The UK Loyalty Landscape 2022
£0-£1m annual operating budget for loyalty programmes was the most prevalent amongst our respondents.
Within these sectors, the predominant job function was in Loyalty/Customer Experience (Retention, CRM, Loyalty Management, etc).
The top three sectors companies operated in, each representing 30% of the total, were:
The Insurance sector accounted for 10% of the total.
Financial Services & Banking
Travel, Transport & Hospitality
Retail
29
%
41
%
We asked managers and owners of UK loyalty programmes what lies ahead for customer loyalty. Our survey captures their opinions on the changing loyalty landscape and the value loyalty programmes bring to business, with interesting and sometimes surprising findings.
Loyalty programmes are always changing. Whether driven by rapidly changing customer needs, or by advances in technology, programmes have shape-shifted to match and mirror industry requirements. The COVID-19 pandemic created disruptions that accelerated new customer behaviours and expectations bringing forward a digital revolution by several years but what is next for this evolving landscape?
The changing shape of loyalty
What is the ‘value’ of loyalty to a business?
Extracting customer value
63
%
Branding
51
%
Customer analysis
60
%
When asked how a loyalty programme adds value to a business, these three areas scored highest:
Interestingly, the role of loyalty in providing customer analysis (defined as identifying, profiling, understanding (loyal) customer needs and wants in our questionnaire) and its longer-term effect on the brand is recognised alongside value extraction.
Not all businesses have loyalty programmes. Of those who reported that their companies have no existing loyalty programme, 35% stated that it doesn’t make sense for their company commercially, while 24% claim to not have the necessary technology to support such a programme. Other initiatives these companies have in place to drive loyalty include real-time discounts, special events/treatment and vouchers.
However, nearly three-quarters of respondents (72%) reported that their companies have a loyalty programme with targeted marketing, offers and features. It would be fair to say that most businesses now see the importance of loyalty programmes, even at this, most basic, level.
However, those loyalty programmes outnumber companies going ‘above and beyond’ (with capabilities such as hyper-personal, time-relevant incentives) by 3:1. Loyalty programmes, it seems, still have a lot of growing to do.
The vast majority of loyalty programmes have been active for over one year and 1-3 years is the most common time period for our respondents’ loyalty programmes to have achieved a positive ROI.
reported that their companies have a loyalty programme with targeted marketing, offers and features
reported not yet achieving a positive ROI on their loyalty programme...
...of these, 50% had been active for less than a year with an operating budget of less than £1m
of our respondents’ loyalty programmes have been active for over three years...
...with 35% being at least five years old
What is the state of loyalty, today?
This implies loyalty approaches are maturing into a ‘long game’ where long-term value creation is recognised together with shorter-term directly attributable transactions. The future points to loyalty programmes as a strategic asset, holistically serving the needs of the business.
Our take
64
%
Retail
45
%
Financial Services & Banking
56
%
Travel, Tourism & Hospitality
55
%
Insurance
Relative to other respondents, the Retail sector accounts for more free loyalty programmes with just 15% reporting a hybrid model – the lowest of all sectors.
Retail
Financial Services & Banking reported the highest levels of paid-for schemes. This is perhaps reflective of the different types of benefits on offer from each, with retailers offering discounts and rewards while financial services companies offer more added value experiences, tickets and other tangible benefits.
Financial Services & Banking
Travel, Transport & Hospitality has the lowest relative level of paid for schemes in our survey as the value of a programme in this vertical is proven from the ‘air miles’ concept and Insurance follows this trend too, as brands seek to differentiate their largely homogenous offerings. There is also evidence of hybrid or ‘freemium’ schemes to greater or lesser degrees, across all sectors.
Travel, Transport & Hospitality
The majority of schemes in the Insurance sector are free to join. However, use of hybrid models is growing, with 27% of our survey respondents stating that they run hybrid programmes.
