More companies may look to launch their own loyalty programmes in 2022, according to new research from loyalty management system provider Comarch and research firm Forrester.
Conventional wisdom in the customer loyalty space is that corporations (like Amazon, Starbucks and Sephora) have a monopoly on rewards and incentives programmes.
“Nothing could be further from the truth,” the report read.
Brands are continuously looking for ways to attract and retain customers, and loyalty programmes create a reason for customers to come back to the same brand again and again.
Eighty-four percent of customers are more willing to choose a retailer that runs a loyalty program, and customers who are loyalty programme members generate between 12-18 percent more revenue per year. The new research found that found that running a loyalty programme can result in 3.5 times more transactions per member.
People expect different things from their loyalty programmes, but personalised offers, membership perks and gamification are expected to be the most in-demand. What people want from a loyalty programme also tends to shift over time, and businesses need to be able to adapt to changing needs. At the same time, customers are demanding more than ever from brands, making it especially challenging to tap into the right solutions.
After implementing a loyalty programme, companies may face various challenges from staffing and resource, delivering consistent experiences, understanding customer interactions, and aligning loyalty strategies with overall business strategy.
To overcome challenges and be effective, loyalty programmes must be well-designed and well-managed to constantly evolve to ever-changing customer demands.
