Here are some highlights from the Global Customer Loyalty Report 2024: 

• 2x more companies want to increase their investment in customer retention than in acquisition. 
• 81.4% of program owners confirmed that their loyalty program was helpful during the economic downturn 
• 9 out of 10 companies offering a loyalty program plan to revamp their program in the next 3 years. 
• 6.5 out of 10 companies would like to replatform and revamp their loyalty program. 
• 9 out of 10 loyalty program owners reported a positive ROI, and their average ROI is 4.8X. In North America, the average ROI stands at 5.6X. 

Loyalty Programs: A Key Tool to Overcome the Financial Crisis 

Over the past few years, the market has faced numerous challenges, from the COVID-19 crisis to the financial downturn. Nevertheless, companies’ faith in loyalty marketing and loyalty programs remains strong. 

As evidenced in last year’s Global Customer Loyalty Report, the sentiment among companies was positive regarding the role of loyalty programs. Indeed, 87.2% of companies offering a program trusted loyalty programs to help them overcome the economic downturn. 

The trust in loyalty programs turned out to be well founded. In the 2024 report, 81.4% of companies confirmed that their program did help during the economic downturn. 

Moreover, according to the data gathered for the 2024 Global Customer Loyalty Report, 67.0% of companies plan to increase their investments in customer loyalty during the economic downturn. In contrast, only 31.2% of companies plan to invest more in acquisition during the same period. 

Positive Loyalty Program Return on Investment Continues to Be the Norm  

One of the tangible benefits of loyalty marketing is the ability to measure each action and precisely calculate the return on investment (ROI). Since its first edition in 2022, the Global Customer Loyalty Report has presented a benchmark of the ROI of loyalty programs. Year after year, the data confirms that loyalty programs are predominantly revenue centres, thanks to a consistently high positive ROI. 

In the 2024 edition, this trend has gotten stronger, with 89.6% of companies reporting a positive return on investment for their loyalty programs. Furthermore, companies who reported a positive ROI stated that their program generates 4.8 times more revenue than it costs. 

We have isolated this data specifically for the North American market. While a slightly lower percentage of North American companies report a positive return on investment compared to the global market, at 77.8%, the ROI is higher. Indeed, those declaring a positive ROI reveal that their program generates 5.6 times more revenue than it costs. 

Calculating return on investment is a crucial step in the development and performance measurement of your loyalty strategy. If you have questions about the approach to adopt for accurately measuring the ROI of your program, our team of experts can guide you through this process. 

More and More Loyalty Programs Being Revamped 

In response to the ever-evolving landscape of customer expectations, an increasing number of businesses around the world are making significant changes to their loyalty programs. In fact, 60.3% of companies offering a loyalty program have made significant changes to their program in the last two years.  

This impressive number is growing and represents an increase of 3.3 percentage points compared to the 2023 report. The question that arises is whether these changes are profitable. The answer is positive. According to our research, 55.8% of companies offering a loyalty program reported being satisfied or very satisfied with their program. By “satisfied” and “very satisfied,” we mean that a program contributes to sales, delivers great ROI, and that their customers love it. 

When isolating companies that revamped their program, 64.2% of them say they are satisfied or very satisfied with their loyalty program. This represents an increase of 8.4 percentage points compared to the global average and 21.2 percentage points compared to companies that have not made any changes.  

Does the future still hold changes for loyalty programs? Certainly! According to the 2024 report, 9 out of 10 companies offering a loyalty program plan to revamp it in the next three years. So, we can expect a lot of new developments and innovations. 

What are the loyalty strategies offering an optimal cost-benefit ratio?  

One of the main goals of the 2024 Global Customer Loyalty Report is to provide companies looking to invest in customer loyalty with a tool to do so wisely. To help decision makers identify the best available opportunities, the report explores strategies that have the greatest impact on customer satisfaction and retention, as well as those offering the best cost-benefit ratio. 

Among these, micro-targeting and diverse reward options have stood out. 

Micro-Targeting: a Strong Strategy to Increase Customer Satisfaction and Retention

Unlike mass marketing, micro-targeting focuses on a smaller segment of customers who share similar socio-demographic information, buying behaviours, and preferences. In this year’s report, 87.7% of respondents believe that micro-targeting has a positive impact on customer retention and satisfaction. 

Micro-targeting is also the strategy ranking first in terms of return on investment. Indeed, 67.1% affirm that micro-targeting is profitable. These respondents stated that the benefits are greater than the costs. 

Offering Diverse Reward Options to Improve Customer Satisfaction

Providing diverse ways for customers to redeem rewards through a loyalty program has a positive impact on customer loyalty and member engagement. This allows members to redeem their points and rewards according to their preferences. 

The data collected for the 2024 report confirms this. Indeed, 78.1% of respondents believe that offering diverse reward options has a positive impact on customer retention and satisfaction. 

Diverse reward options also prove to be interesting for businesses. In fact, 46.9% of companies claim that this strategy is profitable, indicating that the benefits are greater than the costs. Furthermore, to diversify reward options, partner offers can be a very interesting and profitable solution for businesses. 

To learn more about the current state of loyalty, investments in loyalty marketing, and the most promising strategies, be sure to download the 2024 Global Loyalty Report. This report has been created to equip decision makers to make informed decisions and stay ahead in their loyalty strategy. 

Do you need advice or want to learn more about the 2024 Global Loyalty Report? We are experts in loyalty programs. 

Contact us to learn more about our strategic and operational support services for businesses.