Chapter 2: Loyalty is the new brand differentiator
Brands and retailers are finding ways to drive customer lifetime value in an increasingly complex and competitive landscape.
Time to read: 5.5 minutes
![Shopper earning reward points for a purchase as part of a brand's loyalty program](http://www.salesforce.com/content/dam/web/en_us/www/images/industries/articles/connected-shoppers/RCG_ConnectedShopper_Image_2_768x432.png)
Chapter 2: Loyalty is the new brand differentiator
Shoppers say incentives like free shipping (75%), simple and/or free returns (60%), and loyalty or rewards programs (56%) all increase their likelihood to buy. Taking retailers out of the equation, when it comes to the top traits of shoppers’ favourite brands, loyalty programs top the list. Shoppers also seek tailored engagements that are genuine and meet them on their terms, such as exclusive shopping experiences, early access to products, and sustainability.
Top five traits of shoppers’ favourite brands*
![Gift icon](http://www.salesforce.com/content/dam/web/en_us/www/images/industries/articles/connected-shoppers/RCG_ConnectedShopper_icon_loyalty-program-v2.png)
Offers a loyalty program
![Shopping cart icon](http://www.salesforce.com/content/dam/web/en_us/www/images/industries/articles/connected-shoppers/RCG_ConnectedShopper_icon_exclusive-shopping-experience-v2.png)
Offers exclusive shopping experiences and/or promotions
![Personalization icon](http://www.salesforce.com/content/dam/web/en_us/www/images/industries/articles/connected-shoppers/RCG_ConnectedShopper_icon_unique-needs-v2.png)
Caters to unique needs
![Email icon](http://www.salesforce.com/content/dam/web/en_us/www/images/industries/articles/connected-shoppers/RCG_ConnectedShopper_icon_Engages-in-the-places-v2.png)
Engages in the places they prefer, like over email, social media, shopping app, etc.
![Star with Hand icon](http://www.salesforce.com/content/dam/web/en_us/www/images/industries/articles/connected-shoppers/RCG_ConnectedShopper_icon_Offers-early-access-v2.png)
Offers early access to new products and has sustainable business practices [tied]
*Multiple responses allowed. “Brands” is defined as those that embrace D2C selling.
![Number 5 reason shoppers value the physical store](http://www.salesforce.com/content/dam/web/en_us/www/images/industries/articles/connected-shoppers/RCG_ConnectedShopper_icon_spotlight-v2.png)
Spotlight on loyalty programs
In 2021, shoppers belonged to an average of 4.3 loyalty programs. While points-based programs are the most popular type today, data suggests that younger generations crave experiential programs that instill a genuine and authentic connection.
Millennials and Gen Zers value exclusive access to limited products and experiences, nearly two times more than Silents/Baby Boomers when it comes to loyalty programs. They are also more likely to join a fee-based loyalty program. Nearly one-third of Gen Zers report belonging to one, such as Amazon Prime or DoorDash’s DashPass.
Shoppers overall belong to the following types of loyalty programs:
![Chart with most popular loyalty program types, with points-based as the most popular (77%)](http://www.salesforce.com/content/dam/web/en_us/www/images/industries/articles/connected-shoppers/RCG_ConnectedShopper_5_%20types-of-loyalty-programs.png)
Shoppers are interested in taking various actions in exchange for perks
Beyond earning special discounts and free shipping, many shoppers are interested in rewards for engaging and promoting the brand or retailer. This includes downloading an app (57%) or writing an online review (47%). One in three shoppers are willing to go so far as to share the brand on social media in exchange for rewards.
![Chart that shows actions shoppers are willing to take to earn rewards](http://www.salesforce.com/content/dam/web/en_us/www/images/industries/articles/connected-shoppers/RCG_ConnectedShopper_6_earn-rewards.png)
Shoppers are willing to exchange personal information for tailored rewards
Shoppers are also interested in providing certain personal information in exchange for relevant experiences and benefits. Sharing their birthday is the most common information that they are willing to share, but shoppers are also interested in providing their sizes and style preferences.
![Chart that shows information shoppers are willing to provide in exchange for rewards](http://www.salesforce.com/content/dam/web/en_us/www/images/industries/articles/connected-shoppers/RCG_ConnectedShopper_7_info-in-exchange-for-rewards.png)
Data suggests that shoppers’ expectations around loyalty programs are changing and that brands and retailers have the opportunity to evolve loyalty programs in terms of types of rewards as well as actions taken to earn them.
Chapter 3: Brands and retailers are evolving their customer experience strategies
Discover where retail executives are investing in order to meet changing shopper expectations.
![](http://www.salesforce.com/content/dam/web/en_us/www/images/industries/articles/connected-shoppers/RCG_ConnectedShopper_Image_3_768x432.png)
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