Insurance
Over half of the loyalty programmes in our survey are free to join, so this is still the most popular model. This trend is maintained across Insurance and Travel sectors, while it drops to 45% for loyalty programmes in the Financial Services sector.
Free schemes are still the most common except in Financial Services & Banking
The ability to offer rich rewards as part of the ‘value exchange’ must influence the ability to generate paid-for memberships or subscriptions; companies offering lesser rewards or perhaps predominantly discounts will find it difficult to charge for ‘intangibles’. The loyalty marketplace offers scope for free, paid and hybrid models depending on the ability of the company to create powerful benefits, the market sector context and of course the needs of the customer. Each has its pros and cons; it is for each company to assess what best serves their own cost and customer bases.
Our take
Retail
Makes the most use of their brand discounts
Financial Services & Banking
Tends to use brand discounts and rewards points/miles the most
Travel, Transport & Hospitality
Utilises mainly its brand discounts and rewards points/miles
Insurance
The leading sector for its use of added value experiences
Retail schemes make the most use of their brand discounts (a substantial 73%), then next tend to deploy rewards points or miles (56%) with relatively low use of digital rewards such as cryptocurrency and digital content. So, the Retail sector is still showing a very traditional approach to value as a utility i.e. straight discounts.
Retail
Financial Services & Banking, like the Retail and Travel, Transport & Hospitality sectors, tend to use their brand discounts and rewards points or miles the most, but more interestingly lead the way in using digital rewards like cryptocurrency too. Perhaps this is not so surprising as it aligns with their core payments / financial products. Their use of sustainability-oriented rewards may be driven by the profitability of banks when compared to say the struggling retail sector.
Financial Services & Banking
The Travel, Transport & Hospitality sector utilises mainly its brand discounts and rewards points/miles (56% and 41% respectively) as a way of accessing highly aspirational travel rewards, however it makes the least use of digital content – which is perhaps surprising given that this sector is so rich in high interest, inspirational content. It seems they focus on the value of their rewards instead.
Travel, Transport & Hospitality
Insurance is the stand-out leader for its use of added value experiences such as special access and status recognition, unsurprising perhaps when there is such little opportunity to create value from within their core business operations. Its very high relative use of digital content and discounts off third-party partners shows that insurance companies are striving to differentiate in a competitive market.
Insurance
When analysing the benefits provided by loyalty programmes across sectors, some interesting discrepancies emerge. Unsurprisingly discounts offered on a company's owned brands feature strongly across all sectors (except Insurance). However, there is real variance between the main benefits offered in different sectors.
Discounts still dominate in most sectors but disruption could be coming
So, it seems that insurance and financial companies are leading the way (relatively speaking) with innovation in terms of added value, digital rewards and altruistic content, designed to deepen customers’ emotional engagement. Not having the luxury of going for the ‘easy’ option (discounts or points) has forced them to become more flexible, creative and innovative. In building emotional engagement, these companies will be building bases that are inherently more loyal.
Our take
of Retail opted
for no change
of Travel, Transport & Hospitality
opted for no change
of Financial Services & Banking
opted for greater focus on
added value experiences
of Insurance opted for
more money-saving offers
with third parties
Those working in Retail were more content with the status quo, again perhaps given the inherent financial contribution of those programmes. Nearly 40% opted for no change, with 15% considering a paid-for option and the rest pretty evenly spread between third party money saving offers, surprise and delight rewards, additional tiered benefits and a new rewards currency, varying between 27% and 21%.
Retail
Travel, Transport & Hospitality respondents indicated a preference for keeping things as they are (the second highest at 34%). However an equal number (again 34%) would opt for a greater focus on value added experiences, followed by 25% desiring money saving offers with 3rd parties. Interestingly, the lowest recorded score across all sectors for this question falls to Travel, Transport & Hospitality with just 6% wanting additional tiered benefits for high value customers.
Travel, Transport & Hospitality
Financial Services & Banking respondents scored highest for wanting to provide a greater focus on added value experiences to deepen brand engagement, for a new type of rewards points currency aligned to core payment products and for additional tiered benefits for high-value customers, recognising the disparity in customer value related to net wealth as seen in this sector.
