Report: Loyalty programs kept customers engaged during Covid

New antavo report into customer loyalty programs finds those measuring ROI are satisfied, that more investment is on its way and highlights key omnichannel challenges facing brands

More than six in 10 brands with customer loyalty programs claim these offerings have kept customers engaged during Covid-19, with higher tier members recording 30 per cent higher purchase frequency.

That’s just one of the many findings of the new global survey into customer loyalty programs and plans by technology company, antavo, entitled Global Customer Loyalty Report 2022.

According to the report, 62 per cent of companies surveyed reported loyalty programs have kept customers engaged, and 93.1 per cent of those measuring ROI claim positive results. Yet only one-third offering a loyalty program said their organisations are measuring the ROI of loyalty.

Just over six in 10 (61 per cent) invested in their loyalty programs during the pandemic, while 72 per cent are now actively planning further revamps over the next three years.

Overall, 56 per cent said they were satisfied or very satisfied with their customer loyalty programs. This was tempered by the 42.3 per cent reporting neutral satisfaction, indicating more could be achieving better results from loyalty programs.

Top motivating factors for running loyalty programs are increasing customer engagement, increasing overall revenue, improving the way the company uses member data and leverages insights, collecting data, and increasing customer experience. By contrast, those companies who are planning to introduce a loyalty program cited improving customer satisfaction and improving personalisation among their top five motivators.

The report also found 77.3 per cent of companies who have a loyalty program that doesn't reward member behaviour outside of the buying cycle plan to change that within the next three years.

Tiered programs were among the stronger performers, with those running such offerings claiming a 1.8x return on investment compared to those without tiers. The report also found 30 customers in top tiers purchased at a 29.6 per cent higher frequency rate than those sitting on the lowest tier of such programs, and that companies were seeing 2.1x more spend on average by customers in higher tiers.

Antavo also looked at the significance of customer loyalty programs, finding a US-skewed Starbucks Rewards, Sephora’s Beauty Insider, Amazon Prime and Nike Membership among the most inspiring offerings in the market.

The top challenge identified by survey respondents for 2021 – 2023 was offering a seamless omnichannel loyalty experience. This was followed by integrating loyalty marketing into the company’s main strategy and collecting and using customer data.

In terms of wider marketing strategies, loyalty marketing ranked third after digital transformation and ecommerce. Across respondents, 22.8 per cent of all budgets were being allocated to customer loyalty program management and CRM.

The antavo report was based on surveying 325 corporates globally as well as tracking data from 25 million member actions and was supplemented by insights from PwC and industry professionals. It also includes a raft of recommendations around how to manage and harness loyalty programs effectively, as well as technologies and an array of detail on rewards and omnichannel experience approaches.

The customer loyalty management market is expected to be worth US$15.5 billion by 2025.

Don’t miss out on the wealth of insight and content provided by CMO A/NZ and sign up to our weekly CMO Digest newsletters and information services here.  

You can also follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page      


Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Canva's mission is to empower people with the ability to design anything they want. To do this, They've had to balance experimentation an...

Digital Davaoena

xx - CMO Australia

Read more

Thanks for your feedback, Rabi. While we introduced the ROO concept using a marketing example, I also believe that it is pertinent to man...

Iggy Pintado

Introducing Return on Outcome (ROO) - Brand science - CMO Australia

Read more

Thanks for your insight, Philip. Return On Outcome (ROO) requires balanced thinking with the focus on outcomes as opposed to returns.

Iggy Pintado

Introducing Return on Outcome (ROO) - Brand science - CMO Australia

Read more

Beautiful article.


15 brands jumping into NFTs

Read more

"Blue" is really gorgeous and perfectly imitates a human customer support operator. Personally, I won't order a chatbot development for m...

Nate Ginsburg

Why the newest member of BT’s contact centre is a chatbot

Read more

Blog Posts

How the pandemic revealed the antidote to marketing’s image problem

What does marketing truly ‘own’ in most organisations? Brand and campaigns, definitely. Customer experience? That remains contested ground.

Murray Howe

Founder, The Markitects

Still pursuing a 360-degree view of the customer?

On the Internet, nobody knows you’re a dog.” It may have been true in 1993 when this caption to a Peter Steiner cartoon appeared in the New Yorker. But after 30 years online, it’s no longer the case.

Agility in 2022

Only the agile will survive and thrive in this environment and that’s why in 2022, agility will need to be a whole-business priority.

Sam McConnell

Melbourne bureau chief, Alpha Digital

Sign in