Google Ads Adds Loyalty Features to Boost Customer Retention
Customer loyalty has always been a key driver of sustainable growth in e-commerce. Now, Google is making it easier for retailers to turn loyalty perks into ad performance. With new loyalty integrations in Google Ads and Merchant Center, brands can highlight exclusive member benefits right inside their listings — creating stronger engagement and long-term value.
How the New Features Work:
Personalized annotations: Retailers can display member-only discounts and shipping perks directly in both paid and free listings.
New loyalty goal in Google Ads: Advertisers can optimize campaigns for high-value shoppers, automatically adjusting bids to focus on customers with strong lifetime value.
Proven impact, Sephora US tested the feature and saw a 20% increase in CTR by promoting loyalty-tier discounts in ads.
Why This Matters for Retailers:
Today’s shoppers expect more than just discounts. According to Google, 61% of U.S. adults find loyalty programs the most compelling part of a personalized shopping experience. By bringing loyalty benefits to the forefront of ads and listings, retailers can:
Improve click-through rates and engagement.
Increase customer retention and repeat purchases.
Optimize ad spend toward long-term customer value instead of one-off sales.
The Bigger Picture:
Google is signaling a shift — from search and shopping as simple discovery channels to retention engines that strengthen brand loyalty. With loyalty perks tied directly to ad performance, retailers have a new opportunity to win more wallet share from their most valuable customers.
Expect deeper insights and strategies around these updates at Google’s Think Retail event on September 10.
Source: This update was first reported by Search Engine Land.