Financial Services & Banking
Like those in Financial Services, our Insurance respondents sought more change than status quo. Those in the highly competitive (and often price-comparison shopped Insurance space) made a powerful bid for more money-saving offers with third parties and the ability to surprise and delight with their brand – showing a need to be different and well ahead of others sectors in this regard.
Insurance
We asked our respondents (to test their loyalty to their own programmes) which main reward feature they would change given the opportunity. The results, especially in Insurance, are surprising.
Contentment (or apathy) looms large for some, others are up for change
Since the only constant in loyalty is the increasing rate of change, standing still is unlikely to be the best option for established programmes as customers’ needs shift and technology changes allow the entrance of new competitors. In a market saturated with loyalty offerings, strategies to renew, refresh and even re-imagine are needed to deliver on the profit, differentiation and customer engagement goals that brands are seeking to address with their loyalty propositions. There is appetite for change across the board and this is the correct inclination.
Our take
Retention is declared the core measure of success.
Customer retention
Enrolment
34
%
Engagement
35
%
We asked our respondents to rank the top three metrics that mattered most to them when measuring the success of their loyalty programmes, with the following outcome:
Customer retention was the only metric to breach the 50% mark for the top three while also topping the lists for first and second choices.
We may assume that retention is crucial given that many customers are now re-evaluating what they need as a result of the cost of living crisis; they’re now more aware of the loyalty programmes they engage with, the places they shop and how they spend their money.
Only 5% of respondents report no relation between their loyalty programme and their overall brand proposition.
95% of companies are somewhat, fairly or completely confident they can keep brand values aligned with evolving social sentiment and ethical trends.
87% recognise partnerships will be important in offering a more personalised customer experience in future.
For the vast majority of respondents, the loyalty programme and brand are connected, with some saying the loyalty scheme is integral to brand experience. In our view, the loyalty programme should bring the brand promise to life.
Responses here show that loyalty leaders are looking at their customer relationships holistically as a brand or programme ‘with purpose’.
There is great alignment between companies from all sectors – loyalty and brand do go hand in hand, propositions will need to keep pace with the expectations of increasingly ethically aware customers and partnerships or sponsorships (including charities and good causes) when activated via a programme can enhance the customer connection.
of respondents report no relation between their loyalty programme and their overall brand proposition
of companies are somewhat, fairly or completely confident they can keep brand values aligned with evolving social sentiment and ethical trends
recognise partnerships will be important in offering a more personalised customer experience in future
Hallelujah! Loyalty and brand are connected according to most respondents:
Retail
Greatest relative spend on points and redemptions
Financial Services & Banking
Fairly meaty spend on technology & infrastructure
Travel, Transport & Hospitality
Makes use of internal and external resources
Insurance
Higher relative spend on technology & infrastructure
The Retail sector reports the greatest relative spend on points and redemptions and the least on programme management resources, reflective of the scale at which these programmes operate. Compared to other sectors, the Travel, Transport & Hospitality sector says it spends most on programme management resources, perhaps linked to front-line customer experience enablement and staffing and least on supporting technology & infrastructure.
Retail
While Financial Services & Banking as a sector has fairly meaty spending on technology & infrastructure and rewards points issuance and redemption, its spending on service benefits provision stands out relative to others, again reflecting the relatively higher margins in this sector where spending on loyalty is key to capture and protect market share.
Financial Services & Banking
Travel, Transport & Hospitality really make use of these internal and external resources, standing head and shoulders above the other industries at 16%, whilst coming in considerably lower for the technology and infrastructure costs – an indication perhaps that many programmes are based on external platforms.
Travel, Transport & Hospitality
Insurance outstrips others in its relative spending on technology & infrastructure but this is a big-ticket annual spend sector. Conversely, they claim to be most frugal in terms of rewards points issuance and redemption spend, possibly due to their heavy use of external offers and incentives as flagged above.
