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 regularly use services. These "rewards" can range from discounts on future purchases, point accumulation for exchanging products or services, to access to exclusive promotions.

Brazilian retail, which accumulated a growth of 5.6% in the year up to May, according to data from the IBGE Monthly Commerce Survey, has been recovering consistently in 2024. Sectors such as hyper and supermarkets, 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 purchase frequency and strengthen consumer loyalty. These programs help steer customer choices towards establishments where they already accumulate benefits, contributing to maintaining the growth cycle of the retail sector.

According to a survey by the Brazilian Association of Loyalty Market Companies, over 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 grew, rising 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 the president of the Federation of the Chamber of Store Managers of São Paulo, Mauricio Stainoff. 

Benefits for consumers

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

• Discounts on Future Purchases: Many programs offer discounts on future purchases, providing direct savings for the consumer. This can be especially advantageous for products the customer already intended to acquire.
  
• Point Accumulation: 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. Savings on shipping can be an important differentiator 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 is returned as credit to be used on 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," highlights Stainoff.