The Loyalty
Report.

2020
USAEXECUTIVE
SUMMARY

State of Loyalty.

LAUNCH EDITIONA Decadeof Loyalty.
In its 10th year of publication, The Loyalty Report is proudly known as the leading
source of insights and guidance into an ever-evolving world of customer engagement
and loyalty—and the launch of this year’s report couldn’t be more timely. In the midstof a global pandemic and economic slowdown, the challenges facing Brands in 2020
have never been more complex. The urgencies for digital transformation, complete withempathy and focus on human needs and experiences, are heightened. The opportunities
for Loyalty Programs to help Brands accelerate recovery are very real and present.
While savings have grown more important in light of recent events, so has the valueof great service, time, and added convenience, along with the feelings of security thatstrong Brands engender. New customer expectations, preferences, and behaviors arenormalizing. Traditional loyalty mechanics like points, discounts, and rewards are tablestakes. To stand out and earn loyalty that sticks, Brands now must focus on true driversof Member Engagement—and that starts with a foundation of Personal Relevance to theMember, extended through the interconnectivity and influence of digital and humanexperiences within your program.
In partnership with Visa, Bond surveyed almost 70,000 consumers on more than 100
attributes that examine over 1,000 Loyalty and Credit Card Programs across 34 global
markets. This decennial edition of The Loyalty Report shares several of the mostimportant lessons learned for Brands charting their path towards the “new normal.”
How will your program stay relevant with the changing State of Loyalty?

How do I access the complete report?
Contact us to learn more about how you can subscribe to
the most in-depth research study on consumer Loyalty
and rewards Programs, and gain access to insights intosome of the 1,000+ Loyalty and Credit Card Programs
operated globally.

#loyaltyreport | 2

The World’s Largest Studyof Loyalty, Engagement, andKnown-Customer Experience.
Sample of more than

In68K

34
Markets

AMERICASEUROPEASIA PACIFIC
MIDDLE EAST

Examining more thanIn

AcrossConsumers

1000+ 15+Programs

17K Americans providedfeedback on 300+Loyalty Programs between
December 3, 2019 andMarch 17, 2020.

Industry Sectors• Airline• Apparel Retail• Automotive• Big Box Retail• Car Rental• CPG• Entertainment• Quick Serve Restaurant & Dining• Gas & Convenience• Grocery• Health & Beauty• Hotel• Informal• Online Retail• Payments• Pharmacy… and more.

Across100+Attributes• Loyalty Mechanics• Program Influence• Behavioral Loyalty• Emotional Loyalty• Earn Mechanics• Rewards & Redemption• Brand Alignment• Human Experiences• Digital Experiences... and more.

#loyaltyreport | 3

FastFacts.
Sector Engagement
Member Engagement scorecomprises satisfaction, advocacy,
emotional connections, and spend.

Member Engagement
Ranked by Sector

The Influence of Loyalty
Loyalty continues to bring positive outcomes for Brands, andthe impact on advocacy, retention, and spend (or “say, stay,spend”) remains strong.

Say

Stay

Spend

I am more likely torecommend Brands
with good Loyalty
Programs.

Programs makeme more likely tocontinue doing
business with Brands.

I modify amountspent to maximize
points.

ActiveMemberships

71472%

78%

64%

EntertainmentGas
HotelDining

New Memberships
Remain Steady butnot all are ActiveGrocerySpecialty Retail
Cruise Line

Anatomy of the “Active 7”

Auto Rental

Average number of active memberships in wallet, by sector:Apparel Retail2020% Changevs. 2019

Payment

1.918%

Specialty Retail

1.3

20%

High-Frequency
Retail0.9

14%Travel

0.8

11%

Dining0.8

6%AirlineDrug StoreTop Credit Card Performers	Bank Branded
Cashback Credit
Bank Branded Points Credit
Co-branded Credit
Private Label Credit#loyaltyreport | 4

FastFacts.

Digital Experiences
Made Personal
Loyalty Programs achieving highlevels of personalization along
the Member Lifecycle experienceconsiderable lifts in key outcomes.

