What's Happening?
A 2026 survey conducted by Arrivia, a travel technology company, indicates a significant gap between U.S. consumers' expectations of brand loyalty and their satisfaction with existing loyalty programs. The survey, which polled 2,007 U.S. adults and 250
loyalty and benefits leaders across six sectors, found that 90% of consumers expect to remain loyal to their preferred brands. However, only 32% reported that these brands' rewards programs consistently exceed their expectations. This '90/32 Loyalty Gap' suggests that while consumers intend to be loyal, current loyalty programs often fall short of delivering a consistently satisfying experience. The study also highlighted that 86% of business leaders anticipate an increase in loyalty budgets over the next two years, with planned upgrades focusing on better rewards and redemption processes, as well as loyalty software and AI tools. The health and wellness sector, in particular, shows a higher priority for AI investment, with 63% of organizations planning to increase spending in this area compared to 49% of businesses overall.
Why It's Important?
This discrepancy between consumer expectation and program satisfaction has significant implications for U.S. businesses across various sectors, particularly those relying on recurring memberships like gyms. The survey underscores that mere intent to be loyal does not translate into actual retention or engagement. For businesses, this means that simply having a loyalty program is insufficient; the program must actively deliver value and a positive experience to prevent customer churn. The finding that about one in three gym members still leave each year, despite high initial loyalty expectations, highlights the financial impact of ineffective programs. Businesses stand to lose revenue and market share if they fail to bridge this gap. The planned increase in loyalty budgets and investment in AI tools suggests a recognition among business leaders of the need for more sophisticated and data-driven approaches to customer retention. Companies that successfully leverage these insights to create more engaging and rewarding experiences will likely gain a competitive advantage, while those that do not risk falling behind in an increasingly competitive market where consumer spending is concentrating among fewer preferred brands.
What's Next?
In response to these findings, U.S. businesses are expected to re-evaluate and enhance their loyalty programs, focusing on data-backed and performance-based strategies. The survey suggests that future loyalty investments will prioritize rewards and redemption, along with the integration of loyalty software and AI tools. For sectors like health and wellness, this could mean a rapid adoption of AI to personalize rewards and improve member engagement. Businesses will likely shift towards rewarding verified actions, such as gym visits or referrals, rather than just sign-ups, and making the redemption process faster and more flexible. The emphasis will be on creating a seamless and valuable experience that encourages consistent engagement. This will involve a mix of small, everyday rewards and larger milestone rewards, tailored to individual member preferences. Companies will also need to focus on reducing friction in the rewards process, as slow earning and expiring points were identified as key frustrations for consumers. The goal is to transform passive loyalty intent into active, measurable engagement that drives long-term customer relationships and revenue growth.
Beyond the Headlines
The Arrivia survey's findings point to a broader shift in consumer behavior and expectations regarding brand relationships. The emphasis on 'verified actions' and 'performance-based' rewards suggests a move away from generic, one-size-fits-all loyalty programs towards more personalized and impactful engagement strategies. This evolution has ethical implications, as businesses will need to ensure that the collection and use of customer data for personalization are transparent and respect privacy. Legally, this could lead to increased scrutiny of data handling practices within loyalty programs. Culturally, consumers are becoming more discerning, expecting tangible value and a seamless experience in exchange for their loyalty. Brands that can foster genuine human connection, even through technology, are likely to see greater success. The report from Bond, which found that brands using AI to support human connection saw significantly higher engagement and advocacy, underscores this point. This indicates a long-term trend where successful loyalty programs will not just offer discounts but will create meaningful, personalized interactions that resonate with customers on a deeper level, ultimately shaping how businesses build and maintain customer relationships in the digital age.