Insurance
Looking into the future, those in Financial Services & Insurance seem to be taking a more modern approach to future trends, technologies and innovations with their spending on technology and service benefits – which begs the question will the Travel and Retail sectors come to regret a lack of ‘future-proofing?’ This remains to be seen but is a risk with conservative, laissez-faire approaches. Perhaps these two sectors are still so impacted by the pandemic that their focus is still around recovery but their sights will soon need to be set on shoring up for the future too.
Collinson would argue that the operational costs of running the programme and technology should be no more than about 20% of the total with most budget being spent on rewards to drive behaviour and effect a positive outcome.
Our take
Looking at programme costs, it’s no surprise that supporting technology and infrastructure plus rewards points issuance and redemption appear to be the biggest cost centres. Interestingly, insourced and outsourced programme management resource are about even. This indicates there’s no real cost saving to be had by outsourcing programme management. Businesses which don’t have the internal resources to support programmes are therefore not at a disadvantage when outsourcing, cost-wise, and arguably might be at an advantage by using external experts.
Points, redemptions, tech and infrastructure often cited as the heaviest costs
12
Only
%
Retail
Financial Services & Banking
Travel, Transport & Hospitality
Insurance
The Retail sector scores second highest (44%) for future investment in rewards points or miles but also scores highest for no additional investment, perhaps due to its current frailty with thin margins and challenging market conditions.
Retail
Financial Services & Banking companies are looking for ‘the edge’ by investing in analytics and innovation more than any other sector, as the ‘winner will take all’ in future by becoming the trusted partner for customers’ banking, payments and wallet needs, including money, points and even cryptocurrencies and rewards.
Financial Services & Banking
Those in Travel, Transport & Hospitality plan to make a greater relative investment in insourced programme management resources, consolidating their current position and pursuing a potential cost-cutting, rather than value-adding, strategy.
Travel, Transport & Hospitality
Insurance-based loyalty programmes report planning greater investment in both points/miles and technology infrastructure because they need to continue to differentiate against existing competition and new start-ups, as well as demonstrate value in the face of price comparison shopping.
Insurance
Yet again, players in Insurance and Financial Services look to be leading the way with technology investment and innovation. It is tough for them to create value from within their brands, so they need to look at new concepts and approaches to creating customer value for success in future.
Our take
Many companies are intending to invest in loyalty over the next two years – however, there appears to be a diversity of investment strategies. Only 12% of respondents (overall) reported no plans for future investment with a low of just 3% of Financial Services & Banking and a high of 18% of Retail businesses reporting this way.
of respondents (overall) reported no plans for future investment
The majority of companies intend to invest – look-out any laggards!
Asked which three trends would have the most positive impact on loyalty in the next 3-5 years, respondents cited ‘Customer Expectations’, ‘Paid Loyalty’ and ‘Costs.’
What drives reliable returns?
‘Customer Expectations’ was the trend most commonly ranked as the ‘Most Impactful’ with 64% of respondents rating it within their top three. According to our surveyed base then, changing customer expectations is the most pressing trend loyalty programmes will have to contend with and address within five years.
64
%
32
%
Paid loyalty or subscription models, Environmental, Social and Corporate Governance (ESG) alignment and use of Artificial Intelligence (AI) are the main innovations being most considered by existing loyalty programmes. In turn, these can deliver greater benefits, deeper engagement and increased personalisation for consumers.
However, most companies are not currently considering technical innovations like crypto-currency, NFTs, Metaverse and Blockchain elements as they seek to move the customer value proposition and customer experience forward.
Paid loyalty in particular stands out here, with 32% of businesses already implementing or having implemented such a scheme, and 45% considering doing so.
