Customers are increasingly empowered in their purchasing, and yet they continue to get lost in the promotional fray from brand messaging, according to the latest AIMIA Global Emotional Loyalty Study.
Loyalty solutions business, AIMIA, found transactional loyalty is not enough and the challenge is for brands to build one-to-one emotional connections with customers to increase visits and transactions and drive growth.
The survey looked at what attributes, benefits and values make consumers emotionally loyal to a brand and their program, with a particular focus on countries including the US, UK and Australia. It considered whether marketing leaders align their budgets and efforts with the emotional drivers of consumer loyalty, and how well brands are personalising to their customers.
The report examined retail, credit card, CPG, airline, hotel and telco programs for four criteria: Rewards, ease of use, customer data use and member treatment and the opportunities in each category. It compared the attributes which make customers loyal vary by region and vertical, and that emotional loyalty is built through more than just rewards.
However, it found most programs are indistinguishable globally, and are largely spend-and-get models with few exceptions.
When it comes to the ideal loyalty program for Australia, the survey found the greatest drivers for an ideal loyalty program are rewards on offer and ease of using the program. In particular, programs with flat value exchanges, such as spend $100 dollars, earn 1,000 points and receive a $5 voucher, may appeal most to consumers, and a simple tier structure based on spend can do the same. In addition, full transparency behind data collection, ideally to personalise their journey, can assist with the value exchange between the customer and brand.
The report also found CMOs are allocating much of their budget to acquisition, when they could be more profitable focusing on retention efforts and personalisation. AIMIA said ample opportunity exists for personalisation across all verticals in each region, although marketers aren’t leveraging the data they’re collecting.
AIMIA said the challenge is for brands to create unique programs distinct from their competition, and to make the leap into individualised loyalty.
Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia.
Invest and earn with Coinbloc .us. Guaranteed Weekly ROI, early signals, fast withdrawals among others. I recommend Coinbloc .us as on...
Hans Jensen
Explainer: What marketers need to know about cryptocurrency
Investment decisions are a big deal, so why not get some guidance? You can day-trade cryptos, BUY and HOLD and evaluate the assets with f...
Dave Sigurd
Gartner: Digital isn't enough of a superpower for CMOs anymore
I normally don’t feel comfortable investing online but because the company I worked for downsized due to the pandemic and I was one of th...
Dave Sigurd
CMO's top 8 martech stories for the week - 9 June 2022
Investment decisions are a big deal, so why not get some guidance? You can day-trade cryptos, BUY and HOLD and evaluate the assets with f...
Dave Sigurd
Creating a marketplace for wellness
A solution for an retail industry data extraction. https://e-scraper.com/usefu...
"e-Scraper" Data Extracting
Catchoftheday launches fee-based online shopping club