Impact of Loyalty Programs on Generational Spending and Participation

Customer expectations, payment behaviors and perceptions of trust are changing throughout the commerce ecosystem. Retailers are turning to loyalty programs to draw in new buyers and expand or lock in consumer spending. Adoption splits along familiar generational lines, while different incentives produce surprising results—spending impact of loyalty programs on essential categories was significantly higher among Gen Z even though older generations were more likely to participate in the programs. 

The findings point to key strategies retailers can use to boost customer retention and expand their bottom line, no matter which category they operate in. They help uncover areas for innovation and expansion. This report paints a nuanced picture of the current buyer landscape and upends several preconceived ideas about what drives different outcomes for a variety of consumer segments.