Customer loyalty program usage is soaring – why this is not a tactic to miss
For businesses aiming to build or enhance their customer loyalty programs, Matthew Forzan, founder and managing director of Yoghurt Digital, reveals his expert strategies and insider tips to help brands build stronger loyalty programs that truly resonate with customers.
With customer loyalty program usage skyrocketing by 28% in 2024 and projected to rise higher in 2025, businesses are rushing to expand their programs to capitalise on the trend. However, in their haste, newcomers and even established brands testing new strategies may be disappointed with the results.
Consumers are 10% more likely to shop with a brand that offers an exceptional loyalty program. Rewards not only build customer loyalty but also prove to be a significant asset for businesses. A company’s most loyal customers are typically its most profitable. As the relationship deepens over time, loyal customers become cheaper to serve. Moreover, they evolve into brand advocates, purchasing more, paying premium prices, and referring new customers.
Despite this, companies still fall into the trap of treating rewards as short-term promotional tools or limited-time offers. While these tactics may drive temporary interest or attract customers, they often fall short of creating lasting loyalty and can become a financial burden. For example, a restaurant offering a blanket 25% discount to all customers can backfire. While it may attract short-term traffic, it often encourages price-sensitive behaviour rather than building repeat business, turning into a financial strain instead of a true loyalty driver.
