Marketers are expanding customer loyalty strategies beyond the traditional loyalty functionality. Most notably, customer experience and customer engagement are included in brand customer loyalty strategies nearly as frequently as traditional loyalty programmes, according to Loyalty 360's second annual 'Loyalty Landscape: The State of the Industry' report. This article is copyright 2015 The Best Customer Guide.

The survey of 300+ marketers revealed new insights about the current state of loyalty marketing, covering customer loyalty strategy scope, budget, challenges, business impact, metrics and benchmarks.

Loyalty/rewards programme continue to be the component that is most widely included in loyalty strategies (78%), but customer experience (69%) and customer engagement (66%) are included almost as frequently. The report also showed that investment has shifted to loyalty from other marketing components in 2015.

More companies are reporting that they have allocated greater than 10% of their marketing budget in 2015 compared to 2014. Marketers say they are facing new challenges of managing, monitoring and measuring customer loyalty as it expands to touch more parts of the organisation.

"New tools and technologies that promise to help win customers' hearts, minds and wallets are being introduced at such a rapid pace. That, along with verticals that are becoming saturated with loyalty programmes, is causing marketers to think differently about how they can build loyalty at every phase of the customer journey," said Loyalty360's CEO, Mark Johnson. "As more components are added, measuring the costs and impact of the entire strategy is a challenge."