Do you use the points you’ve accrued on your credit card? Do you redeem points from the stores you shop at frequently? If you aren’t, you’re among those contributing to the millions of loyalty points lying unused. New research from Accenture Strategy says firms are wasting billions each year on customer loyalty programmes that don’t work like they used to. Organisations must pay attention to the new factors driving customer loyalty in the digital age or risk losing customers for good.
The report, ‘Seeing Beyond the Loyalty Illusion: It’s time you invest more wisely’, gauges the experiences and attitudes of 25,426 consumers around the world, including 562 Indian consumers, about their loyalty relationship with brands and organisations today.
“New ‘languages of loyalty’ have emerged, driven by brands experimenting with creative digital experiences, which have changed the dynamics of customer loyalty today,” said Vineet Ahuja, managing director, Advanced Customer Strategy at Accenture in India. “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.”
