The Changing Look of Loyalty
Loyalty programs have long been considered an essential part of a well-rounded loyalty strategy, and they can drive significant business results. Best-in-class loyalty programs demonstrate meaningful lifts in spend following program enrollment and disproportionate revenue generated from members.
But the loyalty landscape is changing. Recent world events—the pandemic, civil unrest, and divisive politics—continue to have far-reaching impacts on both our personal and work lives.
Indeed, the past few years have seen tens of thousands of businesses closing. But it's shortsighted to blame those troubling events for recent business struggles. Brands were experiencing challenges retaining and growing customers prior to the pandemic.
Why? One powerful reason brands are failing is their reliance on tired strategies despite an evolving marketing landscape and changing customers.
Customers today are savvy and expectant. They want to be recognized and rewarded for their business. They anticipate personalized service and targeted offers. And they desire greater meaning from their brand interactions. Today’s loyalty programs must evolve to unlock the full potential of loyalty and drive customer lifetime value.
Ogilvy Experience and Sitecore, a leading provider of end-to-end digital experience software, set out to survey consumers around the globe to better understand their current loyalty needs and expectations:
- What drives brand loyalty?
- What propels loyalty program engagement?
- How do consumers want brands to engage with them?
The survey was conducted across 13 markets worldwide, with over 6500 paticipants identified as brand-engaged consumers in the retail, food, services or experiences (airlines, hotels, amusement parks) and financial services industries. Here’s what we found:
- Brand loyalty is driven by more than loyalty program rewards.
- To keep customers engaged with a loyalty program, rational and emotional benefits are necessary.
- Consumers continue to expect customized, personalized, and channel-relevant experiences across the entire journey.
- Consumers are open to brand relationships through loyalty programs and other means. This offers brands significant opportunities to build customer loyalty and drive business impact.
Click here to download a copy of the full The Changing Look of Loyalty report and discover all detailed findings and best practices to bring your brand loyalty strategy to the next level.