Why Loyalty Deserves a Bigger Seat at the Brand Table

A ground breaking new report from global integrated creative agency VCCP, in partnership with the Data and Marketing Association UK (DMA), has revealed that loyalty and CRM programmes - when integrated with broader brand communications - can deliver substantial business value across both short- and long-term horizons.

Titled 'The Long & Short of Loyalty', the report analyses over 1,700 campaigns from the DMA Effectiveness Databank, identifying a distinct group of high-performing brands - dubbed those with the Loyalty X Factor. These are the brands that have embedded loyalty at the heart of their strategy, creating a multiplier effect across acquisition, retention, brand equity and revenue growth.

Compared to average campaigns, brands with integrated loyalty strategies are:

• 8x more likely to drive long-term customer retention
• 80% more likely to acquire new customers
• 50% more likely to deliver revenue uplift
• 3.5x more likely to increase average order value

Despite this, many brands still treat loyalty as a siloed function - often managed separately from brand communications. This disconnect, the study finds, can undermine loyalty effectiveness and damage the customer experience.

“The big message here is that loyalty isn’t just about points and promotions - it’s about brand integration,” said Ellie Gauci, head of strategy, loyalty and CRM at VCCP. “Brands that build loyalty into the brand ecosystem - leveraging loyalty data, joining up with every customer touchpoint, and thinking of it as a contributor to compound creativity - consistently outperform. It’s time we reframe loyalty as a long-term distinctive brand asset, not a short-term tactical tool.”

Produced in collaboration with customer experience specialists TAP CXM, Bernadette and behavioural science experts Cowry Consulting, the report combines quantitative analysis with behavioural insight to reveal why loyalty works in this way. It introduces a new three-part model for brand-building loyalty:

• Superior Proposition - aligning loyalty with brand purpose and identity
• Superior Intelligence - using behavioural science to build emotional credit
• Superior Experience - delivering seamless, personalised brand moments across channels

Ian Gibbs, data and insight director at the DMA, said, “Our research shows that brands are missing a trick if they only think of their loyalty data as a tool for retention. It can help grow their customer base too through its usage in short-term acquisition activity, but perhaps more importantly through its powerful brand and advocacy effects. In fact there has been a huge ‘short to long term’ pivot for loyalty-centric campaigns since 2022, with the number of brand effects recorded tripling in size.”

“For LEGO, loyalty is about building relationships that last - through emotional connection and shared values,” said Ed Grimseys, D2C director at VCCP client company LEGO and panellist at the report launch. “We’ve seen that when loyalty is truly integrated with brand, it becomes a driver of creativity, advocacy, and long-term growth.”

The report is the latest publication in VCCP’s Challenger Series and was officially launched at an event featuring speakers from VCCP, DMA, LEGO, TAP CXM and Cowry Consulting.

Read the full report The Long and Short of Loyalty on VCCP’s website