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Loyalty Programs in North America: 2022 Statistics and Trends

Flex Blog Team
February 13, 2023
2:02 am

Loyalty programs have become an important part of business strategies for companies of all sizes. These programs aim to retain customers and build brand loyalty by offering rewards and incentives for repeat purchases. In North America, loyalty programs have been popular for many years, and the trend has only continued to grow in 2022. In this blog post, we will take a look at the latest loyalty statistics in North America and discuss the most effective types of loyalty programs used by small businesses.

The Value of loyalty Programs

Loyalty programs offer many benefits to both businesses and customers. For businesses, loyalty programs help to increase customer retention, build brand loyalty, and drive repeat purchases. On the customer side, loyalty programs offer rewards, incentives, and special promotions, making it more likely that customers will continue to do business with a company. According to a recent survey, the value of loyalty programs in North America is estimated to be worth over $50 billion. This number has been steadily increasing over the past few years and is expected to continue to grow in the coming years.

Loyalty Statistics in North America

In 2022, there were an estimated 3.3 billion loyalty program memberships in North America, up from 2.9 billion in 2021. The majority of these memberships were held by customers in the United States, with Canada following closely behind. The most popular types of loyalty programs in North America are retail and grocery store programs, followed by travel and hotel programs. These programs are popular because they offer a wide range of rewards and incentives, including discounts, cash back, and free merchandise. In terms of customer participation, the average North American customer is a member of 7.5 loyalty programs. However, it is estimated that only about 25% of these memberships are actively used. This means that there is still room for growth in the loyalty program market, as businesses look for ways to increase customer engagement and participation.

Effective Loyalty Programs for Small Businesses

Small businesses can also benefit from offering loyalty programs to their customers. However, it is important for small businesses to choose the right type of program to ensure that it is effective and successful. Here are some of the most effective loyalty programs used by small businesses:

Points-based programs: These programs reward customers for making purchases by giving them points that can be redeemed for rewards. This type of program is easy to implement and track, making it a popular choice for small businesses.

Tiered programs: Tiered programs offer different levels of rewards based on the amount of purchases made by a customer. This type of program incentivizes customers to make more purchases to reach higher tiers and receive better rewards.

Referral programs: Referral programs reward customers for referring new customers to a business. This type of program can be a cost-effective way for small businesses to acquire new customers and build brand awareness.

Punch card programs: Punch card programs reward customers for making a certain number of purchases. This type of program is simple and easy to understand, making it a popular choice for small businesses.

Personalized programs: Personalized programs offer rewards and incentives that are tailored to the specific interests and preferences of individual customers. This type of program can be more effective in building long-term brand loyalty, as it shows that a business values and appreciates its customers.

Conclusion

Loyalty programs continue to be an important part of business strategies in North America, with the value of these programs estimated to be worth over $50 billion in 2022. While the majority of loyalty program memberships are held by customers in the United States, the loyalty industry in Canada makes up an increasingly significant share of the total market.

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Flex Rewards is a powerful customer loyalty system made especially for brick-and-mortar businesses. What makes us unique is the ease of which our system can be operated. Customers don’t need to download another app, and issuing stamps is as simple as showing a QR code. You can launch your own branded digital loyalty system within minutes. This makes Flex Rewards a unique solution for busy owners who need an effective loyalty program to bring in more business. Flex Rewards also comes packed with powerful features. We give every customer their own referral link so you can grow your business organically via word-of-mouth. You can also configure Welcome Rewards, Push Notifications, Promotions and Birthday Rewards to get the most out of your loyalty customers. Flex Rewards is the world’s most advanced digital loyalty platform made especially for small business owners.

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Loyalty Programs in North America: 2022 Statistics and Trends

The Value of loyalty Programs

Loyalty Statistics in North America