How brands can elevate loyalty programmes

Point-based and tiered programmes dominate the sector.

Brands are increasingly focusing on enhancing customer engagement through effective loyalty programmes.

According to Euromonitor’s Loyalty Brand Tracker 2024, point-based and tiered programmes dominate the loyalty sector, with 77% of the 100 tracked brands offering points and 59% utilising tiers. 

Consumers, particularly in the mass market, often associate loyalty benefits with redeemable points for discounts or complimentary services, driving the types of rewards available today.

Experiential rewards are also becoming increasingly popular, with 49% of brands integrating them into their loyalty structures. Partnerships and omnichannel coverage follow closely, emphasising the need for versatility in delivering a comprehensive customer experience across online and offline channels. 

Moreover, traditional loyalty schemes with transactional offers continue to lead, comprising 58% of the brands surveyed, compared to 43% for next-gen programmes.

Euromonitor also identified three key consumer segments, including Loyalty Novices, Loyalty Explorers, and Loyalty Enthusiasts. 

Conducted from March to April 2024, the survey indicates that successful loyalty programmes must prioritise convenience and experiences. Loyalty enthusiasts particularly favour experiential rewards whilst explorers emphasise the importance of a seamless customer journey. Loyalty novices, meanwhile, will subscribe to one to two paid schemes to enjoy exclusive and diverse rewards.

The Q2 2024 Engagement Index highlights the effectiveness of consumer engagement amongst top brands. Higher app downloads and web traffic correlate with better consumer interaction. Additionally, seasonal travel trends also influence app usage and engagement metrics.

“To thrive in the loyalty landscape, businesses must focus on more than just building a large customer base,” the report said. “They should intensify their efforts to enhance customer engagement in alignment with their focus on loyalty as a strategic priority, ensuring the overall effectiveness of their strategy.”