Loyalty360 Next Generation Loyalty
Carly Stemmer Ivory & Mark Johnson, Loyalty360 | January 05, 2024

Brand interest in customer loyalty continues to be on the rise; however, traditional customer loyalty programs no longer wield the marketing influence they once did. Today, many brands are shifting their focus to the “next” generation of customer loyalty. As the association for customer loyalty, this report will explain what “next generation” customer loyalty means to brands through Loyalty360’s unique lens.

In October 2023, Loyalty360 held qualitative discussions with Brand Members and surveyed over 90 brand marketers to gain deeper insights into their definitions and understanding of next generation customer loyalty, the opportunities marketers are embracing, and the potential challenges hindering their progress. The results highlighted the importance of next generation customer loyalty and shed light on the obstacles marketers must overcome to improve and enhance their customer loyalty efforts.

Key Takeaways:

  • Emerging and innovative technologies such as artificial intelligence (AI), as well as solutions for customer service/support, chatbots/virtual assistants, gamification, and augmented/virtual reality, are top of mind for marketers when it comes to next generation loyalty efforts.
  • Personalization opportunities that can be delivered at scale and in a measurable manner are significant enhancements brands are looking to add to their loyalty strategies.
  • Most brands believe there is a need to cultivate a better understanding of their loyalty efforts internally and externally.
  • The primary obstacles for marketers in crafting a next generation customer loyalty strategy include challenges in resource allocation, organizational commitment, and technology hurdles. Meanwhile, many face difficulties due to the absence of a consistent definition of what precisely constitutes next generation customer loyalty.
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