Loyalty Programs: Are they really worth it for the consumer?

Loyalty programs are initiatives created by companies to reward customers who make frequent purchases or use services regularly. These “rewards” can range from discounts on future purchases, accumulation of points to exchange for products or services, to access to exclusive promotions.

Brazilian retail, which accumulated a growth of 5.6% in the year to May, according to data from the IBGE Monthly Trade Survey, has been recovering consistently in 2024.Sectors such as hyper and supermarket, responsible for 54.7% of sales volume, showed an increase of 2.6% in the last two months. 

In this sense, loyalty programs can be a strategy to encourage the frequency of purchases and strengthen consumer loyalty. These programs help direct customer choices to establishments where they already accumulate benefits, contributing to maintain the growth cycle of the retail sector.

According to a survey by the Brazilian Association of Loyalty Market Companies, more than 80% of consumers prioritize companies that offer loyalty programs, considering these initiatives a positive point in the relationship with the brand. The preference for companies that provide benefits has grown, from 72% in 2022 to 85.2% in 2023.

“Loyalty programs are a two-way street. While companies can increase customer retention and strengthen brand loyalty, consumers have the opportunity to save and access exclusive” benefits, comments Mauricio Staffoff, President of the Federation of Sao Paulo Chamber of Shopkeepers. 

Benefits for consumers

The benefits offered by loyalty programs are varied and often aligned with the needs and preferences of consumers. 

• Discounts on Future Purchases: Many programs offer discounts on future purchases, providing a direct savings to the consumer. This can be especially advantageous on products that the customer already intended to purchase.
  
• Accumulation of Points: Another common advantage is the accumulation of points that can be exchanged for products or services. Each purchase made by the consumer accumulates a certain amount of points, which can later be used to obtain items for free or at a discount.
  
• Free Shipping: In programs linked to e-commerce, free shipping is one of the most appreciated rewards by consumers. The freight economy can be an important differential in the purchase decision.
  
• Exclusive Promotions: Many loyalty programs offer early access to promotions or product launches, allowing consumers to take advantage of offers before the general public.
  
• Cashback: In some programs, part of the amount spent by the consumer returns as credit to be used in future purchases, a direct way to save.

“Consumers who understand and use loyalty programs well can maximize their purchases, turning consumption into opportunities for gain. This is especially relevant in times of tight economy, where every advantage counts,”.