The New Factors Facing SMBs in The Loyalty Game
Accenture released a report that declared loyalty points are dead for consumers and there are new factors at play influencing consumers’ choices for loyalty. The Accenture Strategy report, ‘Seeing Beyond the Loyalty Illusion: It’s Time You Invest More Wisely’, captures the experiences and attitudes of 25,426 consumers worldwide, including 2,532 U.S. consumers, about their loyalty relationship with brands and companies. The report found that over half of US consumers have switched their loyalty provider. The report also identified five new factors influencing loyalty today.
According to the Accenture report the five languages of loyalty are:
- Tokens of affection – give US consumers small tokens of affection (like personalized discounts, special offers and gift cards). 59 percent feel loyalty to brands if they present them with tokens and millennials are even more attracted to this than the average.
- Get to know me – Interact with them through the consumer’s preferred channels of communications, being on the right device or at the moment of need, respecting their time and not over communicating. 85 percent are loyal to companies that safeguard and protect the privacy of their personal information.
- Thrill seeker – Engage consumers in co-designing products and services. Introduce them to new experiences, products or services – especially those using new technologies in the experiences. Forty-four are loyal to companies that actively engage them to help design or co-create products or services.
- If you like it, I like it – Partnering with celebrities or social influencers, support shared social causes like charities or social campaigns. 42 percent are loyal to companies that their family and friends do business with.
- Hook me up – Connect consumers with other providers, let them use their loyalty points with them (such as Plenti) and keep consumers up on the latest products and services. 51 percent are loyal to companies that keep them on the cutting edge by consistently offering the latest products and services.
According to Wave 20 (3Q/2016) our Local Commerce Monitor™, 82 percent of small businesses maintain a customer list for communication and 57 percent operate their own loyalty programs. Small businesses need help in understanding the best ways to connect with their loyal customers through the right mix of marketing channels.
Working with small business clients who have a loyalty program to implement some of these marketing strategies based on their customer base can increase sales. According to the study, 55 percent of US consumers express loyalty by recommending companies they love to family and friends and 43 percent increase their level of business they do with companies the love.