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As the ability to track customers with third-party cookies disappears, brands are turning to loyalty programs to gather valuable data. These programs offer incentives like discounts and rewards in exchange for customer information, including purchase history and preferences that can be used to personalize the shopping experience. Consumers are receptive to sharing information when it means getting something back, with discounts and points systems being the most popular rewards. However, brands need to tailor their programs to resonate with different generations. While discounts are universally popular, Gen Z prioritizes free shipping. Gamification is also a rising trend, with e.l.f. Cosmetics and Temu's engaging features attracting users across generations. By offering value and keeping programs fresh, brands can create loyalty programs that benefit both themselves and data-conscious customers.
Read More: Game On! Shopping Gets Gamified with Temu, Ulta Levels Up Rewards with Gamified Loyalty Program, US Online Retail Spending Up 7%, Driven By Demand for Cheaper Products
Source: EMarketer
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