State of Play of Customer Loyalty

Delivery

This report comes in PPT.

Key findings

Loyalty in a time of disloyalty

Loyalty is at a crossroads with businesses rethinking and revitalising their brand strategies in light of the changing consumer preferences, e-commerce boom and dynamic economic conditions. Curating an emotional bond with consumers becomes a dominant factor for adding value and increasing retention.

Conscious consumers

While monetary benefits are top of mind for consumers in terms of loyalty, consumers are now seeking more from brands from emotional satisfaction and simple communication under a safe platform. On the other hand, consumers are easily triggered by information, risking retention of loyalty and requiring careful attention from brands.

Multiple forms of value

Loyalty programmes drive value in terms of revenue and data. Loyal customers will spend more per trip than the average customer, and they could be convinced to join lucrative paid loyalty schemes. These customers are also likelier to trust and engage with a company’s digital channels, providing valuable data on their shopping habits.

Shift to emotional loyalty

Next-generation loyalty will place the customer in the driving seat, building emotional connection between brands and customers through novel ways of engagement. Hyper-personalisation will be key to foster trust and a long-term relationship.

Next gen powered by Web 3.0

Loyalty programme structure will decentralise, weaving in technology for flexible and consumer-centric reward structure. Powered by Web 3.0, the new era of loyalty programmes will be an open ecosystem driven by communities.