EQ2 2017: What Loyalty Looks Like

QUARTERLY REPORT

Loyalty. Consumers say they find loyalty programs worth the time and effort, but more than half of all loyalty memberships in the United States go unused. It’s a stat that highlights the reality facing retailers today: there’s a significant difference between a customer who belongs to a loyalty program and a customer who is truly loyal to a brand or retailer.

Loyalty program members may abandon that membership program altogether and never shop with a retailer again, but the lifetime value of a loyal customer—someone who repeatedly makes purchases with the same retailer—grows purchase after purchase.

So, for this EQ, we ignored loyalty memberships and looked at truly loyal customers: those shoppers who make repeat purchases. We explored what they look like, how they behave, and how their journey to repeat-customer status starts.

We studied more than 140 million purchases over the last year and found quite a few compelling insights buried in the data, including:

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how many days, on average, customers take between purchases

how key metrics like average order value and revenue per session change as loyalty increases, and 

how devices use changes as purchases become more frequent

... and many more findings that will change your strategy for building strong relationships with your best customers.