The Experience
Accounts for 3/4of What Drives
12%
Engagement.
Experience

4%%

8%

7612%

12%

Say12%
12%

8%

Earn + Burn

10%

24%

10%

12%		 Recognition + Support

10%

Data Usage + Trust

12%

8%

Communications

12%		 Ease + Enjoyment

8%

Digital10%		 Brand Alignment

4%		 Meets Needs

Personal Relevance

Drivers of increased importance in 2020

25%

Strongly
Agree

47%

HIGHER
Program Engagement

Human Experiences
Made Personal
Only one in four Members
strongly agrees that program
representatives make themfeel special and recognized,
but programs getting thisright experience 47% higherengagement.

7.5× LiftStay

5.4× Lift
Spend

6.4× Lift

Credit Card Programs achieving
high levels of personalization along
the Member Lifecycle experiencea $196 lift in spend on card, per
Member, per month.

$196 Lift
Tailored Offers
Members who receive relevant offersthat become more relevant over timeare 8× more likely to go out of their way
to use them.

8×#loyaltyreport | 5

Providing Relevant, Timely Insights.
2020 Chapter Highlights

01. Key Program Performance Measures and Drivers of Engagement
By examining key attitudinal and behavioral performance measures, for both Loyalty and Credit Card Programs,
our study showcases the importance of Loyalty in strengthening relationships between Brands and theircustomers. We outline why marketers, in addition to building balanced programs that are competitive on value
proposition, must differentiate on Member experience—a crucial factor in driving Member Engagement, being
one of the “active” programs in a Member’s loyalty wallet, and avoiding disruption from competitive programs.

A barometer for marketers
Member satisfaction echoes their outlook on life.
Follow the Member sentiment in your region toevaluate performance on expectations.

#loyaltyreport | 6

COVID-19—Loyalty in a Time of Crisis
In 2020, the COVID-19 pandemic has changed the way we live on a global scale. Our recent series of researchstudies have been integrated to provide-driven insights. Bond is able to point out the impact of this global healthcrisis when it comes to consumer behaviors overall and within customer Loyalty Programs—and we reveal howBrands should continue to operate these programs.

02. Path to Engagement
Bond has leveraged a neural network analytical method to create a Loyalty Path Analysis. New to this study,
this research approach proves that Personal Relevance is a foundational element to establishing successful
Loyalty Programs. We lay out a recommended roadmap for Program operators by showing both the strengthand direction of interconnectivity across a set of Member Engagement drivers.

The path to Member
Engagement

Actionable Program Levers

Key Business Outcomes

Bond’s neural network assessment identifies the strength and direction ofinterconnectivity among the fundamental aspects of each driverof Member Engagement. The Path Analysis prioritizes the most actionable
program levers right through to key business outcomes—revealing that successstarts with Personal Relevance carried through the entire loyalty strategy.

#loyaltyreport | 7

03. Digital Interactions
Bond shares insights and examples to specify how clients/partners can more effectively utilize digitalcommunications and interactions to deliver Personal Relevance to Members. This includes isolating the touchpoints, sector by sector, that hold high importance and value in improving personalization within the MemberLifecycle—which ranges from onboarding and activation all the way through to attrition. Analysis includes
a deep dive into the role of “offers,” with insights into the areas of improvement that will drive strengthened
efficacy of promotional spend, in order to drive engagement with the program and the Brand.

Simplified Sample
Lifecycle

Recommendations

Welcome/Onboarding

Acknowledgment

Special Offers

04. Role of the Rep
Looking ahead to a post-COVID-19 world, one thatis sure to remain increasingly digital, this chapter
shares insights into the importance of the role that
representatives play in Member Engagement. To
fulfill their role in delivering the Loyalty Programpromise: now, more than ever, insights convey that
representatives need to excel on key competencies
that strengthen (make) the Member relationship,
while correcting for those that can destruct (break) it.

Programs achieve a
3.7× lift in satisfaction and
47% higher engagement
among Members who strongly
agree its representatives help
them get the most out of it.

