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Leaders struggling to find capital they can use to drive growth may want to look at all the investments they’ve made in the name of loyalty. That’s because loyalty programs typically cost more, and deliver less, than many realize.

To reclaim the loyalty value that is slipping through their fingers, savvy business leaders are starting to rethink what loyalty means for their customers—and for their business. Along the way, they are creating new strategies that unlock loyalty’s untapped potential.

Download the point of view to learn how the leaders are finally speaking the right "language of loyalty."

KEY FINDINGS

Accenture has found that members of loyalty programs generate between 12 and 18 percent more incremental revenue growth per year than non-members.

However, our recent research confirms that for growing numbers of consumers, many loyalty investments are simply missing the mark.

57%

 

of consumers spend more on brands to which they are loyal. That means 43 percent spend the same or less.

36%

consider loyalty irrelevant to their spending.

71%

claim loyalty programs do not engender loyalty.

77%

 

of all consumers retract their loyalty more quickly than they did three years ago.

23%

demonstrate a negative or non-existent reaction to loyalty programs. That means for nearly a quarter of consumers, loyalty spending is actually hurting the relationship.

RECOMMENDATIONS

Companies can maximize loyalty’s value by:

Justifying every investment

Justifying every investment.
Identify and shut down programs that dilute margin.

Boosting acquisition through retention

Boosting acquisition through retention.
Leverage connections of existing customers to acquire new ones.

Learn Millennials’ loyalty language

Learning Millennials’ loyalty language.
Millennials are less swayed by loyalty programs. Understand what they like, and what types of promotions they will embrace.

Encouraging customer advocacy

Encouraging customer advocacy.
Customers that recommend brands to others are critical. Invest in strengthening this loyalty behavior.

Viewing loyalty as a team sport

Viewing loyalty as a team sport.
Capture, analyze and act on customer feedback across silos. Work with partners to share expenses associated with loyalty.

ADDITIONAL INSIGHT



AUTHORS

Robert helps organizations achieve high performance by designing and executing new strategies for consistently providing customers with a differentiated, more profitable and more satisfying experience. He has supported large-scale, transformational programs for clients in the Banking, Consumer Goods and Services, Retail, Communications, Media and Technology industries, as well as for government entities. Robert is based in Minneapolis.

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Phil is a managing director with Accenture Strategy, and a member of the North America Advanced Customer Strategy practice. He has over 25 years of management consulting experience in strategy consulting including customer-centered growth strategy and broad-scale business transformation. Prior to joining Accenture, Phil was a Partner at Bain & Company where he worked as part of the Marketing and Customer Insight group, leading customer experience and NPS engagements as well as growth strategy efforts. In addition, Phil led a unit of Visa, Inc. where he implemented the Net Promoter System focused on Visa's business customers. Phil received his MBA from the Yale School of Management with a concentration in Strategy and Finance, and a BA in Economics from University of Pennsylvania. He is based in San Francisco.

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Fabio helps organizations achieve high performance by designing and executing new strategies for consistently providing customers with a differentiated, more profitable and more satisfying experience. In addition, he specializes in Digital Sales Strategy and Sales Operational Excellence. He has supported transformational programs for clients in the Communications, Banking and Insurance industries. Fabio is based in Rome.

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Kevin helps organizations around the world define their strategic imperatives, and design and develop customer strategies, segmentation and customer-centric capabilities, and value realization programs. He has worked across a variety of industries, within both B2B and B2C business models, to help clients manage multiple initiatives, including many focused on performance and customer data management. Kevin is based in Minneapolis.

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