News

Survey: It's time to get personal with loyalty programs

May 25, 2016

Middle class consumers are expecting more than the traditional retail loyalty program and a personal touch to loyalty strategies can prove lucrative, according to new research.

A Collinson Group survey reveals longstanding loyalty programs are proving less engaging and financial services are boasting the highest customer loyalty activity.

"The survey shows consumers are less likely to recommend a brand to friends or less likely to refrain from switching to a competitor as a result of current loyalty program compared to two years ago. Membership of programs is also lower across eight industries including grocery, retail, hospitality, and airlines than in 2014," the firm said in the announcement.

The results should be taken as a wake-up call to brands, noted the research firm.

"Given the importance of affluent middle class consumers on the fortunes of companies, it is imperative that low-performing initiatives are aborted, and that brands rethink how they recognize, engage and reward customers," said Christopher Evans, director, Collinson Group.

"Global consumers now expect real-time interactions with brands on a platform of their choosing. These interactions should be highly personalized and relevant, and as ever, consumers expect to be rewarded for their continued custom. Brands that are not innovating and addressing evolving customer expectation will simply be left behind."