100+ customer loyalty and rewards program stats

In March 2023, Cordial conducted surveys with U.S. consumers and B2C marketers about customer loyalty and reward programs. For the purpose of the surveys, loyalty programs included frequent flier programs, grocery store club cards, hotel points programs, retailer rewards, restaurant rewards, cash-back credit cards, or similar loyalty and rewards programs.

If you’d like to cite or copy any of these statistics, please credit “Cordial’s 2023 Survey on Customer Loyalty and Rewards Programs” as your primary source and/or link back to this page.

Enrollment in loyalty programs

• Half (49%) of all consumers are enrolled in two to four loyalty programs.
• Gen Z are enrolled in the fewest number of loyalty programs. They are twice as likely to not be enrolled in any loyalty programs at all, compared to other generations. 
• About one quarter (24%) of Gen Z are not enrolled in any loyalty programs.
• Only 6% of Gen Z are enrolled in five or more loyalty programs.
• Boomers are enrolled in the highest number of loyalty programs, with 39% enrolled in at least five programs.
• While 42% of consumers with household incomes over $100,000 are enrolled in five or more loyalty programs, only 19% of consumers with household incomes less than $100,000 are enrolled in five or more loyalty programs.
• Single consumers are about twice as likely as married consumers to not be enrolled in any loyalty programs at all.
• Married consumers are more than twice as likely as single consumers to be enrolled in five or more loyalty programs.
• About 82% of married consumers and 62% of single consumers are enrolled in at least two loyalty programs.
• About 54% of men and 41% of women say they are enrolled in a loyalty program that requires a membership fee.
• About 64% of consumers who have children under 18 living in their household say they are enrolled in a loyalty program that requires a membership fee. Conversely, about 63% of consumers who do not live with any children say they are not enrolled in any loyalty programs that require a membership fee.
• While roughly two thirds (63%) of Millennials are enrolled in loyalty programs that require a membership fee, only one third (35%) of Boomers are enrolled in loyalty programs that require a membership fee.
• One in five (21%) consumers says they would only need to shop once with a brand before they would consider joining its loyalty program.
• One in five (20%) Gen Z say they would need to shop with a brand at least 10 times before they consider joining its loyalty program, while only one in 10 of all other generations said the same.
• 78% of consumers say they would need to shop five or fewer times with a brand before they would consider joining its loyalty program.
• About three quarters (74%) of consumers say recent economic changes make them more likely to enroll in a loyalty program.

Consumer incentives to join loyalty programs

• About three quarters (73%) of consumers say they would join a brand’s loyalty program if they thought they would be treated better as a customer.
• Consumers say saving money on everyday purchases and getting free perks are their top two most desired incentives for joining loyalty programs.
• About half (49%) of all consumers consider getting immediate discounts as a top incentive to join a loyalty program.
• About 46% of consumers consider getting exclusive offers as a top incentive to join a loyalty program.
• Getting exclusive offers is the top incentive for Gen Z to join a loyalty program, with free perks, immediate discounts, saving money on everyday purchases, and rewards other than cash rounding out their top five desired incentives.
• About one quarter (23%) of Millennials consider participating in VIP experiences as a top incentive to join a loyalty program, compared to 13% of Gen Z, 19% of Gen X, and 10% of Boomers.
• While 55% of Millennials note that being able to save money on everyday purchases influences them most when they consider joining a loyalty program, 53% note getting free perks and 50% note getting exclusive discounts as top desired incentives.
• About two thirds (63%) of Gen X say getting free perks is the top loyalty program incentive.
• More than half (52%) of Gen X say that getting immediate discounts influence them most when they consider joining a loyalty program, which is significantly higher than other generations. 
• While 71% of Boomers note that being able to save money on everyday purchases influences them most when they consider joining a loyalty program, 63% also note getting free perks was one of their most desired incentives.
• Consumers who live with children under 18 are more than twice as likely as consumers who do not live with children to note that participating in VIP experiences would influence them to join a loyalty program.
• Consumers who live with children under 18 are more than twice as likely as consumers who do not live with children to want exclusive deals or products as their preferred reward in a loyalty program.
• Four in 10 consumers say receiving rewards other than cash influences them to join loyalty programs.
• About two thirds (65%) of consumers who do not live with children note that being able to save money on everyday purchases influences them to join a loyalty program.
• Less than a quarter (23%) of consumers say planning to purchase often from a brand influences them to join a loyalty program.

Best loyalty and rewards programs

• Among several industries to choose from, consumers say the following industries have the best loyalty programs: grocery (35%), retail (19%), hotel (14%), airline (13%), dining (10%), banking (7%), home services (3%). 
• Consumers who make less than $200,000 in household income rank grocery store loyalty programs as the best loyalty programs overall, while those making more than $200,000 rank airline loyalty programs as the best.
• About 21% of consumers in the Northeast (U.S.) say hotel loyalty programs are the best, while 11% of consumers in the West (U.S.) do.
• Affinity for grocery store loyalty programs directly correlates 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 the best.
• Married consumers are twice as likely as single consumers to consider airline loyalty programs the best loyalty programs overall.
• Gen Z and Millennials are twice as likely as Gen X and Boomers to say dining loyalty programs are the best loyalty programs overall.
• Millennials are about twice as likely as Gen Z and Boomers to consider banking loyalty programs as the best — and more than four times as likely as Gen X.
• Boomers are about twice as likely as Gen Z and Millennials to consider hotel loyalty programs as the best.

