News by Topic
- Search Marketing
- Email Marketing
- Loyalty Marketing
- Mobile Marketing
- Social Marketing
- Viral Marketing
- Trends & Ideas
- Internet Marketing 101
Study: Brands must reevaluate loyalty
Loyalty isn't what it used to be, and brands are losing money because of it. That's a key takeaway from the new Accenture Strategy report, "Seeing Beyond the Loyalty Illusion". According to researchers more than half of US consumers have changed brands/providers in the past year.
Switching providers/brands isn't a death knell - at least usually - but what is perhaps more important is that nearly 20% of those surveyed say their feelings about brand loyalty have changed completely.
While some brands are staying up to date with their loyalty program, many are not, and those changes to customer loyalty and brand loyalty are costing, some experts suggest the costs to brands from bad loyalty programs is in the billions.
"Every consumer has a natural instinct around what makes them 'stick' to a brand. The traditional 'low price' and 'reliable service' mechanics are no longer as effective at driving loyalty," said Robert Wollan, senior managing director, global lead of Advanced Customer Strategy at Accenture Strategy. "With 66 percent of U.S. consumers spending more with the brands they love, organizations that stick to traditional approaches and don't explore the new drivers influencing loyalty risk draining profitability and pushing customers away - even when they have the best intentions or are following their historical playbook. It's time for organizations to take a fresh look at loyalty."
Other interesting takeaways from the report include:
• 59% of consumers 'feel loyal' to brands offering them small rewards - like gift cards and personalized discounts - because of their loyalty
• 41% 'are loyal' to brands that personalize their program offerings
• 44% 'are loyal' to brands that ask them to help design/create products
• 23% 'are loyal' to brands that include celebrity endorsements
- Study: Most want loyalty to be mobile
- Expert: Data key to video strategy
- Study: Half of loyalty club members want retail redemption options
- Unilever to up digital spend following display ad trial
- FreeWheel: Video ad views up 24% YoY
- Report: Post-purchase contact key for future engagement
- Ad Roundup: Customer-focused releases
- UK retailers need to improve returns process
Featured White Papers
- Learn Why 83% of Advertisers Are Reporting Superior Outcomes With People-Based Ads
Traditional digital display advertising doesn't work. The information in this report is based on an online survey of 350 senior...
- 2016 Email Marketing Metrics Benchmark Study
To build a world-class marketing program, it's crucial to compare yourself to the best performers - but competitor data can...
- 10 Ways to Use Customer Lifetime Value to Reinvent Your Marketing Strategy
CLV insights can help you to attract high-margin customers, target clusters of customers with untapped value, and retain high-value customers...
- 16 Innovative Loyalty Programs of 2016
Engaging customers in a loyalty program is no easy feat. Read how 16 brands grabbed headlines in 2016 by launching...