Joint report by IAG Loyalty / Skift covers today’s rapidly evolving marketplace, where customer loyalty is undergoing a significant transformation. At a macro level, the global loyalty management market, which includes tools and strategies for cultivating brand loyalty, is projected to grow from $6.47 billion in 2023 to $28.65 billion by 2030, according to Fortune Business Insights.
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IAGJoint report by IAG Loyalty / Skift covers today’s rapidly evolving marketplace, where customer loyalty is undergoing a significant transformation. At a macro level, the global loyalty management market, which includes tools and strategies for cultivating brand loyalty, is projected to grow from $6.47 billion in 2023 to $28.65 billion by 2030, according to Fortune Business Insights.
The report states that “as brands compete with an ever-increasing number of loyalty programs, they are recognizing the need to not just attract customers, but to create deeper, more meaningful connections with them”.
The report states that transactional loyalty is dead and new shift is to “forging an emotional bond. Beyond price, convenience, and point-collecting exercises, these programs are about providing more flexibility and creating a sense of belonging, catering to the individual needs and preferences of each customer”.
The report explores the following trends within this new loyalty landscape:
- Building an emotional connection with customers can cut through choice overload, drive behavioral change, increase retention, and enhance growth and profitability.
- Brands should also work toward simplifying the reward experience — with a focus on flexibility, choice, and easy redemption through a shared loyalty currency.
In addition, extending value across the customer journey can enhance both the quantity and the quality of loyalty touchpoints, offering daily opportunities for engagement through partnership strategies.
Considering a range of available solutions within these initiatives, brands should prioritize the ones that best suit their business model and enable deeper loyalty with customers.
The final section of this report aims to help brands take the first step toward developing an actionable roadmap to put these learnings into action and ensure the best return on their loyalty investment.
Some of the key steps of Simplifying the Reward Redemption Experience:
- Streamline the Customer Interface
- Enable Personalized Rewards
- Lower Redemption Thresholds
- Adopt a Shared Loyalty Currency
Source: IAG Loyalty
