When asked to list the top success factors for a loyalty program, respondents grade a clear and well adopted loyalty strategy as the most important factor. In contrast, only 35% agree that they actually have a clear and well adopted loyalty strategy.
Retailers structure their programs to a large extent on bonus points and discounts based on members’ purchase history. To create emotional loyalty where customers feel loyal to the brand companies need to understand their customers. Yet, very few of the participating companies in this study are able to truly understand what their members value.
Only 40% of respondents claim to have clear and implemented processes within their loyalty program. Further, only 20% claim to have the necessary systems and tools in order to get the best effect out of their loyalty program.
Uncertain profitability Measuring the profitability of a loyalty program will always be a challenge. 55% of the respondents in this survey claim to have a clear measure of the profitability of their loyalty program and of these, 82% claim to be profitable. When enquiring about the member base, half of the respondents can´t say how big of a share of their members are truly profitable.