2017全球零售业与快速消费品忠诚度展望（英文版）_23页_3mb

Summary of "THE GREAT LOYALTY RESET: A GLOBAL OUTLOOK ON RETAIL & CPG LOYALTY IN 2017"

Core Content

This report explores the evolving landscape of loyalty programs in retail and CPG (Consumer Packaged Goods) industries in 2017, emphasizing the need for a "Connected Loyalty" approach that aligns with modern consumer expectations. It highlights the disconnect between loyalty program managers and consumers, and the critical role loyalty plays in brand success, customer engagement, and business performance.

Main Points

• Consumer Engagement with Loyalty Programs:

  • 80% of consumers belong to 5 or fewer loyalty programs.
  • 50% have abandoned a loyalty program that did not meet their needs.
  • Consumers are selective and value personalization, relevance, and simplicity.

• Impact of Loyalty Programs:

  • 86% of consumers shop more if they like a loyalty program.
  • 63% shop less if they abandon a loyalty program.
  • Engaged members spend 15% more, while disengaged members spend 5% less or less.

• Why Consumers Join Loyalty Programs:

  • Incentives (29%)
  • Relevant rewards (28%)
  • Peer recommendations (10%)
  • Online reviews (9%)

• Why Consumers Leave Loyalty Programs:

  • Rewards are not relevant.
  • Too much work to redeem.
  • Value of rewards diminishes over time.

• The Loyalty "Disconnect":

  • Program managers often lack a true understanding of consumer needs.
  • Consumers perceive loyalty programs as underwhelming or irrelevant.
  • Loyalty is a leading indicator of brand engagement and business health.

• Connected Loyalty: A New Paradigm:

  • Connected loyalty involves integrating data from all consumer touchpoints.
  • It enables personalization, predictive analytics, and seamless brand interactions.
  • It requires data to be shared across departments to drive business decisions.

• Global Loyalty Trends:

  • In North America, 91% of loyalty managers work in retail, 9% in CPG.
  • In Europe/UK, 83% in retail, 17% in CPG.
  • In Asia, 76% in retail, 24% in CPG.
  • 52% of Asian, 47% of European/UK, and 36% of North American managers are implementing or enhancing a complete program overhaul.

• Challenges for Loyalty Program Managers:

  • External challenges: Shift to mobile/digital, rapid consumer behavior changes, fast-paced technology.
  • Operational challenges: Shortage of loyalty experts, lack of integrated solutions, vendor communication.
  • Financial challenges: Reward pricing, perception of loyalty as a cost center, data integration for business decisions.

• Key Recommendations:

  • Broaden metrics beyond acquisition and satisfaction to focus on financial value.
  • Align loyalty strategy with business goals and customer behavior.
  • Leverage data and act on it for personalization and insights.
  • Use market-tested vendors to align data with CRM.
  • Test the program thoroughly before launch to manage risk and refine strategy.

Key Information

• Consumer Behavior:

  • Consumers are selective, active in fewer than five programs on average.
  • They expect personalized, relevant, and easy-to-use loyalty programs.
  • They value meaningful connections, special surprises, and seamless digital experiences.

• Program Performance:

  • 66% of programs have members contributing more than 20% of revenue.
  • 57% of programs see higher response rates from members to non-members.
  • 34% of programs represent 10% or more of the overall marketing budget.

• Case Studies:

  • UGG Rewards:
    • Launched in 2016, it has increased all KPIs, including average order value and engagement frequency.
    • Uses data collection and incentives to encourage engagement beyond peak seasons.
    • Focuses on creating personalized, meaningful experiences at key decision points.
  • 1-800-FLOWERS.COM, Inc.:
    • A case study is included, though details are limited.
    • The report suggests the brand is exploring ways to enhance loyalty through digital and mobile integration.

Conclusion

Loyalty is increasingly recognized as a marketing science, not just a program. It requires a holistic, data-driven approach that connects with consumers on a personal level, delivers value, and aligns with business objectives. The report calls for a global "Loyalty Reset" to meet the demands of a rapidly changing retail landscape and to ensure long-term brand success.