#loyaltyreport | 8

05. Co-brand Congruence
Brand-aligned payment extensions of non-tender
Loyalty Programs drive multiplicative value forMembers and the Brand. Bond’s insights validate
the purposefulness of aligning credit card andprogram loyalty mechanics. Members participating
in both programs need to derive benefit and valuethat solidifies and strengthens the relationship—andthat expands beyond what would be achieved if theMember was only participating in one or the other.

Only 2/5 of Members
strongly agree that Loyalty Programs and theirassociated co-branded credit cards are working
together seamlessly.

3/4 of Members
in a co-branded Credit Card or Loyalty Program
feel strongly that these programs are a key partof their relationships with Brands.

#loyaltyreport | 9

06. Live Experiences
In this chapter, we dissect the cornerstone elements that drive successful Member-exclusive live Brand
experiences so that Program operators can find a path to an attributable return on investment. While thecurrent climate may have put a pause on these interactions, they will shift and adjust in the “new normal” tobecome an integral point of engagement. Bond’s research highlights experiences that drive the most value fromengaging participants before, during, and after the event—all within the context of current market dynamics
and future dynamics of what may be the “new normal.”

The Experience RibbonTM
Impact on Event Satisfaction#loyaltyreport | 10

Top Loyalty Programs.
Airlines
1. JetBlue TrueBlue

2. S outhwest Airlines
Rapid Rewards

3. A
 laska Airlines
Mileage Plan

2. M
 GM M Life Rewards

3. Marriott Bonvoy Rewards

2. H-E-B Points Club Rewards

3. Smith’s Fuel Program

2. CVS ExtraCare

3. W algreens BalanceRewards

2. Sephora Beauty Insider

3. Sally Beauty Rewards

Hotel
1. Hilton Honors

Retail: Grocery
1. Food Lion MVP Program

Retail: Drug Store
1. Rite Aid Wellness+

Retail: Health & Beauty
1. M y Bath & Body Works
Rewards#loyaltyreport | 11

Top Loyalty Programs.
Retail: Department
1. JCPenney Rewards

2. Kohl’s Yes2You Rewards

3. The Nordy Club

2. myAbercrombie

3. T he Children’s PlaceMy Place Rewards

2. Bed, Bath & Beyond Beyond+

3. Harry’s Shave Plan

Retail: Apparel
1. Nike+

Retail: Specialty
1. Amazon Prime

Dining & Quick Service Restaurant
1. Chick-Fil-A One

2. D omino’s Piece of thePie Rewards

3. Dunkin’ Donuts DD Perks

2. Wawa Rewards

3. MAPCO MY Reward$Gas & Convenience
1. C umberland Farms Smart
Pay Mobile App#loyaltyreport | 12

Introducing.
The State of Loyalty
Data Lake
Dip into loyalty highlights that span 10 years, 100,000s of consumers,
34 countries, representing 100s of Marketers, and covering 1000s ofprograms and apps; history’s longest-standing, deepest, most robust dataon consumer loyalty around the world. Wade even further into programand sector-level perspectives. Plus, examine behavioral and attitudinalbenchmarks—all featuring operational and operator data and findings.
We’ve filtered the past to predict the future.

stateofloyalty.com

https:// stateofloyalty.com

Dive In HereGet more fromThe Loyalty Report.
Contact us for more detailed report findings, to learn about purchasing
the complete report, or to schedule an engagement workshop.
Phone: 1.844.277.2663
Email: info@bondbl.com

About Bond.
We solve complex customer challenges.
Bond solves complex customer challenges with a unique blend of humancentered design, data science, and loyalty mechanics that transforms how
brands win, serve, and keep audiences. Recognized by Forrester and Gartner
as a leader, and working globally with iconic brands, Bond is sought after fortransformative digital strategies, executions that are aligned to real humanneeds, and an impressive acceleration of results. Bond designs, builds, andoperates experiences that create measurable, authentic, and long-lasting
relationships through a combination of solutions that includes customer
experience design, loyalty consulting and management, CRM and digitalmarketing, research and analytics, channel and employee engagement, andprogram and platform engineering.

Contact us at 1.844.277.2663

bondbrandloyalty.com

info@bondbl.com@createabond