyalty programs, showing how digital and traditional programs coexist and multiply.

How Do Mobile Loyalty Programs Shape 2024?

Mobile loyalty programs are reshaping how customers interact with brands. Here’s how mobile-first loyalty programs are shaping 2024:

• 63% of US adults are willing to share personal information in exchange for benefits like loyalty points or early access to products (Forrester).
• Mobile loyalty programs help improve customer lifetime value by 48% and increase conversion rates by 15% when used in email marketing campaigns (Entrepreneur).
• 22% of consumers are happy to share their data in return for personalised loyalty experiences (Deloitte).

What is the Impact of Personalisation in Loyalty Programs?

Personalisation is a game-changer for loyalty programs in 2024. Here’s why:

• 71% of consumers expect personalised interactions from brands, but only 22% of businesses provide this level of service (McKinsey).
• Highly personalised experiences lead to 110% more purchases and 40% higher spending than anticipated (Boston Consulting Group).
• 78% of customers are more likely to stick with a brand that personalises their experience (McKinsey).
• 33.3% of consumers who don’t use loyalty programs cite concerns about sharing personal information, indicating the importance of privacy and data protection in personalisation.

Customer Loyalty Program Trends for 2024

Stay ahead of the curve by incorporating these loyalty program trends:

• Gamification is on the rise, with brands seeing a 47% increase in engagement and a 22% rise in loyalty when incorporating gaming elements (Snipp).
• Emotional loyalty is becoming more critical, as 62% of customers feel an emotional connection to the brands they buy from (Salesforce).
• 73% of B2B buyers now expect personalisation similar to B2C experiences, making tailored loyalty programs vital for all industries (Bloomreach).
• The global loyalty management market was valued at $10.86 billion in 2023 and is predicted to reach $23.69 billion by 2028, reflecting the growing demand for loyalty programs.
• 94.3% of people are members of at least one loyalty program that offers rewards or discounts.

How Can Businesses Maximize Loyalty Programs?

To get the most out of loyalty programs, businesses should focus on providing value, personalizing interactions, and engaging customers through various touchpoints:

1. Create Tailored Experiences

Every customer is different, so a one-size-fits-all loyalty program won't cut it. Businesses should consider segmenting their customers based on purchase behavior and preferences, and offer personalized rewards. Nudge helps you do this effortlessly through loyalty programs, gamified challenges and streaks that can be customized to suit your audience. For example, you can offer higher rewards to your most loyal customers while keeping casual shoppers engaged with enticing perks.

2. Use Gamification to Drive Engagement

Integrating gamification into your loyalty programs can significantly enhance customer participation. With Nudge’s loyalty programs, you can turn earning points and redeeming rewards into an interactive experience. By incorporating tiered rewards. challenges, polls, and referral streaks, you make the process fun, increasing the likelihood that customers will engage consistently.

3. Simplify and Reward More than Purchases

Customers appreciate being rewarded for more than just purchases. Offer points for referrals, participating in quizzes, or even sharing your content on social media. Nudge’s gamified referrals feature helps automate this, driving organic growth without added effort.

4. Incorporate a Strong Visual Element

People are visual creatures, so incorporating visually engaging elements can make your loyalty program more appealing. Use shoppable stories and videos to highlight top rewards or new challenges. 

Through Nudge's PiP videos and shoppable stories, businesses can offer a seamless experience where customers can watch a video and immediately interact with the loyalty program.

5. Measure Success and Iterate

A good loyalty program requires constant monitoring and adjustment. Nudge’s in-app messages and surveys make it easy to gather feedback from your customers to understand what works and what doesn’t. These insights allow businesses to tweak their program based on real data, ensuring long-term success.

Conclusion

Customer loyalty programs in 2024 are not just about rewards—they’re about building meaningful relationships and delivering value. If you're looking to boost retention and engagement, Nudge can help. We offer loyalty programs with gamified elements like challenges, streaks, and personalized rewards, all designed to keep your customers coming back, without the need for engineering efforts.

Ready to see the difference? Book a demo with Nudge and discover how our loyalty solutions can elevate your business.