Assessing the State of U.S. Consumer Loyalty in 2023

Put differently, it isn’t enough for a brand’s loyalty program to provide basic discounts or points. There must be something more—something that makes consumers feel genuinely seen, heard, and valued. And the more interactive the brand gets with its consumers, the better.

This is especially true as far as younger consumers are concerned, which leads to a somewhat more sobering observation. Data from Morning Consult released earlier this year found that Generation Z’s adult shoppers (cited as aged 18-25) take more time when considering their purchases, making it more difficult for brands to win them over and resulting in a lesser degree of loyalty overall.⁴

However, Gen Z consumers are also much more likely to be impressed by the perception that brands are working hard to build a relationship with consumers, especially through the use of social media platforms like TikTok.⁵ So, youthful consumers can be won over; it just takes time and work, rooted in an understanding of the Gen Z psyche.

Significantly, Gen Z consumers had the highest representation among respondents of the Marigold survey at more than 30%.⁶ Perhaps this explains why 70% of respondents reported making frequent purchases from the same company but feeling no particular loyalty to that company.⁷

But even this has a fairly positive spin, as the consumers who lack brand loyalty represent a huge segment of the market. It is up to the brands with the strongest loyalty programs and savviest marketing presence to tap into this segment and expand their base of loyal consumers.

In other words, brand loyalty numbers in the United States are strong as of 2023—but they can always be stronger, and brands that fail to devote sufficient strategic efforts to expanding and rewarding customer loyalty are leaving money on the table.