While discounts and points still motivate participation in loyalty programs, softer perks – like exclusivity, early access, and VIP treatment – rank among the strongest loyalty drivers across generations, according to new research from GWI and Razorfish.
“These benefits make people feel seen, not just sold to, creating the kind of sticky loyalty that transcends price and promotion,” according to the study. The findings were based on interviews with 2,000 U.S. adults conducted from June 19 to July 2.
Asked which soft perks as part of loyalty programs had “high value or very high value,” the favorite perk among respondents was access to limited edition drops, cited by 30%; followed by invitation to exclusive events, 28%; and receiving exclusive content (behind-the-scenes content, product previews, etc.), also 28%.
The research found consumers actively participate in the programs they are a part of, with the goal of receiving points and rewards for their loyalty (57%). For 45% of respondents, the benefits of loyalty programs have become more valuable than they used to be.
According to Forrester’s Retail Topic Insights 2 Survey, 2024, financial rewards are the most important elements of loyalty programs to U.S. consumers. Of the U.S. adults surveyed, instant discounts, 76%; and loyalty currencies like points, miles, and stars, 74%; topped the list of important benefits in a loyalty program. However, consumers also found to value experiential rewards. Over half of U..S online adults believe enhanced customer service, offers tailored to their preferences, and the ability to earn and use points across different brands and to earn special status are also important.
John Pedini, Forrester’s principal analyst, wrote in a blog entry, “Members prioritize financial benefits regardless of region, but they also want a loyalty program that makes them feel special. B2C marketers can do this by providing members with exclusive access to benefits such as limited-release products, first access to deals, and member-only events.”
Is There a Generational Divide When it Comes to Retail Loyalty Programs?
A survey over 2,000 U.K. consumers earlier this year found 55% are more likely to join loyalty programs amid economic uncertainties. Of the respondents, 84% indicated discounts motivate them to join loyalty programs. However, 73% of Gen Z and millennials say experience-based rewards like early access to products, exclusive events, or opportunities to contribute to new product development motivate them to enroll.
Charlie Casey, CEO of LoyaltyLion, said: “This research shows that loyalty is about more than discounts. In uncertain times, shoppers are looking for value and security. Brands that treat loyalty as a relationship rather than a transaction will stand out.”
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