To Infinity and Beyond: The Long-Term Benefits of Loyalty Campaigns 

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02.05.2022 research

Why do you need to know about the long-term benefits of loyalty campaigns? Well, in the highly competitive retail world, with a variety of choices and selections including low switching barriers, it’s so fundamentally easy for consumers to change firms in a snap. This poses a threat to retailers-consumers relationships because consumers are less likely to fully commit to a single brand or firm. Lucky for you, loyalty campaigns are here to save the day!

Loyalty campaigns, short- or long-term, are a great way to engage shoppers to your brand and keep them excited. They help retailers increase brand awareness, boost return on investment, drive up in-store traffic, and most importantly, make every trip to the grocery store a memorable shopping experience. 

But little did you know, the benefits from loyalty campaigns stretch way beyond its short-term initiative. So how do loyalty campaigns play out in the long run?


Loyal consumers are here to stay


Bonding with consumers is the centerpiece of the loyalty world. Through loyalty campaigns, retailers are able to build long-lasting relationships with the consumers by rewarding them for their engagement, purchases, and loyalty to your brand. Hence, the act of collecting and earning meaningful rewards resulted in consumers developing a more positive experience towards the store, leading them to have even higher patronage.

In fact, 84% of customers said they are more likely to stick with a retailer that offers a loyalty program in the long run, creating a long-term consumer “lock-in” effect, according to research done by Miller (2021). More specifically, after participating in a loyalty program, customers become more and more vested in the retailer. This will ultimately lead to shoppers having more at stake if they were to leave the brand and go for a different shop. 


    1. Customers feel so immersed in the joy of collecting and receiving rewards to the extent that they are less likely to consider that they’ll enjoy the same extended experience with competitors, which increases the likelihood that shoppers will buy products exclusively from that retailer. All in all, there’s one thing to be sure, launching loyalty campaigns will enable customers to stay shopping at your store for a good while.


Well, if shoppers are staying longer, are they spending more? Luckily, the answer is yes! But other than that, what other long-term benefits of loyalty campaigns can be expected? 


Sales & revenue with long-lasting growth


There are multiple ways in which retailers can lift sales and grow, but nothing compares to the power of loyalty campaigns! The magic works both ways: Customer’s curiosity and excitement during the campaign usually drive more traffic into your stores for weeks, converting into massive sales boost. But that’s nowhere near the end of the rainbow. Over time, shoppers become more and more emotionally attached to your brand, which helps to push sales and revenues for your brand up & beyond in the long run. You don’t need to take our words for it, take a look at the numbers.

After the completion of a loyalty campaign, its short-term promotion effect has translated into a long-term kick! Shoppers are reported to have a positive increase in annual purchasing both in frequency and amount, according to Lewis (2014)


    1. To put these in perspective, ever since the activation of loyalty campaigns, the average annual purchase intensity for shoppers nearly doubled and to some extent, even tripled over the span of 2 years. Thus, the average transaction size for moderate shoppers increased from 27% to 200%. Can you believe it? That is 3 times the amount of purchases from an average customer in firms without loyalty campaign initiatives!


In addition, according to research done by the Academy of Marketing Science (2019), the introduction of a loyalty program has enabled retailers to experience sales uplift ranging from 29% up to 100% for several months after the campaign. Well, that’s for the short term, but how about a long-term increase? That’s right, the line graph still goes up! Three years afterward, retail firms have reported a steady increase of 11% in total sales and a 6% lift in gross profits compared to retailers that did not implement loyalty campaigns. 



Wrapping up the long-term benefits of loyalty campaigns


All in all, there’s so much more to loyalty campaigns than just their short-term benefits. Loyalty programs are the way to bring your brand closer to shoppers, keeping family and kids excited every time they visit your stores. Not only the rewards, it’s also the unique shopping experience that consumers will get on their grocery trip. Through the power of loyalty campaigns, let’s make every trip to your store a memorable experience! 

Read now: Why you need loyalty campaigns in your marketing strategy

Looking for ways to grow sustainably and build long-lasting relationships with your shoppers? Start implementing loyalty campaigns in your supermarkets today.


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