Managers must make their loyalty programmes more in sync with reality: survey

If you are trying to attract customers’ loyalty, make sure you get it right. Accenture Strategy’s latest Global Consumer Pulse Research, which surveyed 25,426 consumers globally, including 1,303 Chinese consumers, found that loyalty investments are simply missing the mark for many consumers today.

Seventy-five per cent of Chinese consumers say they are quicker to retract loyalty today compared to three years ago. Another 75 per cent have switched providers in the past year alone. Almost a quarter – 24 per cent – say their expectations around loyalty have completely changed, and just 77 per cent are spending more with the brands they love.

Furthermore, 32 per cent say they have a negative or non-existent reaction to companies trying to earn their loyalty today.

These findings suggest that as loyalty investments have grown, our understanding of how customers behave and how they view loyalty have not kept pace. It’s time for management teams to rethink loyalty and maximise the value of today’s most loyal customers. Without a course correction, companies risk draining profitability and pushing customers away.

Accenture Strategy’s research highlighted the other factors, beyond traditional loyalty mechanics such as good price and reliable service, which are influencing customer relationships and brand loyalty in the digital age. This “languages of loyalty” demonstrates the growing appetite among Chinese consumers for new product and service experiences, and the relationships they want and expect from brands and organisations today. They include:

● “Tokens of affection”: Sixty two per cent of Chinese consumers feel loyal to brands that present them with small tokens of affection, such as personalised discounts, gift cards and special offers to reward their loyalty.

● “Get to know me”: Sixty five per cent of Chinese consumers are loyal to brands that offer them the opportunity to personalise products to create something that is bespoke to them. About 69 per cent are loyal to brands that interact with them through their preferred channels of communication. Seventy three per cent feel loyal to brands that are there when they need them, but otherwise respect their time and leave them alone. Furthermore, 79 per cent are loyal to brands that safeguard and protect the privacy of their personal information.