Loyalty programs are having less of an effect on consumer behavior, survey

They say loyalty is a virtue—a must-have for businesses to thrive.

But new survey data from Upside shows a disconnect between loyalty programs and consumer behavior for grocery stores, restaurants, and convenience retailers.

• Up to 51% of respondents said they don’t factor in a loyalty program when picking where to shop.
• At least a third (33%) said they haven’t purchased more frequently since signing onto a loyalty program.
• And 58–63% of consumers said a store not having such a program wouldn’t affect their shopping habits.

Upside speculates that these results indicate that the average shopper has increased their loyalty memberships since 2015, that those programs aren’t distinct from one another, and they’re not leaving an impression on shoppers.

• However, almost 40% of respondents said they would stop shopping at a store if it canceled its loyalty program.

“Consumers are actively seeking value, and retailers are wise to use tools like loyalty programs that don’t cannibalize existing profits to address that need,” Upside co-founder and CEO Alex Kinner said in a statement. “These survey findings indicate that today’s loyalty offerings have become table stakes for customers, and retailers have an opportunity to do things differently to get more out of their existing investment.”