EPAM’s Consumer Loyalty Research: Global Insights analyzes responses from 10,000 consumers across eight global regions to uncover what drives loyalty today.
Only 20% of consumers actively use more than three loyalty programs, proving most programs struggle to stay relevant. This report identifies the features, channels, and strategies that keep customers engaged.
“Strong customer loyalty is a recognized competitive advantage. Research shows that brands invest on average one third of their total marketing budgets in loyalty programs. To stay ahead, leading brands are continually focused on the trends they need to consider. They must adapt to consumer expectations and competitor moves,” said Andrew Doyle, Managing Principal & Global Head of Loyalty, Promotions & Growth.
“Trends like hyper-personalization, real-time engagement and context-driven rewards are much discussed. But which of these do consumers truly desire and which can be adopted at scale? And how does this vary by market? We conducted a research study to answer these questions, with 10,000 consumers globally and market specific results.
“In this eBook, we present the global results. Designed for busy professionals, the content is clear, concise and accessible. However, if you’d like deeper insights tailored to a specific segment relevant to your business, don’t hesitate to reach out — we’d be happy to help.
This research was part of the production of the Global Customer Loyalty Report, where EPAM partnered with Antavo. The report also contains input of 2,600 loyalty professionals and analysis of 230 million loyalty member interactions. I strongly suggest you read the full report. The evolution of loyalty underscores the need for brands to innovate and adapt their
loyalty strategies. I hope this eBook empowers you to make informed, data-driven decisions as you build or revamp your loyalty strategy.”
The EPAM report said the primary reason most people engage with in loyalty programs is to earn rewards, discounts, or cash back on future purchases. Personalized offers and rewards come in second, while the added convenience of free shipping or returns is equally valued.
‘‘Rewards and discounts offer immediate value. However, combining monetary benefits with meaningful experiences creates a stronger connection. Personalized offers, exclusive events and VIP treatment tap into the emotional side of consumer behavior, making customers feel valued and connected to the brand. This emotional bond transforms a transactional relationship into lasting loyalty. This mix of rewards and engagement fosters exclusivity and belonging, drives repeat purchases and builds long-term brand advocates, even amidst competitive monetary incentives,” said Emma Kilczynski, Principal Business Consultant, EPAM.
The EPAM report said customization and gaming are the most valuable features in loyalty programs. According to the survey, most users either use or would use the customization feature if it were available; similarly, people either use or would use the gaming feature if it were available.
“Loyalty programs must offer a personalized experience that cater to customers’ unique expectations and engagement triggers. Data plays a crucial role in creating these personalized encounters. With restrictions on third-party data, the importance of first-party data becomes even more significant for brands. Harnessing first-party data can lead to a better understanding of customers and successful personalization efforts, thus creating stronger loyalty programs,” said Ward de Kruiff, Global Head of Web3 and Metaverse, EPAM.
EPAM said loyalty programs are evolving, shifting from simple transactional rewards to creating deeper emotional connections with consumers.
“While earning rewards, discounts or cash back remains a key motivator, features like personalization, gamification and perks like free shipping are becoming equally important. Consumers are most engaged when loyalty programs offer partnerships and unique, immersive experiences, making innovation and customization essential,” said the report.
“AI is transforming the loyalty program landscape, bringing hyper-personalization and real-time engagement into the mix. Even if not all consumers fully understand AI’s role, its ability to deliver tailored offers and experiences is quickly becoming a must-have for brands looking to build meaningful connections with their audience.
“As technology continues to advance, AI will play a central role in shaping the future of loyalty strategies, helping brands create programs that resonate with consumers on a deeper level. We are not certain what the future holds for consumer behavior, especially as more brands compete for attention and loyalty.”
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