In order to help marketers and loyalty professionals navigate the current market environment, Antavo compiled an insightful loyalty report on the current and future state of the loyalty market. They’ve run the numbers on the most effective loyalty program features and surveyed hundreds of loyalty experts on their expectations for the next three years in customer retention.
Considering the loyalty management market will be worth $15.5 billion by 2025, now is the perfect time for brands, retailers and enterprises to become early adopters and stay ahead of the curve. The Covid-19 pandemic has forever altered the customer reality and we are witnessing digital transformation as we’ve never seen it before. Retail is going through a reinvention in front of our eyes, data strategy has become especially prevalent with the new privacy laws, and more and more browsers are putting a stop to the use of third-party cookies. Now, e-commerce is rapidly evolving and businesses all around the world have sensed a new opportunity in how modern customers are engaging. An incredible 71.6% of companies are planning to revamp their program in the next three years to follow this narrative.
The concept of loyalty program is changing and the traditional, purely transaction-based loyalty model no longer aligns with the vision of modern brands. A large percentage of up-and-coming loyalty programs will be emotional, meaning that they will emphasize long-term engagement and customer satisfaction. 77.3% of companies whose loyalty program doesn’t reward member behavior outside of the buying cycle plan to change that within the next three years. Loyalty programs also performed extremely well during the pandemic. The report also shows that, for 62.1% of the respondents, loyalty programs have helped to keep their customers engaged during the Covid-19 crisis.
The Global Customer Loyalty Report 2022 is meant to be an action plan for companies. It provides brands the momentum and relevance they need. By helping brands make informed decisions based on an accurate analysis of the current market, they can increase their loyalty program’s performance, drive important business KPIs, and build stronger, longer-term relationships with their customers.
How are companies planning to revamp their loyalty program? Why are they shifting towards a more emotional model? What are the latest trends? Watch the Global Customer Loyalty Report 2022 video to find out these answers and more exciting discoveries.
What makes this report unique is that it extends to the whole world, with insights shared by over 320 corporate survey respondents, including CMOs, CRM executives, and loyalty professionals from around the globe. Furthermore, behavioral data from 25 million member actions tracked via Antavo’s Loyalty Management system ensures a 360-degree view, giving readers a better understanding of how companies are investing in loyalty right now. You’ll also learn about the ROI of loyalty and brands’ attitudes toward loyalty programs . For example, 56.0% of program owners are satisfied or very satisfied with their loyalty program, claiming that their existing reward program contributes to sales, delivers great ROI, and is popular among customers. And 93.1% of companies with loyalty programs have a positive ROI.
“The biggest virtue of a loyalty program is that it changes customer behavior and generates loyalty. If you’re already running a loyalty program when a global crisis hits, then you most likely already have an engaged and invested audience you can lean on. Customers that are halfway through the next tier, or sitting on unspent points are unlikely to abandon you altogether.
And in regards to crisis management and loyalty programs, we shouldn’t forget about the power of data either, especially now, when zero-party data — which can be easily gathered with a loyalty program — is gaining more significance due to new privacy laws. If you can leverage customer data to build a more personal and emotional relationship with customers, it’s more likely that the negative impact of the crisis will be lower on your business, because you can more effectively prevent churn, stay relevant, and rebound faster once the situation normalizes.” Attila Kecsmar – CEO & Co-founder of Antavo