Colloquy loyalty census1/31/2024 ![]() There’s nothing inherently wrong with that the problem arises when companies fail to distinguish between the two groups – the shiny new object (a new member) and the tried-and-true standby (the longtime member). It’s no surprise, then, that loyalty programs spend a lot of time and money trying to attract new members. The lure of something new is a pretty much universal appeal, whether it’s a new car, a new outfit or a new friend. Ignore that fact at your program’s peril.Ĭustomer Acquisition vs. They’re a unique breed with dramatically different ideas about consumerism and loyalty than other demographics. It’s crucial that marketers understand the needs of millennials – those born roughly between 19. Don’t misunderstand millennials: Yes, you were once their age, but millennials aren’t simply you in a time warp.When it comes to loyalty, there truly is strength in numbers. You just can’t do it alone these days partnerships – whether co-branded credit cards, teaming up with complementary companies or joining a formal coalition program – are the only ways to create long-term, differentiated and meaningful value for customers. Partner up to create power: The lone wolf routine is getting old.And, surprise, you’ll naturally acquire new members through reputation, not costly incentives. Driving long-term retention of loyal members will lower your overall investment. Stop acquiring members: You have enough, probably millions upon millions, and chances are good you’re not creating meaningful relationships with them.Ignore that fact at your program’s peril. It’s time for a loyalty shakeup here’s how to start: Millennials are a unique breed with dramatically different ideas about consumerism and loyalty than other demographics. This report examines three areas in particular where marketers should rethink the loyalty equation to create better, more long-lasting and profitable relationships with consumers, as well as better aligning program goals and investments with consumer expectations. So, what can be done? Luckily, a great deal. In other words: the exact opposite of loyalty, and potentially a nudge right into the arms of the other guy. In fact, such blah efforts that don’t stand out from competitors can actually do more damage than good by syphoning money into copycat value propositions and helping a competing program that offers a more meaningful experience. Playing follow-the-leader by creating a lookalike program that doesn’t differentiate itself isn’t going to help. Our Census revealed a stagnant market in which more than half of members – 58% – don’t even bother to participate, much less become engaged and enthusiastic members. The bad news: Active participation in those programs continues to decline. Of the total membership, consumers are active in only 42% of enrolled programs.īy 26% to 3.3 billion, from 2012 to 2014. In our 2015 COLLOQUY Loyalty Census released earlier this year, we revealed that memberships jumped The good news is that consumers still love to join loyalty programs and show no sign of slowing down. They often fall short of meeting consumers’ needs for utility and reasonable time to reward, lack true differentiation and struggle to keep pace with technologies that are emerging at a staggering pace. and Canadian loyalty-program members and found many programs lack clarity and ignore – or simply fail to discover – what customers truly value. COLLOQUY recently conducted a major survey of more than 2,000 U.S. And misalignment between program investment and business objectives is leaving money on the table, diluting retailers’ investment and failing to provide the experiences that create real longterm emotional loyalty. But loyalty marketers aren’t doing enough to drive engagement and value for program members. It’s based on a sense of trust, on the expectation that companies will be responsible stewards of their personal data and use it to create personalized, meaningful and rewarding experiences. But are they still effective? Marketers continue to pour more and more time and money into their programs, but are they getting the kind of payoffs they expect in long-term relationships, customer engagement and impact on sales and profitability? Or are they wasting their entire loyalty investments? Loyalty is about much more than a program it’s a way of thinking about customers’ entire experience and creating an environment where they want to forge deep and long-lasting relationships. Sure, there’s no doubt that loyalty programs are still popular. Customer Loyalty in 2015 & Beyond | October 2015Ĭustomer Loyalty in 2015 & Beyond Are You Wasting Your Money?
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