[May 01, 2025]

Your Loyalty Program Is Your Insurance Policy: Redeeming Loyalty Program Members Are 4X More Likely to Repeat Purchase When Consumer Confidence Slumps

Loyalty program members are nearly three times more loyal when consumer confidence drops. New research from leading loyalty platform LoyaltyLion shows that engaged members are an ecommerce brand's most valuable asset during uncertain times.

When confidence dips, revenue from redeeming loyalty program members holds much steadier. In a previous period of low consumer confidence, brands saw just a 3% drop in revenue from redeeming members. Compare that with an 8% drop from non-redeeming members and 6% from non-members, and it's clear where the resilience lies.

LoyaltyLion analysed the behaviour of customers across 3,000 brands and over 205 million orders. The data found that engaged and especially redeeming loyalty program members stay a more reliable source of revenue even when spending habits change. Members who actively use their rewards were nearly three times more sable than those who never redeem.

Repeat purchase rates back this up too. When consumer confidence fell historically, the share of redeeming members making repeat purchases dropped just 3 percentage points, from 88% to 85%. Non-redeeming members saw a much sharper fall, from 58% to 50%. Non-members slipped from 28% to 22%.

Charlie Casey, CEO of LoyaltyLion says: "When times get tougher, loyalty members are not just more likely to return, they are far more likely to spend again and again. For brands navigating tariffs and economic uncertainty, growing loyalty membership and driving active engagement should be a clear priority. It is not just about sign-ups, but about motivating members to unlock and redeem rewards. That's the key to retention - and to growing your business even in a difficult market."

Keeping the path to a first reward achievable is important, helping new members feel the value quickly. Communications should also be smart and personal. Email, SMS, and push notifications nudging customers who are close to unlocking a reward can keep them engaged and encourage repeat purchases.

Cost-effective redemption options can also help. Experiential rewards like exclusive content or early access to new product launches build emotional ties without heavy financial outlay.

Growing your loyal and active membership now will not only steady repeat revenue, it will also help create a stronger perceived value for customers, even if prices need to rise.

To learn more about LoyaltyLion, please visit https://loyaltylion.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20250501427280/en/

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