Charts
Which Brands Have the Best Loyalty Programs?
Most of us get tired of brands asking for our phone numbers and email addresses because we’re spammed with too many advertisements. But sometimes, providing your contact information will connect you with a brand’s loyalty program, which can offer discounts, free prizes, and cash back. One in ten companies has a loyalty rewards program, so the team at Qualtrics decided to analyze which one gives you the biggest return on investment. They focused only on base-level, free-to-join programs that give customers rewards through regular shopping; that way, the results truly reflect the rewards you earn for the money you spend.
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In the food and beverage industry, Domino’s Pizza offers the best ROI. The team calculated an almost 33% ROI for Dominos, which is by far the best offer, even across industries. You’ll receive about $10 of free food for every $30 spent. McDonald’s isn’t far behind at an 11 to 20% ROI with the MyMcDonald’s Rewards app. You’ll earn 100 points for every dollar spent, and you can use these points to purchase menu items. Papa John’s, Dunkin’, Wendy’s, and Burger King also have strong programs, with ROIs between 10% and 13%. The fast-food industry offers some of the best loyalty programs, earning eight out of the ten best rewards programs on the list.
In the retail and beauty space, Bath & Body Works leads with a 16.5%–19% ROI through the My Bath & Body Works Rewards program. The program allows shoppers to redeem points earned through purchases for free items, early access to sales, and an annual birthday gift. Ulta Beauty’s Ultamate Rewards program offers a decent ROI, too, at 3% to 6% for items that are normally on the expensive side. Their competitor Sephora has a Beauty Insider program that offers a lower 2% ROI, but exclusive free samples and early access to new products supplement it.
Brand rewards are weaker among clothing retailers. H&M, Gap Inc., and American Eagle/Aerie offer a 1%–4% ROI. These programs are still useful for loyal shoppers who know they’ll buy from these brands repeatedly.
Pharmacy and grocery store rewards can be a great help for budget-savvy shoppers. These stores have lower ROIs but can still offer decent rewards. Walgreens’ program took the lead, offering 1% back on most purchases and 5% back on Walgreens’ brand products, resulting in significant savings on generics. CVS has an ExtraCare program with a higher 2% ROI and personalized coupons.
In the grocery sector, Kroger and Safeway/Albertsons offer the highest ROIs, between 1% and 3.5%. These chains also offer a fuel rewards program that can be an incredible budget-saving boon. Lowe’s and Ace Hardware offer 1%–2% rewards programs that may be most helpful to frequent shoppers and small business owners who need materials from these stores.
Outdoor lovers and athletes can earn powerful rewards through the North Face’s XPLR Pass, which offers a 10% ROI, and the Dick’s Sporting Goods ScoreCard program offers a 3.3% ROI. The findings on this chart can help you save big the next time you shop!
