Schedule a discovery call with a Partner at theWild to level up your loyalty game. We'll start with a simple discussion to understand your situation.
Loyalty programs that promise generic rewards to consumers no longer make the cut. The modern consumer has access to data at their fingertips (and loads of brands to choose from), and this means you need to rethink how you can win their loyalty.
The best way to achieve this is to understand the latest trends impacting customer loyalty. Studying them can help you tweak your strategy to drive greater customer retention and boost revenues. Let’s take a look at them.
One of the major factors that connects customers to a brand is their emotions. When a brand supports causes their customers champion, they’ll likely feel more connected to it. Casein point—Patagonia’s environmental activism. It wins them customers who are concerned about the planet.
True loyalty—one that’s driven by emotions—has seen a rise from 27% in 2021 to 34% in 2024 among all consumers. Ethical loyalty has also marked solid growth, going from 24% to 30% over the last 3 years.
This growth in loyalty means consumers place a greater emphasis on brands doing what they consider ethical. If your brand resonates with them, they’ll be more likely to form a strong bond with it than if it didn't. Millennials and Gen Z, in particular, prioritize values like sustainability, so it makes sense to study your customer base and decide on your brand’s persona accordingly.
Additionally, customizing your loyalty rewards based on these preferences can greatly impact the emotional connection customers feel with your brand.
For a long time, loyalty programs have been free to join and available to everyone. However, more exclusive programs (also called premium loyalty programs) have started gaining traction. These typically require customers to register for them by paying a small fee in exchange for additional benefits and perks.
Customers particularly use premium loyalty programs to access items they don’t get elsewhere. In fact, the total percentage of consumers opting for such premium loyalty program subscriptions has hit nearly 50% this year.
A study found that even a basic loyalty program increases customer spending by 18%. This number rises to 30% when you include technology like mobile apps and online ordering features and introduce innovations like multi-tiered loyalty programs and rewards.
The reason? These tiers can give customers a sense of exclusivity and could help you further personalize your offerings for them. Case in point— Break Time introduced a tiered loyalty program and customers in the highest tier ended up driving 42% of their revenues.
In the past, personalization was a nice-to-have, but now it’s the only way to stay ahead of the competition. Customers demand personalization, with 65% of them saying they’ll remain loyal to a brand that offers a better personalized experience.
It’s no surprise then that about half of retail executives plan on providing AI-driven personalized recommendations in 2024. This trend could only accelerate next year.
Failing to do so could result in churn. A staggering 45% of customers say they will switch brands if they fail to personalize their experience. So, what can you do to take advantage of this trend?
Start collecting customer data. Most customers don’t mind sharing their data and personal details with brands, but this number has shrunk in the last year with 23% of consumers saying they're less comfortable about their data being used for personalization.
Creating trust in your brand can do the trick and win you customer loyalty. In fact, 88% of customers say they’d shop again from a brand they trust.
As consumers gain access to more information about brands and products, it’s important to remain transparent and provide value to earn their trust. Some of the steps you can take include:
Social media platforms provide you with an opportunity to connect with your customers on a personal level. With over 5 billion users, social media should be a must-have on your strategy list.
Not only does social media allow you to connect with consumers on a more personal level, but tactics like social servicing can help you win their loyalty. They start seeing your brand in a better, more personable light.
What's more, you can showcase the impact your brand's leaving on the planet to make it better.Take a cue from The Coca-Cola Company and IKEA in this regard. Social and environmental campaigns can help you appeal to those who value sustainable practices.
Influencer partnerships can also allow access to niche portions of your potential customer base. It's not just about the brand endorsement of the social media personality, but also about the exposure it gives your brand to its specific audience. For areas where this has potential overlap with your existing customer base, this can create a strong brand affinity.
Not all potential uses of social media have to do with interacting on the social platforms themselves. Leveraging data from social media gives your brand access to a gold mine of potential information. Using this in retargeting for digital media, or even to research customer segmentation can allow your brand to gain valuable insight you would otherwise miss.
Your loyalty program should evolve with changing consumer needs and preferences. Collecting the right customer data and modifying your program based on this data can do wonders. It enables you to stay in line with shifting customer preferences andmakes it possible to deliver hyper-personalized experiences ensuring that your loyalty program will always remain relevant to your customers.
Ready to elevate your loyalty program to meet the demands of today’s consumers? theWild specializes in creating tailored loyalty strategies that focus on emotional engagement, personalization, and sustainable practices.
Let us help you design a program that not only enhances customer loyalty but builds lasting brand connections.
Schedule a discovery call with a Partner at theWild to level up your loyalty game. We'll start with a simple discussion to understand your situation.
