According to a new report, “Seeing Beyond the Loyalty Illusion,” from Accenture Strategy, by Jim Tierney, customer loyalty programs aren’t working like they used to, and marketers need to take a fresh look at their respective strategies to ensure success.
The report gauges the experiences and attitudes of 25,426 consumers around the world, including 2,532 U.S. consumers, finding that 54% of U.S. consumers have switched providers in the past year, and 18% confirm their expectations around brand loyalty have completely changed. The report also identified five new factors influencing loyalty today.
Robert Wollan, senior managing director, global lead of Advanced Customer Strategy at Accenture Strategy, says “… new ‘languages of loyalty’ have emerged, driven by brands experimenting with creative digital experiences, which have changed the dynamics of customer loyalty today… traditional ‘low price’ and ‘reliable service’ mechanics are no longer as effective at driving loyalty…”
With 66% of U.S. consumers spending more with the brands they love, organizations that stick to traditional approaches and don’t explore the new drivers influencing loyalty, risk draining profitability and pushing customers away, says the report.
According to the report, there are five languages of loyalty which are driving customer relationships in the digital age, particularly among U.S. millennials:
Evan Magliocca, brand marketing manager for Baesman Insights & Marketing, concludes that “… instead of clumsy, one-size-fits-all programs, members expect an agile, personalized program that worries more about the needs of the customer than it does the program’s liability rate… Loyalty programs need to utilize a scalpel, not a sledgehammer, to nurture and build members…”
For additional information from the report, please visit here.
This is very interesting information. Is the, "Seeing Beyond the Loyalty Illusion," report referenced available?
go here, Kymberlaine, to find original and availabity of the report... https://www.loyalty360.org/content-gallery/daily-news/it-s-time-for-marketers-to-take-a-fresh-look-at-cu