Retailers launch loyalty programs at rapid pace amid membership increases

Loyalty membership is up in the US as consumers seek personalized deals and discounts.

• US consumers held an average of 19 loyalty program memberships per person in 2024—the highest rate in 10 years, according to The Bond Loyalty Report.
• In the past few months, a host of retailers have announced new or revamped loyalty programs to take advantage of consumers’ heightened interest.

This is good news for brands wanting to boost consumer spending and loyalty.

The top aspect of a personalized shopping experience consumers value is a loyalty program that’s tailored to their shopping preferences, cited as valuable by 61% of US adults, according to March 2024 data from Bizrate Insights.

• Nearly three quarters (73%) of US consumers modify their spending to maximize program benefits and 85% say loyalty programs make them more likely to continue doing business with brands, per Bond.
• Additionally, 79% are more likely to recommend brands with good loyalty programs.

Retailers who have recently launched or expanded their loyalty programs include:

• Dollar General’s Popshelf will launch an updated loyalty program by year-end, allowing customers to earn points and exclusive rewards.
• Save A Lot introduced its first-ever loyalty program in October, featuring local offers and exclusive coupons and deals.
• Wayfair also debuted a new loyalty program, which will cost $29 a year and offer 5% back in rewards.
• Lowe’s recently added a new feature to its loyalty program, Lowe’s Digital Home Platform. This platform gives members access to free, personalized information about products in their homes, including warranties, manuals, maintenance suggestions, and how-to content.

But there’s a catch: Of the 19 memberships US consumers hold, only 9.3 are active, per Bond.

• Behind payments, retailers have the highest average of active memberships (1.27 for mid-frequency retail and 1.76 for high-frequency retail), per Bond.
• As the loyalty space gets more crowded, retailers may need to get creative to keep consumers engaged.
• Gamification is one option—84% of US consumers say it’s a key feature of loyalty programs, with 55% identifying it as very or extremely important, according to data from Lobyco.

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