Could Your Loyalty Efforts Be Driving Customers Away?
A poorly designed loyalty strategy can actually hurt your brand reputation at a time when human loyalty and consumer engagement are more important than ever.
In the past, branding was typically one-way, messaging flowed from the brand to the consumer, but a well-designed loyalty strategy can, when appropriate, reinforce an emotional connection between brand and consumer.
This means that too often, traditional efforts to drive customer loyalty end up transactional in nature, based on rational drivers. These efforts drive customer behaviors or communicate messages that are misaligned with the brand, resulting in consumers who are not really loyal, but “sticky.”
When customers are driven primarily by discounts or perks, they don’t become true brand advocates. On the other hand, emotionally driven loyalty services are only attractive to consumers that have already become brand advocates.
The challenge is being honest with consumers in a way where loyalty is the result of a true connection between a company and its customers.
of consumers abandon loyalty programs without redeeming points
28%
of loyalty memberships are inactive
54%
of consumers have a negative perception of loyalty programs
90%
The Current Landscape of Customer Loyalty
There is a disconnect between customers and retail. According to Capgemini research:
Source: Capgemini Digital Transformation Institute Survey, The Key to Loyalty; August-September 2017, N=9,213 consumers.
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This means that too often, traditional efforts to drive customer loyalty end up transactional in nature, based on rational drivers. These efforts drive customer behaviors or communicate messages that are misaligned with the brand, resulting in consumers who are not really loyal, but “sticky.”
When customers are driven primarily by discounts or perks, they don’t become true brand advocates. On the other hand, emotionally driven loyalty services are only attractive to consumers that have already become brand advocates.
The challenge is being honest with consumers in a way where loyalty is the result of a true connection between a company and its customers.
Source: Capgemini Digital Transformation Institute Survey, The Key to Loyalty; August-September 2017, N=9,213 consumers.
of consumers abandon loyalty programs without redeeming points
28%
of loyalty memberships are inactive
54%
of consumers have a negative perception of loyalty programs
90%
The Current Landscape of Customer Loyalty
There is a disconnect between customers and retail. According to Capgemini research:
Continue Reading