Organisations are wasting billions of dollars each year on customer loyalty programmes that do not work like they used to, with 86 per cent of consumers switching sides in the past year, say a report.
Organisations are wasting billions of dollars each year on customer loyalty programmes that do not work like they used to, with 86 per cent of consumers switching sides in the past year, say a report. According to the survey by Accenture Strategy, with millions of loyalty points sitting dormant and a majority of Indian consumers retracting loyalty, organisations must pay attention to the new factors driving customer loyalty in the digital age or risk losing out customers for good. “Eighty-six per cent of Indian consumers have switched providers in the past year, and 43 per cent confirm that their expectations around brand loyalty have completely changed,” the report said. It is based on the experience and attitude of over 25,000 consumers around the world about their loyalty relationship with brands and organisations today. “New languages of loyalty have emerged, driven by brands experimenting with creative digital experiences, which have changed the dynamics of customer loyalty today,” said Vineet Ahuja, MD, Advanced Customer Strategy at Accenture in India.
The report also identified new factors influencing loyalty today, including personalised discounts, gift cards and interaction with customers when they need them. “Eighty-one per cent are loyal to brands that safeguard and protect the privacy of their personal information,” the report said, adding that 63 per cent of Indian consumers feel loyal to brands that connect them with other providers, giving them the ability to exchange loyalty points or rewards.
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The report added that 69 per cent consumers are loyal to organisations that present them with new experiences, products or services while 62 per cent show loyalty to brands that their family and friends do business with.
Brands that actively support shared causes such as charities or public campaigns also attract around 64 per cent consumers, it said.