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What Trends Will Be Driving Customer Loyalty Decision-Making in 2010?
As brands look to enhance their loyalty propositions in 2010 – arvato loyalty services is predicting 5 key market trends:
1 Increased integration of loyalty into broader brand engagement strategies
A growing focus on brand engagement means that loyalty programmes will become increasingly creatively-driven and core to brand strategies in 2010. Creative agencies will take on the planning and design of programmes; collaborating with specialist loyalty service providers, who will take responsibility for delivering the brand promise at all touchpoints. Wider recognition that operational efficiency is one of the best ways to increase the overall value of a loyalty programme to members will accelerate the acceptance of this type of partnership.
2 Centralisation and consolidation of loyalty services
As loyalty managers look to drive down operating costs, there will be a trend towards reducing the number of service providers in any single loyalty programme. By consolidating loyalty services into multi-service providers, clients will achieve economies of scale and integration efficiencies. Service providers who can deliver loyalty services across multiple countries from centralised bases, whilst maintaining or increasing the quality of customer experience, are set to prosper.
3 More integration between short-term promotions and long-term loyalty schemes
Consumers are being bombarded with short-term promotional offers as brands focus on boosting immediate sales. But many cashback offers and vouchers simply encourage brand promiscuity and do nothing to build long-term loyalty. In 2010, more promotional activity will incorporate loyalty elements. Data captured from promotions (in multiple countries) will be fed into centralised databases, with intelligent insights used to drive more timely, relevant sales-driving activity. Loyalty programmes and insights will increasingly be used to deliver targeted sales-driving messages.
4 Drive to increase the perceived value of rewards
In order to increase the attractiveness of their propositions and differentiate themselves from voucher and discount schemes, loyalty programmes will offer more tangible, indulgent rewards with higher perceived value. New brand partnerships will enable loyalty schemes to offer exclusive benefits, driving consumer engagement. ‘Voucher fatigue' may well see UK consumers shift back to a preference for more physical rewards from leading brands.
5 Growth in multi-channel loyalty programmes to offer more consumer choice
Developments in mobile and online technologies will drive more integrated 360° multi-channel loyalty programmes. These will offer consumers more choice in terms of when, where and how they interact with brands' loyalty schemes – with a growing use of online and mobile delivery platforms. Greater flexibility in the delivery of loyalty programmes will increase engagement and the overall value of the scheme to consumers.
arvato loyalty services is well placed to take advantage of these predicted trends, offering a complete range of CRM and loyalty services including data management and analytics, online services, rewards management, partnership marketing, customer services, print and production as well as fulfilment and logistics.
Contact Andrew Mitchell to discuss your loyalty requirements:
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