New research from The Lacek Group, an Ogilvy Experience company, shows that the loyalty landscape is changing—outdated loyalty programs, relying heavily on transactions rather than a combination of emotional and rational benefits, no longer appeal to most customers.
To remain loyal, today’s consumers expect a different kind of brand experience.
“This proprietary research confirmed what we already believed t o be true about the shifting nature of consumer loyalty—and provided thought-provoking new insights into consumers’ mindsets and expectations,” said Michelle Wildenauer, senior vice president of strategic services at The Lacek Group, in a news release. “The findings demonstrate consumers’ changing values and their shifting expectations for brands. Designing a successful loyalty strategy demands a deeper understanding of today’s consumers.”
The research, conducted with Sitecore, revealed eight key findings to help brands unlock the full potential of loyalty and drive customer lifetime value:
- Consumers are open to brand relationships
- Today’s consumers have new expectations from brands
- Brand loyalty is driven by a variety of factors
- Brand engagement is critical to avoiding attrition
- Loyalty programs must evolve to meet the full range of consumer needs
- Many consumers will consider paying a membership fee to get desirable services or benefits
- How your program shows up in the customer journey matters
- Brand experiences live beyond the individual customer
Today’s loyalty presents expansive opportunities for brands and stretches far beyond points and miles. It’s bigger than a transactional relationship and requires commitment across the enterprise. The survey findings make it clear that, to be successful, brands must develop creative loyalty strategies based on customer data. They also need to implement loyalty strategies across all phases of the customer journey—from acquisition to activation to advocacy.