The No. 1 Thing Holding Back Loyalty Programs

Some brands hold their loyalty programs in high regard, seeing them as a key to their success. Others are more skeptical, questioning whether their programs actually foster loyalty or just needlessly give away margin.

A new survey of 310 loyalty and marketing professionals by Forrester Research, commissioned by Zeta Global, confirms this skepticism, finding that 30% of brands rate their loyalty programs as only somewhat effective, at best. It also reveals where much of that skepticism likely stems: the collection and use of loyalty data—or rather the lack thereof.

According to The Underutilized Superpower Hidden in Loyalty Data report, 27% of brands don’t use their loyalty programs to collect first-party data and a whopping 38% don’t use it to collect zero-party data. That’s a huge missed opportunity for brands to get to know their best customers better, and then use that knowledge to serve those high-value customers better.

That begs the question: Why aren’t 100% of brands collecting zero- and first-party data via their loyalty programs? What’s holding them back?

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