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HEADS OR TAILS?
In the marketing world, loyalty is a double-sided coin. On one side of the coin, it’s a powerful word that describes the pull that a customer has to a brand. On the flipside, it’s a tactic involving the collection of points for rewards or discounts. The former is emotive and strategic – the latter is routine and functional.
In many companies, this duality of loyalty splits conversations at the C-Suite. Certainly, all companies strive for the ideal of loyal customers who resist competitive offers (especially Amazon’s), but must they invest in loyalty schemes to get there? The sheer number of programs in the market means you’re fighting to get into a customer’s wallet, and once there, you need to make sure your best customers with the highest spend potential get the most value. One thing is sure: customer spend potential or open-to- buy is the best place to secure new revenue and steal market share. So you invest, but how, and how much? Is customer loyalty growing and in what sectors? Where are competitors putting their money? What are best practices to stay ahead of customer demands and which experiences do they value?
Indeed, these are the questions that we most often get in boardrooms, and they prompted us to survey the industry, with both a company and a customer lens.
There have been studies done in recent years to establish the size of the industry. Results range from 1.7B to 200B with Compound Annual Growth Rates (CAGR) as high as 25%. Countless blogs and articles are published with claims of finding the next big thing, but that big thing changes every month. We have even seen reports on the death of loyalty, without any solid proof or confirmation. It’s time for research, facts and real conversations around the strategic value of loyalty. In our report, we’re laying out the facts and hope to kick-start a dialogue with C-Suite members who can empower their teams to make the most of their loyalty program.
Over the past two decades, we have worked on thousands of customer loyalty programs with clients in over 50 countries – so we think it’s safe to say we know a thing or two about loyalty. The industry is changing at lightning speed, and we recognize the need for proven performance benchmarks and loyalty best practices. We think loyalty is very much alive for companies who see it as a path to customer engagement and understand the added value that programs offer through robust data and insights. It’s time to turn research from an academic consulting exercise into an industry conversation, so we invited folks we believe to be leaders in this space to chime in on the results.
Are you ready to see the big picture on loyalty? Keep reading for a topline overview of our Loyalty Big Picture report that captures strategic business findings at a glance.
For access to the full Loyalty Big Picture report, including insightful perspectives shared by your global peers, click here.