Consumers’ usage of loyalty programs

• Two thirds (67%) of consumers say they are more likely to use a loyalty program if the brand has an app.
• Nearly 88% of consumers with one or more children under 18 in their household say they are more likely to use a loyalty program if the brands has an app.
• Just more than half (55%) of consumers living with no children say they are more likely to use a loyalty program if the brand has an app.
• Nearly three quarters of consumers (72%) say they are more likely to recommend a brand if it has a loyalty program.
• Less than half (44%) of consumers say they have purchased something for someone else — and have them pay them for the purchase — just so they could earn points or rewards in a loyalty program.
• More than half (58%) of Gen Z and Millennials say they have purchased something for someone else — and have them pay them for the purchase — just so they could earn points or rewards in a loyalty program.
• Only one quarter (25%) of Boomers say they have purchased something for someone else — and have them pay them for the purchase — just so they could earn points or rewards in a loyalty program.
• About 61% of consumers who live with children under 18 say they have purchased something for someone else — and have them pay them for the purchase — just so they could earn points or rewards in a loyalty program.
• About 35% of consumers who do not live with children say they have purchased something for someone else — and have them pay them for the purchase — just so they could earn points or rewards in a loyalty program.
• Nearly one quarter (23%) of consumers say they would quit a loyalty or rewards program if they didn’t think it was easy to use.

Contact methods with loyalty programs

• Two thirds (66%) of consumers prefer to be contacted via email about loyalty programs, while slightly less than one third (30%) prefer to be contacted via text messaging or mobile app.
• About half (48%) of Millennials prefer to be contacted via a mobile app about loyalty programs, while 35% of Gen Z, 30% of Gen X, and only 10% of Boomers do.
• About one quarter (23%) of consumers prefer to receive direct mail related to loyalty programs in which they are enrolled.
• Only 11% of consumers prefer to receive phone calls about loyalty programs in which they are enrolled.
• Only 27% of consumers say they are OK with a brand contacting them daily about a loyalty program.
• About one in five (22%) of consumers say they do not want to be contacted more frequently than monthly about a brand’s loyalty program.
• Consumers who live with children under 18 in their household or more than twice as likely as consumers not living with children to prefer to be contacted via a mobile app about loyalty programs.
• About 43% of consumers who live with children under 18 in their household prefer to be contacted about loyalty programs via text messaging, while only 23% of consumers who do not live with children do.

Consumers’ frustrations with loyalty programs

• Among consumers’ biggest frustrations with rewards programs, rewards points that expire are their most noted complaint.
• While 47% of consumers say rewards points that expire is a top frustration, only 39% of B2C marketers think expiring points are a top frustration among consumers.
• About four in 10 (43%) consumers are frustrated about the length of time it takes to earn rewards in rewards programs.
• One third (33%) of all consumers say they don’t like it when loyalty programs require a membership fee.
• About one third (32%) of Gen Z think rules or restrictions in rewards programs are too complicated, while 24% of Millennials, 26% of Gen X, and 22% of Boomers feel the same.
• About one quarter (26%) of all consumers are frustrated the value of rewards points in loyalty programs seems to decrease over time.
• About one third (32%) of consumers say loyalty programs lack rewards that are relevant to them.
• About 37% of consumers say one of their biggest frustrations with loyalty programs is that the value of rewards offered is too low.
• About 27% of consumers say one of their biggest frustrations with loyalty programs is that there are too few options for earning rewards points.
• One in five (21%) of consumers say one of their biggest frustrations with loyalty programs is having a cap limit on cash-back or rewards.

Consumers’ reasons for leaving loyalty programs

• The number one reason consumers cite for leaving a loyalty program is that they did not use it enough, while the number two reason is that they did not save a lot of money.
• About four in five (81%) of consumers say they would switch to another brand if it had a better loyalty program.
• About three quarters (73%) of consumers say they would consider unenrolling if a brand contacts them more frequently than weekly about their loyalty program.
• Half (50%) of Boomers say they would leave a loyalty program because they no longer want to pay a membership fee.
• About half (48%) Boomers say they would consider quitting a loyalty program if it does not offer rewards that are relevant to them.
• More than a third (36%) of consumers say they would leave a loyalty program if they did not earn rewards fast enough.
• Four in 10 (41%) of consumers say they would quit a loyalty program because they no longer wanted to pay a membership fee.
• More than a third (35%) of consumers say they would quit a loyalty program if they thought they no longer needed the brand’s products or services.

