Merkle, dentsu’s leading technology-enabled, data-driven customer experience management (CXM) company, announced the launch of its 2024 Loyalty Barometer Report. Now in its sixth edition, the research report reveals how consumer mindsets are shifting and where brands may need to pivot to stay ahead of the curve and remain relevant.
The Loyalty Barometer Report surveyed 1,500 US consumers, and many of the questions were consistent with previous years’ studies, providing a year-over-year perspective showcased in several of the report’s illustrative charts. Participants were asked about a variety of topics related to building brand loyalty and what drives them to do business with certain brands, from participation in loyalty programs to data privacy and personalization.
“With consumers having more control and buying options than ever before, winning in today’s experience economy requires marketers to reach customers with the right offer at the right time, at the right place, and via the right channel,” said Chris Wayman, EVP, promotion, loyalty, and messaging, at Merkle. “Our Loyalty Barometer Report outlines how consumer demand for loyalty programs – and the elevated experiences they deliver – remains high. Brands can further enhance loyalty strategies through emerging technologies, such as AI, to evolve with their customers’ rapidly changing expectations and remain relevant in these critical moments in time.”
When asked about the top factors that make them feel loyal to their favorite brand, 56 percent of consumers stated that great products were most important to them. However, customer service, loyalty programs, and experience continue to have the highest impact on whether they continue doing business with a brand – all at a higher rate than in the previous report.
The new report highlights four key takeaways for marketers looking to ramp up customer loyalty efforts in 2024 and beyond:
- Converging forces around data privacy and AI are poised to alter the landscape; loyalty strategies will need to evolve to catch up to rapidly changing customer expectations and harness the value from emerging technologies.
- Consumer demand for loyalty programs remains high, with participation in both paid and free programs increasing compared to the previous report.
- Financial rewards must anchor program value exchanges, and brands should wrap financial value exchanges in differentiated benefits, adding value beyond discounts.
- Consumer distrust around using their data will erode loyalty program value. Brands need to be transparent and show tangible value from sharing data.
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