Loyalty Landscape: The State of the Industry
Brands are expanding loyalty strategies beyond the traditional loyalty program functionality. Customer experience and customer engagement are becoming critical parts of the customer loyalty scheme. Budget allocation to customer loyalty is on the rise.
The expansion of loyalty as process, not just a program, is creating growing pains. Brands say they are struggling to accurately measure the costs, impact and success. Companies are still relying on short-term metrics to assess loyalty tactics and strategies, despite the notion that loyalty happens in the long-term.
Customers are enrolling in programs, but brands fail to keep them engaged and active. Program membership and retention rates are strong, but active participation and reward redemption rates are below 50% for most brands.
Winners of the Loyalty360 Awards are taking a different approach than the market at-large and see success as a result. While the winners were more likely than the market at-large to use a traditional points-based program, they also recognize the importance of including a wide variety of tactical components in their loyalty strategy. The group is also using a wider range of metrics to assess loyalty marketing effectiveness.
Customer loyalty is in the midst of a reinvention, spurred by the promise of new technologies, customer data and measurability. The Loyalty Landscape report will bring clarity to the current and future states of customer loyalty. Building on the insights revealed in previous reports, our next report will include benchmarking metrics and longitudinal findings.
Check back soon for more information on our next Loyalty Landscape survey and report!