GALE Research Reveals Community as Future of Loyalty Programs

​GALE has released its first ever loyalty programs report, 'From Transaction to Connection: The Future of Loyalty Programs.' It includes the results of a survey of 1,000 US consumers conducted by the agency, examining consumer relationships with and behaviours within loyalty programs.

For brands, investing in a loyalty program delivers benefits across multiple fronts, including improving consumer retention, increasing lifetime value, and creating more opportunities for hyper-personalised marketing that captures attention. While transactional benefits like discounts and free shipping remain important, the report shows that nearly 70% of consumers are more likely to join a loyalty program with an active community, and 71% consider engaging with fellow members to be important. For brands to build a successful loyalty program today, deeper emotional connections and community engagement must serve as its core drivers.

“People might join loyalty programs for the points and perks, but if that’s all you’re offering, you’re leaving a lot on the table. The real magic happens when a program builds community, sparks real connections, and gives members a say in shaping the experience. That’s what actually drives people to join, stick around, and stay engaged,” said Jason McCann, managing director, creative at GALE. “The survey also showed a real affinity among gen z, millennials, and men regarding their views on brand loyalty programs, especially in a desire for community.”

Some core takeaways included:

• Community: Those who participate in programs across 10+ categories value community-focused programs and exclusive features. Nearly 70% of respondents said they’re more likely to join a loyalty program that includes an active community. This effect is particularly strong among men, with 41% reporting they are 'much more likely' to join a program with an active community (compared to 22% of women), and the same percentage indicating that the opportunity to engage with others is 'extremely' important (compared to 28% of women).
  
• Engagement: 71% consider engaging with others in a loyalty program to be extremely or somewhat important, particularly among men (80%), millennials (81%), and gen z (75%). Men and younger consumers reported more regular engagement with their favourite loyalty program compared to women and older consumers. Specifically, men were nearly twice as likely to say they engage daily with a loyalty program compared to women.
  
• Relationships: One-third of all respondents said they would 'definitely' become long-term consumers because of the relationships formed within a loyalty program, a number that rises to 47% among men (compared to 26% of women). Among gen z and millennials, nearly half said a strong connection with fellow members would solidify their long-term loyalty to a brand. About a third of gen z, Millennials, and men stopped interacting with a loyalty program because it felt impersonal.
  

Nearly 30% of respondents said they have 'definitely' felt a stronger connection to a brand because of the social aspects of its loyalty program. This research reveals that, if brands want to stay connected to consumers, their loyalty programs must evolve from transactional engines into opportunities for connections between consumers and with the brand itself.

For more information or to access the full report, see here.