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A major 'reset' is becoming critical for brands that do not currently have the ability to gather, analyse, and average customer data, according to a research-based report from data-driven marketing agency 500friends. This article is copyright 2017 The Best Customer Guide.

The report, entitled 'The Great Loyalty Reset: Defining the Future of Loyalty for Retail and CPG Brands', provides recommendations for loyalty program managers as they navigate a constantly evolving marketplace and a global pool of consumers whose shopping behaviors can be unpredictable.

Based on a survey of 200 loyalty program managers and 1,000 consumers in North America, Europe, UK and Asia, the report suggests that the loyalty industry as a whole needs to re-examine the current state of program effectiveness across a variety of parameters.

Repositioning for 'Connected Loyalty' calls for new ways of developing, delivering, and measuring success for today's loyalty programs, the report says. Case studies from UGG Rewards and provide compelling examples of connected loyalty in today's retail environment, reinforcing how consumers now rely more on connected mobile devices to shop, and how they interact with retailers and brands across multiple touchpoints and channels.

According to the report:

  • While loyalty program managers profess to have a 360-degree view of their members, consumers say they often feel as if "the brand doesn't get me".
  • Some 50% of consumers have quit a loyalty program, and those who leave are prone to shop less with the brand or abandon it entirely.
  • Some 86% of consumers who like a loyalty program will shop more, and of those, 58% will shop 15% or more with their retailer/brand of choice.

"Today's loyalty programs must evolve to capture the opportunity that digital marketers have created for retailers around the shopping experience. Consumers demand a personalized and memorable engagement with a brand," said Michael Hemsey, president of 500friends. "It is clear from our study that loyalty programs have been undervalued for their impact on overall brand health and growth."