Marketing

When it comes to loyalty consumers all about experience, service, perks

Photo: Adobe Stock

February 23, 2024

While a great product is the top reason consumers love a brand, customer service, loyalty programs and experience still have the top impact on whether a consumer keeps doing business with the brand.

That's a top finding from the 2024 Loyalty Barometer Report from Merkle, a customer experience management provider.

Now in its sixth edition, the research report reveals how consumer mindsets are shifting and where brands may need to pivot to stay ahead of the curve and remain relevant.

The report surveyed 1,500 U.S. consumers, and polled them on a variety of topics related to building brand loyalty and what drives them to do business with certain brands, from participation in loyalty programs to data privacy and personalization.

"With consumers having more control and buying options than ever before, winning in today's experience economy requires marketers to reach customers with the right offer at the right time, at the right place, and via the right channel," Chris Wayman, EVP, promotion, loyalty, and messaging, Merkle, said in a press release on the findings. "Our Loyalty Barometer Report outlines how consumer demand for loyalty programs — and the elevated experiences they deliver — remains high. Brands can further enhance loyalty strategies through emerging technologies, such as AI, to evolve with their customers' rapidly changing expectations and remain relevant in these critical moments in time."

Additional highlights include:

• Loyalty strategies will need to evolve to catch up to rapidly changing customer expectations and harness the value from emerging technologies.
• Consumer demand for loyalty programs remains high, with participation in both paid and free programs increasing compared to the previous report.
• Financial rewards must anchor program value exchanges, and brands should wrap financial value exchanges in differentiated benefits, adding value beyond discounts.
• Consumer distrust around using their data will erode loyalty program value. Brands need to be transparent and show tangible value from sharing data.