Consumer Behavior

Human moments can play big role in loyalty behavior

Photo: Adobe Stock

August 7, 2024

Human moments of interaction in the retail experience can have a significant impact on consumer loyalty behavior and brands that pull back loyalty earnings and benefits for higher-status members are seeing declines in consumer satisfaction levels.

Those are top findings from The Bond Loyalty Report released in partnership with Visa. Bond's 14th annual report reveals brands that are winning are those offering a strong loyalty experience, according to a press release.

Bond predicts that without demonstrating clear reciprocity with members, companies will continue to face challenges when looking to earn back consumer trust.

"Our data shows the importance of human moments of interaction and the significant impact they have on loyalty behaviors. Leveraging employees to recognize members and ensure they experience the value of the program will set these brands on a path to recovery," Maegan O'Neill, VP of strategy and insights at Bond, said in the release. According to the report, participants must be "recognized" to feel seen, leaning into the human-to-human connections that leave them feeling special.

The influence of loyalty programs on customer behavior is higher than ever with 79% of consumers being more likely to recommend brands with solid loyalty programs and 85% of consumers stating they are more likely to continue buying from the brand.

For the fourth year in a row, the study found one of the top five drivers of loyalty is when program representatives make the customer feel special and recognized.