Accenture Strategy unveils the new ‘languages
of loyalty’ driving customer relationships in the digital age
Organizations are wasting billions of dollars each year on
customer loyalty programs that don’t work like they used to,
according to new research from Accenture Strategy. With millions of
loyalty points sitting dormant and the majority of U.S. consumers
(78 percent) retracting loyalty at profit-crushing rates,
organizations must pay attention to the new factors driving
customer loyalty in the digital age or risk losing customers for
good.
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The Accenture Strategy report, ‘Seeing beyond the loyalty
illusion: it’s time you invest more wisely’, gauges the experiences
and attitudes of 25,426 consumers around the world, including 2,532
U.S. consumers, about their loyalty relationship with brands and
organizations today. The report found that 54 percent of U.S.
consumers have switched provider in the past year, and almost one
fifth (18 percent) confirm their expectations around brand loyalty
have completely changed. The report also identified five new
factors influencing loyalty today.
“New ‘languages of loyalty’ have emerged, driven by brands
experimenting with creative digital experiences, which have changed
the dynamics of customer loyalty today,” said Robert Wollan, senior
managing director, global lead of Advanced Customer Strategy at
Accenture Strategy. “Every consumer has a natural instinct around
what makes them ‘stick’ to a brand. The traditional ‘low price’ and
‘reliable service’ mechanics are no longer as effective at driving
loyalty. With 66 percent of U.S. consumers spending more with the
brands they love, organizations that stick to traditional
approaches and don’t explore the new drivers influencing loyalty
risk draining profitability and pushing customers away – even when
they have the best intentions or are following their historical
playbook. It’s time for organizations to take a fresh look at
loyalty.”
The new languages of loyalty
Accenture Strategy has identified five languages of loyalty
which are driving customer relationships in the digital age,
particularly among U.S. millennials:
1.
‘Tokens of affection’ – Fifty-nine
percent of U.S. consumers feel loyal to brands that present them
with small tokens of affection, such as personalized discounts,
gift cards and special offers to reward their loyalty.
2.
‘Get to know me’ – Forty-one
percent of U.S. consumers are loyal to brands that offer them the
opportunity to personalize products to create something that is
bespoke to them. Fifty-one percent are loyal to brands that
interact with them through their preferred channels of
communication. Eighty-one percent feel loyal to brands that are
there when they need them, but otherwise respect their time and
leave them alone. Furthermore, 85 percent are loyal to brands that
safeguard and protect the privacy of their personal
information.
3.
‘Thrill seeker’ – Forty-four
percent of U.S. consumers are loyal to brands that actively engage
them to help design or co-create products or services. Forty-one
percent are loyal to organizations that present them with new
experiences, products or services. Furthermore, 33 percent are
loyal to brands that engage them in ‘multi-sensory’ experiences,
using new technologies such as virtual reality or augmented
reality.
4.
‘If you like it, I like it’ –
Twenty-three percent of U.S. consumers are loyal to brands that
partner with celebrities, and another 23 percent feel loyal to
organizations that partner with social influencers, such as
bloggers and vloggers. Forty-two percent are loyal to brands that
their family and friends do business with. Furthermore, 37 percent
show loyalty to brands that actively support shared causes, such as
charities or public campaigns.
5.
‘Hook me up’ – Thirty-nine percent
of U.S. consumers feel loyal to brands that connect them with other
providers, giving them the ability to exchange loyalty points or
rewards. Likewise, 51 percent are loyal to brands that keep them on
the cutting edge by consistently offering the latest products and
services.
“Organizations need to understand the loyalty languages of their
most profitable customers and implement the optimal mix to ensure
they’re delivering the experiences that drive advocacy, retention
and growth,” said Kevin Quiring, managing director, Advanced
Customer Strategy, Accenture Strategy. “An appetite for
extra-ordinary, multi-sensory experiences, hyper-personalization
and co-creation, are changing consumer dynamics around loyalty and
forcing brands and organizations to shift their approaches and
programs.”
Additional U.S. consumer findings from the report include:
Fight for loyalty:
- Sixteen percent of U.S. consumers
currently have a negative or non-existent reaction when brands try
to earn their loyalty.
- Over a quarter (26 percent) think
brands should do everything possible to earn their loyalty.
How consumers express loyalty:
- Fifty-five percent of U.S. consumers
express loyalty by recommending the brands and companies they love
to family and friends.
- Forty-three percent increase the level
of business they do with the brands and companies they love.
For further information on Accenture Strategy’s ‘Seeing beyond
the loyalty illusion: it’s time you invest more wisely’ report,
please visit: www.accenture.com/GCPRloyalty. Join the conversation
at @AccentureStrat #GCPR #loyalty
About the research
Accenture Strategy’s ‘Seeing beyond the loyalty illusion: it’s
time you invest more wisely’ report is based on the findings from
its twelfth annual Global Consumer Pulse Research. The report
gauges the experiences and attitudes of 25,426 consumers around the
world about their loyalty relationship with brands and
organizations today. The survey includes online responses from
respondents in: Denmark, Finland, Sweden, UAE, Thailand, South
Korea, Singapore, Norway, Mexico, Malaysia, Ireland, South Africa,
Russia, Argentina, Turkey, Poland, Philippines, Netherlands,
Belgium, Czech Republic, India, Indonesia, France, Germany, Japan,
China, Brazil, Spain, Canada, Australia, Italy, United Kingdom and
the United States. The survey was fielded in July and August
2016.
About Accenture
Accenture (NYSE:ACN) is a leading global professional services
company, providing a broad range of services and solutions in
strategy, consulting, digital, technology and operations. Combining
unmatched experience and specialized skills across more than 40
industries and all business functions – underpinned by the world’s
largest delivery network – Accenture works at the intersection of
business and technology to help clients improve their performance
and create sustainable value for their stakeholders. With more than
394,000 people serving clients in more than 120 countries,
Accenture drives innovation to improve the way the world works and
lives. Visit us at www.accenture.com.
Accenture Strategy operates at the intersection of business and
technology. We bring together our capabilities in business,
technology, operations and function strategy to help our clients
envision and execute industry-specific strategies that support
enterprise wide transformation. Our focus on issues related to
digital disruption, competitiveness, global operating models,
talent and leadership help drive both efficiencies and growth. For
more information, follow @AccentureStrat or visit
www.accenture.com/strategy.
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AccentureLucy Davies, + 44 777 3044
808lucy.d.davies@accenture.com
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