The Power of Loyalty Programs: Driving Brand Loyalty & Revenue

In the highly competitive landscape of today’s market, establishing brand loyalty is crucial for sustained success. Loyalty programs, when executed effectively, have the potential to create emotional and transactional connections with customers, driving repeat purchases and advocacy. This article explores the significant impact of loyalty programs, backed by data-driven insights, and provides tailored recommendations for different industries.

Loyalty Programs: Driving Customer Loyalty and Engagement

Loyalty programs hold immense potential to foster customer loyalty and keep them coming back. Even in the face of fierce competition, price fluctuations, and economic downturns. According to our 2022 State of Brand Loyalty survey, a majority of global shoppers indicated that being loyal to a brand translates to their inclination to “tend to buy from the same brand.” In addition to recommendations, the sense of pride associated with the brand plays a significant role in fostering brand loyalty.

Data-Driven Insights: Unveiling the Benefits of Loyalty Programs

To gain a deeper understanding of loyalty programs’ impact, we analyzed data from various industries and verticals. This extensive research enabled us to establish benchmarks and offer valuable insights into the return on investment (ROI). Repeat purchase rate (RPR), and average revenue per customer. The results showcase the remarkable potential of loyalty programs:

Key Takeaways

Within just 90 days of implementing a loyalty program, brands can expect to experience:

8.5x ROI

A 164.4% increase in RPR among loyalty redeemers

An 88.5% increase in average revenue per customer when comparing loyalty redeemers to non-redeemers

A 71.3% increase in purchases per customer when comparing loyalty redeemers to non-redeemers

It’s important to note that the performance of loyalty programs varies across industries. In this regard, we have crafted industry-specific benchmarks and recommendations to address the unique challenges faced by beauty, apparel & accessories, and health brands.

Beauty: Enhancing Revenue and Product Adoption

Beauty brands, in particular, witness a 66.3% increase in revenue per redeeming customer within 90 days. However, they often struggle with average order value (AOV) due to limited customer purchases beyond their preferred products. By implementing a well-executed loyalty program, you can enhance the average order value (AOV) and stimulate the adoption of products across different categories.

 Our Recommendations for Beauty Brands

  1. Offer rewards such as free shipping or complimentary products with a minimum purchase to encourage members to buy larger sizes of their preferred products or try new offerings. Maximizing product adoption requires strong cross-selling strategies, including personalized recommendations.
  2. Implement targeted promotional campaigns, such as double- or triple-point days, to increase program participation rates. High engagement is a key driver of program success. Active shoppers who redeem perks and accumulate points contribute to enhanced loyalty and revenue.
  3. Leverage sample products as rewards to not only incentivize purchases but also clear excessive inventory and promote new product adoption. These samples serve as a gateway to introduce customers to a wider range of offerings.

Apparel & Accessories: Fostering Engagement and Increased Revenue

For apparel & accessory brands, loyalty programs result in an average increase of 50.2% in revenue per redeeming customer within 90 days. The seasonal nature of fashion purchases poses a unique challenge, as the average time between purchases spans three months or more. Implementing a well-designed loyalty program keeps consumers engaged throughout the entire customer lifecycle.

 Our Recommendations for Apparel & Accessory Brands

  1. Offer limited-time loyalty promotions, such as bonus points for reaching a specific spending threshold or making a certain number of purchases. These promotions not only increase revenue and repeat purchase rates (RPR) but also generate an average program participation rate of 7.2%.
  2. Implement punch card campaigns to keep customers engaged and motivated to make a specific number of purchases or acquire a set number of items. To deliver personalized and impactful messages that go beyond the typical purchase cycle. Segmented SMS and email campaigns tailored to customer behaviour, VIP tiers, and point balances prove to be highly effective.

Health: Educating Customers and Driving Revenue Growth

Health brands experience an average increase of 56.7% in revenue per redeeming customer within 90 days. However, many brands in this industry struggle to educate customers about their products and face the misconception that their focus is solely on transactions. Overcoming these challenges and fostering program adoption is crucial for sustained success.

Our Recommendations for Health Brands

  1. Reward shoppers for engaging with educational content, such as blog posts and recipes. By utilizing their earned points or perks, customers are more inclined to learn about your health products and understand their benefits, applications, ingredients, and more.
  2. Emphasize program promotion as a vital aspect of loyalty program success. Before launching the program, consider various channels for promotion, including on-site teasers and countdowns, organic social media campaigns, on-site banners linking to the rewards page, email campaigns, and SMS campaigns. Amplifying program awareness leads to increased program adoption and engagement.


Loyalty programs have emerged as powerful tools to foster brand loyalty, increase revenue, and drive customer engagement. With carefully tailored strategies and industry-specific recommendations, brands in beauty, apparel & accessories, and health can unlock the full potential of loyalty programs. By prioritizing customer needs and continuously optimizing loyalty initiatives. Brands can secure their competitive edge and establish long-term relationships with their valued customers.

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