As we have reported before (click here, for example), the quest for customer loyalty continues to be both a critical goal and a major challenge for companies of all types and sizes. Given the importance of customer loyalty, why don’t more firms do a better job with their loyalty programs?
“Firms invest heavily in loyalty programs — a key part of their growth strategy to hook today’s fickle and disloyal consumers. More than four-fifths of consumers said such programs make them more likely to continue business with brands; two-thirds said they modify spending to maximize loyalty benefits; and nearly three-quarters said they would recommend brands with good programs, according to a recent Bond Brand Loyalty study, in partnership with Visa. (The annual study covered 400+ loyalty programs across industries and surveyed over 28,000 North American consumers who participate in at least one program, most in the U.S.)”
“However, the study also suggested that many marketers may not have gotten their loyalty programs right. While the number of loyalty memberships each American consumer belongs to has risen each year to 14+ from under 11 in 2014, the number of programs that consumers remain active in has declined to under 7 from about 8 in 2014. Only 22% of loyalty members feel their brand experience is better than that of non-member. With personalization being a big buzzword, only a quarter of loyalty members said they are happy with the level of personalization experience, the study found.”
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