Loyalty Program Benchmark 2023 by SiaXperience

SiaXperience has launched its first Loyalty Benchmark for the year 2023. This initiative is designed to provide valuable insights into the competitive landscape of loyalty programs in the Netherlands and provide an in-depth assessment of the increasing importance of customer retention and loyalty in the dynamic, uncertain and highly competitive market environments.  

SiaXperience conducted a thorough evaluation of loyalty programs offered by 25 leading companies in the Dutch market. With careful consideration of several criteria, including B2C loyalty models, market leadership, and the availability of online channels, SiaXperience selected 25 brands representing nine different sectors. These sectors include E-commerce Retail Stores, Supermarkets, Fashion Apparel, Diversity Stores, Travel & Tourism, Banking, Living & DIY, Food & Beverage, and Sportswear. 

The evaluation of each individual loyalty program was conducted from the perspective of the end customer. Key evaluation areas include User Experience, Functionality & Features, Branding, Marketing & Promotion to ensure a comprehensive overview of the program's effectiveness and appeal.   

With impressive performance in virtually all categories assessed, Albert Heijn emerges as the absolute Loyalty Leader. It is also worth noting that in each market segment, at least one brand secured a spot in the prestigious Top 10 ranking. The benchmark reveals that, on average, brands score highest in the category of Ease of Use, followed by Brand Positioning, Marketing & Promotion and Functionalities & Features. These results highlight the crucial role of engaging user experience as a foundation for a solid loyalty program. Additionally, the results highlight that Brand Positioning, Marketing & Promotion and Functionalities & Features are areas where many loyalty programs still have room for improvement.

Interestingly, 4 out of the top 10 loyalty programs come from Dutch companies, showing that they can compete with major international players such as Amazon and Nike. This success reflects the growing relevance and effectiveness of Dutch loyalty programs in the global market.   

Category Analysis: User Experience 

In the user experience category, it is notable that Gamification is the least used feature within the loyalty programs evaluated. This finding can be attributed to the complexity involved in implementing interactive experiences with game elements in such programs. Nevertheless, when properly implemented, gamification can be a differentiating feature, as seen at Adidas with their loyalty program adiClub. Adidas deployed gamification by earning points by exercising, which motivates consumers to maintain a healthy lifestyle. This approach reflects Adidas' authentic brand experience in a positive way and offers attractive differentiation in the market.   

The full report provides in-depth insights into the application of user experience such as gamification, registration process, access to information, personalization etc. within loyalty programs. 

Category Analysis: Functionalities & Features 

In the Functionalities & Features category, one notable trend is that large and prominent companies, such as Amazon, Rituals and Nike, score lower on functionalities. This striking finding can be explained by the fact that these companies offer traditional membership benefits rather than a loyalty system based on loyalty tiers, which leads to a more limited customizability of available features. This limits the flexibility of the program, making it more difficult to meet the diverse needs and preferences of customers.  

The full report provides in-depth insights into the application of Functionalities & Features such as points collection, type of rewards, status visibility etc. within loyalty programs. 

Category Analysis: Brand Positioning, Marketing & Promotion 

Within the Travel & Tourism and Banking sectors, companies stand out by building impressive loyalty networks, made possible by strategic partnerships with airlines, hotels and financial service providers. This involves offering integrated customer experiences and various loyalty rewards. These collaborations extend the reach of customers and expand services beyond their core businesses.  

In the Fashion Industry, there is a notable focus on Corporate Social Responsibility (CSR), in line with the growing awareness among consumers about environmental and social impact. Brands within this sector are actively incorporating CSR initiatives into their loyalty programs, demonstrating their commitment to sustainability, ethical sourcing and social responsibility.  

The full report provides in-depth insights into the application of Brand Positioning, Marketing & Promotion such as partner brands, cross-promotion, CSR, etc. within loyalty programs. 

Loyalty programs go beyond rewarding loyal customers: they strengthen brand loyalty, improve customer retention and encourage repeat purchases. The SiaXperience Loyalty Benchmark reveals that what was previously limited to the traditional loyalty points system has now given way to advanced technologies, data-driven insights and personalized rewards. In the long run, loyalty programs can be invaluable for any company to invest in customer loyalty to maintain or strengthen its market position.  

Sia Partners is a next-generation consulting firm focused on delivering superior value and tangible results to customers as they navigate the digital revolution. The insights gained from this benchmark, combined with the expertise of SiaXperience, the digital and design arm of Sia Partners, can help you optimize your loyalty strategies to maintain a competitive advantage in the marketplace and foster lasting customer relationships. Our team of experienced experts is well-equipped to offer customized solutions that align with your company's strategy and goals, with the larger objective of maximizing the ROI of your loyalty program.