In today's business environment, customer loyalty is a challenge for Number List branded companies. Factors such as the pandemic, supply chain difficulties and inflation have dramatically altered consumer loyalty, forcing many brands to start over with building loyalty and offering premium/premium loyalty members a premium experience.
To gauge consumer perceptions of brand loyalty, we surveyed 2,500 consumers about their feelings about premium loyalty programs, as well as their shopping habits and interactions with brands.
Our findings show that while enrollment rates for all types of loyalty programs remain high, consumers are increasingly demanding premium loyalty. We’ve also found that brands have a valuable opportunity to engage loyal members in programs, which can help drive revenue and customer engagement.
Premium Loyalty Program : Offers instant benefits that can be used at any time in exchange for membership fees. Examples include Amazon Prime, Walmart+, and CVS CarePass.
Traditional Loyalty Programs : Offers free registration, but often requires members to make purchases over a period of time in order to be rewarded later (for example, by accumulating points).
78% of consumers are willing to pay for a premium membership.
72% of consumers have joined a premium membership.
77% of consumers are not in any premium loyalty program, but if their favorite brand offers such a membership and the benefits are valuable to them, they will.
83% of consumers say they are likely to invest in a brand's premium membership if they have already joined the brand's traditional membership.
91% of Premium Loyalty members say that if they are satisfied with the special premium member benefits offered by a brand, they are likely to choose that brand over a competitor that offers lower prices.
71% of Premium Loyalty members participate in a brand program at least once a week.
1. Premium members are highly loyal and consumer expectations are changing
1. Consumers are willing to pay for the desired loyalty benefits
For the third year in a row, most consumers admit that their brand loyalty is harder to maintain than before. About two-thirds (68%) of consumers agree with this sentiment in 2022, the same as the 2021 result.