B2C marketers on customer loyalty program features

• When it comes to channels that B2C brands use within their loyalty program experience, 89% use email, 77% use mobile apps, 66% use text messaging, 58% use phone calls/voicemails, and 54% use direct mail.
• When it comes to the types of rewards B2C brands offer in their loyalty programs, 89% offer discounts, 89% offer exclusive deals/products, 61% offer free items, and 2% offer other types of rewards.
• About 72% of companies with fewer than 250 employees offer free items to their loyalty program members, while 57% of companies with 250+ employees offer free items.
• About half (49%) of B2C marketers say their brand has a spend-based loyalty program, while about one in five (19%) say their brand has a tier-based system integrated in their loyalty program.
• About two thirds (63%) of B2C marketers say their brand uses points in their loyalty program.
• More than half (56%) of B2C marketers say their brand’s loyalty program offers free perks, while one third (33%) say their program offers cash-back incentives.
• About two in five (43%) of B2C marketers say their brand has some form of community (e.g., a brand-operated forum or online club where customers share content, ask questions, or participate in special events) connected with its loyalty program.
• Nearly one third (31%) of B2C marketers say their brand includes a refer-a-friend feature within their loyalty program.

B2C marketers on customer loyalty program enrollment

• About six in 10 (58%) B2C marketers say their brand has a loyalty program.
• More than two thirds (68%) of B2C companies with fewer than 250 employees say they have a loyalty program, while just more than half (54%) of brands with 250+ employees say they do.
• While four in five (80%) of smaller B2C companies with fewer than 250 employees require their customers to pay a fee to join their loyalty program, about two in three (65%) of larger companies with 250+ employees require a fee.
• More than two thirds (70%) of B2C marketers say their annual retention rate for their loyalty program is higher than 50%.
• When it comes to the annual retention rate for their loyalty program, 5% of B2C marketers say their rate is below 25%, 25% say their rate is 25%-50%, 59% say their rate is 50%-75%, and 11% say their annual retention rate is higher than 75%.
• When it comes to marketing budgets, 45% of B2C marketers who had a budget decrease in the past year say their annual loyalty program retention rates are lower than 50%, while only 25% of B2C marketers who had no budget decrease in the past year say their annual loyalty program retention rates are lower than 50%.
• About two thirds (68%) of B2C marketers say their loyalty program enrollment has increased in the past 6 months, while 27% say it stayed the same and only 5% say it decreased.
• About 15% of B2C marketers who had a marketing budget decrease in the past year say their loyalty program enrollment rates have decreased in the past six months, while only 2% of B2C marketers who did not have a marketing budget decrease say the same.

B2C marketers on customer loyalty strategies

• Nine in 10 (90%) of B2C marketers at brands with loyalty programs say their brand has run promotional campaigns specifically for their loyalty program in the last 6 months.
• About three quarters (74%) of B2C marketers say their brand currently runs automated marketing campaigns to increase customer loyalty.
• When it comes to how often B2C brands contact loyalty program members, 24% contact members daily, 50% contact members weekly, 20% contact members monthly, and 5% contact members with another frequency.
• About four in 10 (42%) B2C marketers say their brand’s customer loyalty strategies are highly effective, while 50% say they are somewhat effective, and 8% say they are not effective.
• Nearly two thirds (63%) of B2C marketers who include a mobile app as part of their loyalty program experience say their customer loyalty strategy is highly effective.
• B2C marketers who work at brands that do not have a customer loyalty program are 10 times more likely than B2C marketers who work at brands that do have customer loyalty programs to say their brand does not have effective customer loyalty strategies.

B2C marketers on customer loyalty program challenges

• For smaller companies with fewer than 250 employees, B2C marketers say the biggest challenge for creating and growing a customer loyalty program is a lack of budget for marketing tech.
• For companies with more than 250 employees, B2C marketers say the biggest challenge for creating and growing a customer loyalty program is a lack of priority due to competing business needs.
• Half (50%) of B2C marketers who work at brands with a loyalty program say a lack of budget for marketing tech is one of their biggest challenges in growing their loyalty program.
• While 84% of B2C marketers who work at brands with a loyalty program say they are seeking new martech solutions in 2023, only 42% of B2C marketers who work at brands without a loyalty program are doing the same.
• Two in five (41%) B2C marketers who work at brands with a loyalty program say a lack of innovation is one of their biggest challenges in growing their loyalty program.
• Two in five (39%) B2C marketers who work at brands with a loyalty program say a lack of marketing team members is one of their biggest challenges in growing their loyalty program.
• While more than a third (34%) of B2C marketers at smaller companies with fewer than 250 employees say a lack of leadership buy-in is a big challenge in creating or growing a loyalty program, less than a quarter (23%) of B2C marketers at companies with 250+ employees say the same.
• Half (50%) of B2C marketers who work at brands who do not have a loyalty program say a lack of priority due to business competing needs is their biggest challenge to creating a loyalty program.
• Most B2C marketers say their brand does a better job at customer retention (57%) than customer acquisition (43%).

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.