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In today’s high-stakes U.S. retail landscape, sustainable growth isn’t just a goal—it’s a necessity. While most brands pour resources into customer acquisition, the real, underutilized growth engine is sitting right in front of them: their loyalty database.
The secret to unlocking its full potential? Incrementality—getting your existing customers to return just one more time, spend a little more, or engage a little deeper.
Customer acquisition costs in the U.S. have surged by over 60% in the last five years, making retention not just efficient but critical. And yet, most loyalty strategies remain stuck in the points-for-purchase loop, ignoring the real lever of growth: behavioral influence.
According to the 2024 Bond Loyalty Report™ (in partnership with Visa), brands that prioritize activating their existing members see a significant lift in retention, advocacy, and spending. This is where incrementality comes in. It’s not about launching a new program—it’s about maximizing the one you already have.
An August 2023 McKinsey & Company study (Re:think: Focusing on Existing Customers to Unlock Growth) reported the following benefits of pursuing incremental growth from existing customers:
Retention Is Cheaper Than Acquisition
Retaining a customer costs 5–7 times less than acquiring one. McKinsey found that satisfied customers are 20–30% more likely to remain loyal, reducing churn and lowering reacquisition costs.
Revenue Growth Comes from Your Base
McKinsey revealed that 80% of value creation for high-growth companies comes from generating revenue from existing customers. One example: a European energy company reorganized its acquisition teams into a single “win room,” resulting in a 20–30% increase in growth.
Customer Experience = Revenue
From 2016 to 2021, U.S. companies that led in customer experience saw double the revenue growth of laggards. Loyalty programs that connect emotionally—through relevance, timing, and personalization—deliver outsized returns.
Operational Synergies and Cross-Department Collaboration
Focusing on existing customers fosters collaboration across departments such as sales, marketing, and customer service. McKinsey highlights that customer-centric operating models drive agility, resilience, and improved employee and customer satisfaction.
Better Use of What You Already Have
Leveraging existing customer behavior and transaction data to launch new offers can drastically reduce acquisition costs. For instance, major U.S. grocers like Kroger use loyalty data to deliver hyper-personalized offers that drive incremental visits—and millions in added revenue.
Even with all this potential, one stat should keep you up at night:
The average American belongs to 19 loyalty programs—but only actively uses 9.3. (Bond Loyalty Report, 2024)
Your job isn’t just to create a loyalty program. It’s to build one that earns a spot in your customer’s active rotation. That means making your program work harder to drive incrementality.
Most U.S. loyalty programs default to rewarding dollars spent—but this overlooks a big opportunity, especially with low- and mid-tier customers. These segments might not have high basket sizes, but they often represent the largest share of your base.
Visit-based rewards can be powerful motivators. Instead of “Spend $50, get $5,” try:
This encourages frequency, builds habits, and makes rewards feel achievable for everyday spenders.
U.S. Example:
Dutch Bros Coffee built one of the fastest-growing loyalty programs in the U.S. by focusing on visit milestones. Instead of transaction size, they celebrated repeat visits and moments like “your 10th drink.”
Pro Tip: Build milestones that match your brand rhythm—weekly for quick-service restaurants, monthly for big-box retail. Keep rewards small but delightful.
American consumers respond strongly to urgency and limited-time offers. Time-bound challenges create FOMO and increase frequency, especially during off-peak periods.
These nudges can re-engage lapsed users or drive visits when traffic is typically low.
U.S. Example:
Panera Bread frequently runs weekday-only challenges through its MyPanera program, offering limited-time perks like “Earn 5 bonus points on your next breakfast purchase before 10 AM.”
Pro Tip: Use historical sales data to identify quiet times. Then design short, frictionless offers that create urgency without requiring a big spend.
Generic offers lead to generic results. Today’s consumers expect personalized value—and loyalty programs are ideal for delivering it.
Segmentation lets you go beyond “new vs. loyal” and into behavioral clusters: lapsed, at-risk, high-frequency, deal-seekers, and more.
This targeted approach boosts engagement and emotional loyalty. Salesforce’s State of Marketing report shows it can increase purchase frequency by 30% or more.
U.S. Example:
Kohl’s uses purchase and engagement data to power app-only deals, bounce-back coupons, and category-specific discounts that re-engage churn-prone users.
Pro Tip: Start with simple reactivation journeys (e.g., 30/60/90-day inactivity emails), then layer on advanced behavioral segments as you scale.
Gamification works across all age groups when it’s simple, fun, and rewarding. American consumers respond well to achievement-based models that create a sense of progression.
Ideas include:
These features create habit loops and build emotional attachment beyond the transaction.
U.S. Example:
REI’s Co-op Membership uses loyalty tiers, milestones, and a strong community ethos to build long-term advocacy and repeat business.
Pro Tip: Don’t just reward behavior—celebrate it. Notifications like “You’re 1 visit away from VIP status!” or in-app leaderboards can create momentum.
Today’s U.S. shopper is omnichannel, so your loyalty program should be too. If rewards are limited to email or in-store only, you’re missing out.
Let customers:
The more touchpoints, the more visible and valuable your program becomes.
U.S. Example:
Target Circle members engage across app, website, and store—and get rewarded for digital actions like surveys, wish list creation, and more.
Pro Tip: Sync online and offline activity. For example, send a push notification 24 hours after an in-store visit offering a bonus for completing a follow-up online purchase.
If you want your loyalty program to survive in a saturated U.S. market (remember: 19 programs, 9 used), you have to do more than just show up. Incrementality isn’t flashy—it’s strategic. And in a world where attention is scarce and budgets are tight, your best growth bet is the customer who already trusts you.
So dust off your loyalty dashboard. Analyze drop-offs. Trigger nudges. And see what happens when you make it just a little easier for your best customers to return.
This is how you build loyalty that pays back—not just once, but again and again.
August 4, 2025 | 4 Min Read
Most U.S. consumers join 19 loyalty programs—but only use