Modernisation through innovation
Customer fatigue and their increased expectations are key challenges for loyalty leaders
Increased expectations for better rewards/customer experience
Competitive pressures on making loyalty rewards more generous diluting
29
%
Customer fatigue with loyalty programmes, market saturation
41
%
When asked their biggest challenges in the next three to five years, relating to customer engagement, loyalty and loyalty programmes, the top three concerns overall emerged as:
Drilling down further, 23% of respondents reported that sustainability in loyalty or providing green loyalty options sit in their top three challenges. So moving the eco agenda forward is seen as an issue. A similar number cited paid loyalty and folding the Metaverse into the customer experience as challenging areas. Conversely, cryptocurrency, NFTs and predictive technologies are not yet seen as top three challenges when all sectors are averaged - so they are generally not seen as something to contend with in any big way over the next three to five years. Whether this lacks foresight and ambition remains to be seen.
Looking more closely at the individual sectors though, we see some real differences emerge and this subject is one of them, with Financial Services & Banking gauging AI & predictive technologies to be their biggest challenge. (It’s relevant for some of the responses below though to note that our survey took place in May 2022, just before a large decline in the cryptocurrency and NFT markets).
To address these challenges and convert them into opportunities, Collinson advises:
• Focusing on ‘value creation’ (i.e. expertly using brand assets to construct a motivating and ‘high perceived value, lower cost’ proposition) – this remains core to creating ‘loyalty magic’
• Surfacing the benefits as a simple, easy, engaging and fun customer experience (taking learnings from innovations in other verticals like social media and gaming sectors)
• Being open and transparent about the benefits on offer and how to achieve them, ideally providing consumers with a level of choice and control
Taking a look at what each sector sees as their biggest challenges:
The Retail sector is concerned about customers’ increased expectations around better rewards or enhanced customer experiences
Travel, Transport & Hospitality ranks sustainability in loyalty / Green loyalty options and benefits as the biggest challenges
In Financial Services & Banking, AI & predictive technologies driving programme marketing decisions is proving a challenge
Insurance ranks sustainability in loyalty / Green loyalty options and benefits as the biggest challenges for their sector
Retail respondents are struggling with customer expectations for better rewards, the implementation of cryptocurrencies and sustainability (or green) options. Retailers need to look further than discounting with cashback or coupons and creatively use assets to create value for customers whilst also at the same time protecting retail price points. Cryptocurrencies are a ‘sexy’ new thing and likely to appeal to the early adopter/influencer set and fashion brands are increasingly aware of ESG impacts - including the circular economy and the level of natural resources consumed by fashionwear production.
Retail
Travel, Transport & Hospitality list an interesting mix of challenges, with sustainability and AI & predictive technologies bookending their top 3. Interestingly, and perhaps not unsurprisingly for the sector, their number two challenge is unique in this collection of industries: Compliance with privacy and security regulations. The systemic challenge to many travel companies is sustainability and many have made big increases to engage their customers around these topics, whether that is allowing them to carbon offset with points or help reduce single use plastics. This remains a key challenge and differentiation opportunity for travel brands. The breadth and depth of data that travel companies collect and hold (and the often deeply researched and informed nature of travel buyer behaviour) shows the importance of analytics and data driven personalisation. At the same time, the high profile (and expensive) data privacy breaches by some of the world’s leading travel brands show why this must remain a priority in the travel sector.
Travel, Transport & Hospitality
Financial Services & Banking ranked their top three challenges as AI & predictive technologies driving programme marketing decisions, consumers monetising their data via intermediaries and the implementation of cryptocurrencies and NFTs as consumer rewards, in that order. Post the implementation of PSD2 legislation and ‘Open banking’ it is not surprising to see data as a challenge for Banking and Financial Services, as they are required to reinvent their entire approach to customer data management. As financial institutions, they will already be considering cryptocurrencies as part of their asset management capabilities and extending this further to NFTs maybe indicates their interest in becoming Web3.0 compatible wallet partners that can store all these new asset classes for their customers.
