Antavo, the loyalty technology provider has launched a new report into the state of the loyalty programme market. The Global Customer Loyalty Report 2022 highlights the vital role customer loyalty programmes have played throughout the Covid-19 crisis. Additionally, how the pandemic-induced acceleration of eCommerce looks set to usher in a wave of brand loyalty innovation over the next three years.
According to Antovo’s research 62% of businesses report that their loyalty programme has helped to keep customers engaged during Covid-19. The report suggests the effect is most pronounced for brands running tiered programmes. Programme members who had a higher tier had a 30% higher purchase frequency over the course of the global crisis. This compared to members with a lower tier.
“During the pandemic, brands running loyalty programmes consistently found it easier to keep their audiences engaged. Particularly when it came to their highest value customers,” said Attila Kecsmar, CEO & Co-founder of Antavo. “While the global crisis certainly dampened many customers’ spending power. We noted companies who were halfway through their journey to a higher loyalty tier, or were sitting on unspent points. These companies were far less likely to abandon these favoured brands.”
The need for seamless on and offline experiences
The report also revealed that the need to provide a more seamless on and offline experience is causing more and more businesses to rethink their existing loyalty programmes. While 61% of brands invested in the development of their loyalty strategy during the pandemic. More than two thirds (72%) of respondents are now planning a further revamp within the next three years.
Maciej Kroenke, Partner at PwC said, “Covid-related market turmoil has brought even more attention to the topic of customer loyalty. Brick-and-mortar retailers, as well as a number of eCommerce retailers, focused activities on better understanding and loyalising the customer base.
Looking ahead, loyalty programmes are expected to play an even more significant role in marketing activities. In particular, the improvement of mobile applications has opened-up a new communication channel with customers. As traditional linear media is becoming less relevant, loyalty programmes supported by engaging apps appear the most effective channel. Particularly for reaching younger generations, particularly in large cities.”
Customer loyalty shifts to a more personalised model
The loyalty programme market is predicted to be worth $15.5 billion by 2025. Customer loyalty is shifting from a purely transaction-based model to a more personalised and emotionally engaged model. The focus is now on long-term customer engagement and satisfaction. The report found 77.3% of companies have a loyalty programme that doesn’t reward member behaviour outside of the buying cycle. These companies now plan to change that approach within the next three years.
Planet BrewDog is the loyalty programme of craft beer brewer BrewDog, which uses Antavo’s technology to reward its customers. The company is increasingly focusing on the community aspect of customer engagement, as opposed to rewarding purely transactional behaviour.
Alice de Wend Fenton Head of CRM & Loyalty at BrewDog said, “The main thing that makes our programme unique is the tie-in with one of our key brand pillars – sustainability. Members earn rewards when they offset CO2. We also have a counter to show how many grams of carbon our community has offset. We’re proud of the fact Planet BrewDog is not completely transactional and working towards something that’s good for the planet.
As for future plans, we want to grow the community aspect. Whether it’s up-weighting the gamification element, or having more interactive content. We want to evolve Planet BrewDog into something that’s a little bit more fun and playful.”
Antavo’s report compiles data from 25 million loyalty programme member actions and over 300 corporate organisations. It aims to support programme development and decision-making for brands and businesses across a range of sectors. This ranges from fashion to food and drink. A number of key operators in the eCommerce space such as Salesforce have announced plans to develop loyalty management programmes.
Enterprise Times: What this means for business.
This is quite a large and comprehensive report that explores the current and future state of the loyalty market. This is done through the eyes of companies and loyalty experts. The report is recommended for all brands, no matter whether they currently offer a loyalty programme, plan to launch one, or are in the process of a revamp.
The report indicates the emerging trends towards Direct-to-Consumer (D2C) experiences. This trend is potentially driving a renewed affinity for brands. All players in the retail industry, including brands retailers and online merchants must demonstrate they understand customers on an individual level. Furthermore, this understanding must be integrated seamlessly into their daily lives. This report highlights some good best practice to support this. It explains why a range of brands are embracing loyalty programmes, as a way of differentiating themselves from competition.
