How Retailers Are Innovating Their Loyalty Programs

Archived Published: 17 June 2014 ID: G00264355


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A Gartner consumer survey conducted in 10 countries shows that 62% of respondents are members of one of more retail loyalty programs. Despite the high percentage of memberships, more than one-third of participants across retail sectors report never using the programs in which they are enrolled.

Table of Contents

  • Analysis
    • Transaction-Based Programs Often Disguise True Loyalty
    • True Loyalists Bring Others With Them
  • Impacts and Recommendations
    • The commoditization of transactional loyalty programs is discouraging customer engagement, forcing retail marketers to get more creative in how they sell the benefits of loyalty
    • Many retail marketers are enhancing their loyalty programs with advocacy — to reward loyalists that not only buy more, but bring others with them
    • Of the customers who reported receiving personalized offers, 82% said that continued, relevant offers from a retailer would increase their loyalty to that retailer over time
  • Gartner Recommended Reading
© 2014 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartners research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

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