Financial Services & Banking
Our Insurance businesses shared their concerns with regard to AI & predictive technologies (2nd place) but differed in their first and third choices; sustainability & green loyalty options and customer fatigue, respectively. Collecting and using customer data is of course core to the actuarial risk assessment for insurance as well as reflecting their need to present relevant content and information to customers, particularly to compete with the price comparison websites. The move towards ethical investing and aligning with a ‘purpose’ demonstrates the sector is keen to differentiate – tough to achieve with largely homogenous products but more possible with a clearly communicated purpose.
Looking back at our question ‘Which rewards would companies change?’ our Insurance respondents made a powerful bid for more money-saving offers with third parties and the ability to surprise and delight with their brand – showing a need to be different and well ahead of others sectors in this regard.
Insurance
Encouragingly, 40% of respondents believe they are future-proofed to deliver the next generation of customer experience and loyalty, with almost the same percentage again saying they are in the process of adapting. Perhaps companies are so invested in future-proofing because 82% agree that a loyalty programme provides stand-out, differentiating their brand from the competition. While companies may not have all the answers right now, the majority are confident in their ability to handle changes in the landscape of loyalty.
Our take
Retail
Financial Services & Banking
Travel, Transport & Hospitality
Insurance
Retail respondents are very ‘middle of the road’ across all the options, not standing out in any particular direction. They are very well aligned with our Travel, Transport & Hospitality businesses, scoring exactly the same for decentralised programmes (only 2%), paid loyalty (27%) and emotional connectivity – joint highest at 22%.
Retail
Financial Services & Banking are, understandably, worried about increasing consumer concerns around data but have very little concern about being emotionally connected to those same consumers.
Financial Services & Banking
Travel, Transport & Hospitality are very much expecting greater integration with payment methods and have the fewest concerns about data issues. They do, however, just top the charts when it comes to increased consumer apathy to loyalty programmes but then it could be argued their schemes have been around the longest.
Travel, Transport & Hospitality
Our Insurances businesses believe the future is in paid loyalty (by a huge margin compared to the other sectors) but are also the most concerned about the increasingly crowded market. None of them, obviously, see any need for greater integration with payment methods.
Insurance
These findings demonstrate that there are strong shared themes across sectors around the future shape of loyalty and it is encouraging that so many brands share the vision of seamless, omnichannel experiences that are closely connected to brand values. However, it is also true that companies will forge their own diverse and distinct loyalty futures in a way which is right for their sectors and customers.
There is increasing appreciation that loyalty is a ‘long game’ which benefits the entire business; loyalty programmes have become a strategic asset rather than a transactional tool. Almost all but the most nascent and under-invested loyalty programmes realize ROI. However, companies will increasingly need to develop sophisticated loyalty strategies to equip their businesses with multiple benefits and to hold their own competitively.
Some of the more traditional sectors could look to the Insurance and Financial sectors for inspiration in terms of pace, ambition and innovation. Beware - those companies content with the loyalty status quo are likely to be overtaken by disruptors who are already investing in new technologies and models because one thing is for sure - nothing stays the same - in life, industry or loyalty.
Our final take
So, what does this all mean for our respondents? We asked one last question: ‘What is your view of the future direction of loyalty programmes?’ And some commonly shared views came back - a loyalty future with ‘more of the same’, at greater scale, in an increasingly crowded market. Some sectors though do have their own views on specific aspects of future programmes.
A massive, mature and crowded market in future will require break-through thinking
Rewards & Benefits
Click to find out more
Customer Expectations ranked most impactful
42
%
Click each sector to find out more
57
%
57
%
Introduction
Rewards & Benefits
Loyalty Brand and Success
The Financing of loyalty
Future of loyalty
Loyalty, Brand & Success
The Financing of Loyalty
The Future of Loyalty
72
%
7
%
50
%
57
%
35
%
40
%
34
%
39
%
45
%
5
%
95
%
87
%
The majority of companies have loyalty programmes which deliver ROI.
