Benchmark Report: What’s the True Value of Your Loyalty Program?

Introduction

For years, the value of loyalty programs has been debated by DTC leaders and retention marketers alike. Skeptics argue they simply reward customers who would have purchased anyway, while advocates see them as powerful drivers of revenue and customer lifetime value.

At Stamped, we’ve heard both sides of the argument. We’ve also seen firsthand how hard it is for brands to truly measure the impact of loyalty without committing to rigorous (and often unrealistic) testing. That’s why we took a different approach.

We’ve analyzed over $5,000,000 in transactions across thousands of loyalty programs to uncover definitive answers about how these programs impact customer behavior. Our new Loyalty Benchmark Report delivers powerful insights that challenge conventional wisdom about loyalty program effectiveness.

Today, we’re giving you a sneak peek at one of those findings.

How reward type changes purchase behavior

One of the most eye-opening discoveries from our research involves how different types of loyalty rewards impact customer spending patterns. The data reveals that not all rewards are created equal, and the structure of your loyalty program offers can dramatically influence both immediate purchase behavior and long-term customer relationships.

Percentage-based discounts (like 15% off) consistently drive higher average order values without significantly increasing the median discount amount. This suggests customers perceive these offers as opportunities to stock up or upgrade their purchases.

In contrast, fixed-amount, dollar-based discounts (like $20 off) often result in customers viewing the reward as a straight discount or “win”—which can actually decrease average order value in some scenarios. Rather than using the discount as part of a larger purchase, many customers adjust their spending to maximize the perceived value of the fixed discount.

What might be the most fascinating is how free product rewards perform. While they may appear less effective at first glance, our data shows customers who redeem free product offers are nearly twice as likely to return within 90 days compared to other reward types.

Even more compelling: nearly 25% come back to repurchase that exact product. This result proves that free product offers aren’t just margin-eaters—they can be strategic tools for influencing long-term behavior and building loyalty that sticks.

What else you’ll discover in our report

This first key finding only scratches the surface of what we’ve discovered about loyalty program effectiveness. Our full benchmark report explores:

• Optimal earning structure for maximum profitability: Our data reveals what types of loyalty programs might be leaving money on the table.
• The connection between reward type and purchase frequency: Which reward structure actually keeps VIP customers coming back more often? We’ve identified specific reward types that correlate with increased purchase frequency among high-value customers.
• Loyalty as a merchandising lever: Beyond retention, learn how to position your loyalty program as a powerful merchandising tool that drives larger basket sizes and encourages product discovery.

Download the complete Loyalty Benchmark Report

Ready to transform your loyalty program from an extraneous cost to a serious revenue driver? Our Loyalty Benchmark Report provides an in-depth look into what makes a program successful, backed by millions of transactions across thousands of brands using Stamped.

Loyalty can help you drive high-leverage repeat purchases from your existing customers, but only if it’s done right. Download our complete benchmark report to access all our findings and actionable recommendations today.