Please enter your username or the email address associated with the account so we can help you reset your password.
Listening to a broad range of consumers on their habits and preferences for loyalty programs is key to future success. Marketers know that consumer preferences have been changing – and expectations have been on the rise for the past few years – and will continue to do so. So, what do today’s consumers value?
With years of customer loyalty experience, the team at Marigold (formerly Cheetah Digital) has a strong pulse on the current customer loyalty landscape. In 2022, Marigold surveyed 1500+ U.S. consumers to better understand their sentiment toward brand loyalty and what they expect from their favorite brands. In an era of economic uncertainty, quickly evolving technologies, but a consistent interest in customer loyalty strategies, where are the most valuable areas for brands to focus their resources?
Loyalty360 sat down with Roger Williams, Head of Loyalty Center of Excellence at Marigold to dive into the state of customer loyalty, talk about changes in the loyalty industry, the importance of personalization, and the future of customer loyalty programs.
Retail & Restaurant Loyalty
Marigold serves a broad portfolio of clients, offering digital marketing, messaging, and loyalty solutions to mid-size and enterprise brands. When it comes to supporting loyalty strategies for its clients in various industries, such as retail and QSR/restaurant brands, it is not a one-size-fits-all endeavor. Williams describes Marigold’s approach as relationship marketing.
“Creating personalized experiences for your customers in the moments they value is crucial. We can deliver that personalization at scale because we're not just a loyalty engine that measures several different signals and analyzes them. We can also deliver that data,” says Williams.
Marigold prides itself on supporting large-scale messaging and digital engagement operations for brands that consumers love and trust. As marketers work to enhance their brand’s personalization efforts, delivering relevant messaging in the right channel at the right time has become a critical part of driving brand and customer loyalty.
Key Findings in Today’s Loyalty Industry
Continuously striving to understand the ever-changing customer loyalty industry, Marigold recently published its latest research report on The State of Brand Loyalty in the U.S. for 2023, analyzing how customer preferences regarding loyalty programs have shifted in recent years.
“Loyalty program usage has increased this year by over half, with 52% of consumers engaging in loyalty programs,” says Williams. “We’ve found that more consumers are craving personalized experiences and unique brand experiences, with the data pointing to around 4% more this year.”
Williams notes that while consumer interest in loyalty programs is high, consumers expect more from brands in terms of personalized content, rewards, and offers. Marigold supports its clients’ loyalty efforts to deliver on these expectations, giving marketers the tools and capabilities to effectively leverage customer data, feedback, and insights.
“One of the things that we discovered from surveying these folks is that about 72% of consumers say they're prepared to pay a higher amount to purchase from their favorite brand. As long as brands are giving customers a relevant and personalized experience, they will reward brands by spending more per transaction and more overall.”
With an increased focus on personalization, brands can make major strides toward their ultimate goal of emotional loyalty and brand advocacy. However, getting to this stage requires getting the basics right and consistently proving value to consumers. Based on Marigold’s research, Williams shared that consumers are actively making decisions based on loyalty program benefits or lack thereof.
“We found that 70% of consumers don't feel particularly loyal to the brands that they purchase from because they're not delivering on those experiences. And 33% of them are actually taking their business elsewhere, so a third of those consumers are walking right out the door because brands are not delivering what they need. The report indicates 25% of consumers have said the lack of a loyalty program was the main reason for them defecting to a competitor.”
Thank you for signing up, please check your email for more information.