The Changing Face of Customer Loyalty

November 2022

The importance of customer loyalty has grown in a time of disruption and rising uncertainty. A central place is taken by consumer-centric strategies, retention efforts and the need to provide added value to loyalty scheme members. One-size-fits all is no longer relevant a tactic, replaced by decentralised and multidimensional ecosystems, which establish an emotional connection with customers and embrace personalised segmentation, with a positive customer experience aided by innovative technologi

EUR 1,375
Request More Information

Delivery

This report comes in PPT.

Key Findings

Disruption on the horizon

Customer loyalty is ripe for disruption in a time of digital transformation, which requires new integrated ecosystems to be established across the whole customer journey and channels of operation, ie digital, social and mobile, alongside traditional retail platforms. 

Emotional connection with customers

Establishing a balance between emotional and transactional loyalty schemes can help boost retention, encourage referrals, and build trust and brand reputation as customer loyalty evolves. 

New business models to the fore

Shifting business models require customer loyalty schemes to be very adaptive and multidimensional, combining price-based benefits with emotional experiences and continuous interaction with loyalty members. These can combine tiered, points-based, partnered, decentralised powered by blockchain, and game-based features in order to provide more flexibility and relevance to different customer segments.

Web 3.0 integrated loyalty schemes – the new kid on the block

Decentralised platforms, which combine blockchain technology and NFTs, can deliver value for all participants or established brand communities, alongside new channels to redeem loyalty rewards with digital assets, supported by exclusive personalised benefits and enticing experiences. 

Sustainable loyalty programmes as added value for consumers 

Eco-conscious behaviour and sustainable consumption take central place among consumers, who are favouring customer-centric green experiences. Loyalty programmes which reflect environmental credentials will acquire, engage and retain customers at scale. 

 

Scope
The new loyalty offer
New concepts in loyalty
Key findings
Concepts from around the world highlight the latest in loyalty
Megatrend Framework: The big picture
How megatrends impact customer loyalty
How are consumers influenced?
From Value to Purpose
Re-evaluating the customer journey
Active customer engagement is key to brand loyalty
Consumer priorities in a time of crisis and their effect on loyalty schemes
Capitalising on the power of experiences and gamification
Za Bank: PowerDraw to win up to 200% cash rebate or become a millionaire
Prada: Turning shopping into a game
McDonald’s: Loyalty programme helps boost digital sales
Nespresso expands its boutique formats to enhance loyalty
PlayStation launches first loyalty scheme to drive success in retail and client engagement
Sino Mall Rewards: Hong Kong’s multi-mall interactive rewards programme
HafH launches first travel gacha to appeal to subscribers and enhance loyalty
P&G moves into phygital reality to engage directly with loyal consumers
Leveraging sustainable customer loyalty
WizzAir: Sustainability rewards scheme to enhance green credentials
Tentree: Investing in strong eco-conscious loyalty programme
Nectar expands green loyalty offering through partnerships
A shift to platform ecosystems makes loyalty schemes more fit for purpose
Transforming customer loyalty through the power of active engagement
MGM: Revamps its loyalty scheme to grow its non-gaming customer base
SeicoMart: Joint loyalty program by local convenience store and resort group
Grenada: Launches its diaspora loyalty programme
E.L.F.: Creating community-based loyalty scheme to support its members
Tata Neu: The new superapp on the market
Rappi: Consolidates superapp status with new loyalty services
Albert Heijn: Omnichannel loyalty scheme for grocery shopping
Alaska Airlines: Introducing a subscription model as part of its customer loyalty push
Egypt Post: Ambitious strategy to boost digital loyalty transformation
JetBlue: Helicopter transfers enhance its loyalty scheme
Built Rewards: Reinventing the rental industry with the help of loyalty rewards scheme
Asda: Venturing into the loyalty space
Brands with first ever loyalty schemes 2021-2023
Can cryptocurrency revolutionise loyalty programmes?
Unlocking brand loyalty with NFTs
How BNPL can be leveraged as part of loyalty schemes?
Starbucks: Trailblazing consumer loyalty innovation
Zithara: UPI-based loyalty programme for SMEs in India
AirBaltic: Introduces Planies to reinforce member engagement
Livi Bank: Launching unique NFTs for its customers
Tab Bank: Offering fractional shares as rewards
Klarna: Virtual loyalty cards with diverse all-in-one experience
Nubank: Introducing cryptocurrency as part of its loyalty proposition
Key takeaways

Retailing

Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.

See All of Our Definitions
Share:

NEW REPORT GUARANTEE

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!

;