The success of loyalty schemes in delivering ROI is recognised and it appears that where this is not yet achieved, the programme is in its infancy or arguably under-invested. The rewards are there for companies that can dedicate time and spend to their schemes. Those companies just covering the basics at present may be surprised at how their competitors streak ahead during this decade, due to the sophistication of their timely and personalised approaches, driven by advances in technology.
Our take
Value creation comes top of the tree here.
Loyalty and brand – hand in hand?
Collinson has long believed that loyalty programmes should sit at the heart of brands, providing differentiation alongside many other benefits which transcend the scheme itself. Customers need to ‘love loyalty’ and brands need to love customers back. It seems our surveyed brands agree.
Our take
Retention being the key signifier of loyalty success is no surprise, with enrolment and engagement essentially being tactics required to achieve this aim.
Our take
How do we assess loyalty success?
Are free or paid-for programmes most popular?
Programme benefits vary widely between sectors
Which rewards would companies change if they could?
What is the price of loyalty?
Where best to invest?
Customer expectations and seamless experience are rightfully the priority here
Across all sectors, creating a seamless customer experience is believed to drive the greatest loyalty programme returns followed by embedding the programme as a core business strategy. Loyalty is created over a lifetime but destroyed in an instant of poor customer experience, levels of which need to be consistently high for enterprise-wide success.
Companies are now articulating that loyalty programmes should be seamless experiences and form a core strand of the business strategy rather than being a mere bolt-on. Loyalty is not a cure-all for other ills in product or pricing. Loyalty in 2022 and beyond will pay back as a key business strategy providing pan-business benefits as a customer marketing platform with data, communications and incentivisation tools - and it has come a very long way from ‘points make prizes.’
Our take
Paid loyalty is more than making a mark. It is here and set to grow
Perhaps this is due to the nascent nature of the technology or a lack of confidence or understanding of them. Looking at Gartner’s hype cycle model, they are either in the ‘Trough of Disillusionment’ or starting the slow climb out, up the ‘Slope of Enlightenment.’ Either way, mainstream adoption would seem some way away at this point. There is a role for these in the future of loyalty but it is clear that an understanding of the part they can play is required before investment will follow interest. Time is the key variable here and maybe those that do get ahead of the game will steal a march while others watch on from the side-lines. The hype cycle might be correct but the question is perhaps one of timing.
Our take
Plans and predictions for the future of loyalty
Are we nearly there, yet?
Research Demographics
Acquiring customer data and sustaining customer loyalty for long periods is a never-ending challenge that every business faces. While most consumers are members of more than 12 customer loyalty programmes, they are active in less than 50% of those programmes. What makes some programmes more successful than others and how do you make your customer loyalty programme one of those that people use, share and talk about?
At Collinson we work tirelessly with customers to unlock the magic within their business, to design build and deliver the best loyalty programmes that set them apart from their competition and drive desired change – more mindshare, wallet share, advocacy, and Loyalty.
To learn what we’ve done for businesses like yours and how we can leverage Salesforce loyalty management technology across Customer 360 to help you achieve your customer vision and bring your loyalty strategy to life, please get in touch.
Collinson
About Us
Stephen Gilbert
Vice President Salesforce Loyalty
Contact me
This article has a reading time of 10 minutes. Afterwards, you’ll have the latest info about the current and future loyalty landscape in the UK.
Our respondents clearly place more value on creating a competitive differentiator, increasing customer lifetime value and understanding their customers’ wants and needs than they do on using loyalty as a way to create new sales channels or collecting (for example zero party) customer data. For the businesses involved, putting the brand front of mind, building positive brand perception through rewards and creating positive experiences seems to be the end goal.
Notably, respondents are looking not only to keep members but to ensure where possible, they are engaged, as this means the programme has a greater chance of influencing the customer’s behaviour. When this is supported by a rise in engagement scoring which goes beyond the traditional tracking methodologies focused on volume and value, we can start to see an uplift in true loyalty metrics alongside customer satisfaction and recommendation (as measured by Net Promoter Score - still the only commonly used measure of loyalty across the industry).