Merkle-2018忠诚度展望（英文版）-2018.7-15页

2018 Loyalty Outlook Summary

Core Content

Merkle's 2018 Loyalty Outlook explores how the loyalty landscape is evolving through technological advancements, data utilization, and a shift toward emotional and personalized engagement. It emphasizes that loyalty is both a constant and a dynamic aspect of brand-customer relationships, and that the right strategy is essential for driving real business value.

The report outlines key areas of focus for loyalty programs, including data and privacy, emotional loyalty, loyalty strategy, key challenges and opportunities, and driving engagement among loyalty members. It also provides insights on the five fundamentals for designing and implementing a loyalty program, and discusses the importance of connected loyalty and omni-channel engagement.

Main Themes and Viewpoints

1. Data and Privacy

• Data is central to modern loyalty strategies, enabling personalized interactions and accurate customer profiling.
• Privacy concerns are growing, with regulations like GDPR in the EU raising the bar for data security.
• Consumers expect personalized experiences but are also increasingly aware of data security.
• Brands must find a balance between leveraging data for personalization and ensuring consumer trust and data security.
• New channels like in-home personal assistants (e.g., Alexa, Google Home) offer both data collection opportunities and heightened security challenges.

2. Emotional Loyalty

• Emotional connections are becoming more critical in loyalty strategies.
• Loyalty programs that provide personalized, meaningful interactions can foster deeper brand relationships.
• Non-transactional rewards (e.g., community-building, social media engagement) can enhance emotional loyalty and encourage members to become brand ambassadors.
• Lifestyle brands like Urban Decay are excelling by creating niche communities and tailored experiences.

3. Loyalty Strategy

• A successful loyalty strategy should be centered around creating emotional connections rather than just a rewards-only model.
• Test-and-learn approaches are becoming more popular due to the complexity of loyalty programs.
• Organizational commitment is essential for executing a loyalty strategy effectively.
• Aligning loyalty objectives with broader brand goals and customer expectations is crucial.

4. Key Challenges and Opportunities

• Brands must balance brand essence with customer value and relevance.
• Segmentation and personalized engagement are key to driving loyalty.
• Omni-channel consistency remains a challenge, especially in aligning in-store and digital experiences.
• Regular health checks and KPI tracking are necessary to evaluate program performance and identify areas for improvement.

5. Driving Engagement

• Promotional overlays are effective in re-engaging members and driving program participation.
• Examples include:
  • Guaranteed Rewards: Offering bonus points or coupons.
  • Chances to Win: Instant win games, sweepstakes, and trivia.
  • Mobile Offers: Real-time, personalized promotions via apps or SMS.
  • Viral Activity: Encouraging social media sharing with branded hashtags.
  • Engagement Hubs: Creating platforms that incentivize interaction with branded content.

Key Insights and Recommendations

• Budgeting is a critical first step in designing a loyalty program. Managers must understand the financial requirements and align them with strategic goals.
• IT Infrastructure is a major cost factor. Legacy systems and fragmented data can hinder the creation of a unified customer view.
• Program Operations must be well-structured and financially sustainable. A successful program should generate revenue and reduce costs.
• Marketing plays a vital role in communicating the value of the program and maintaining member engagement.
• Balancing the Budget requires a clear understanding of member behavior, data insights, and strategic alignment.

Opportunities for Growth

• Connected Loyalty: Programs that integrate seamlessly with customer lifestyles and preferred channels (digital or physical) are more likely to succeed.
• Gamification: Creating fun, engaging, and challenging experiences can drive both engagement and emotional connection.
• Social Media Integration: Encouraging members to share content and participate in social campaigns can enhance brand visibility and loyalty.
• Non-transactional Rewards: These can be more meaningful than traditional rewards and help build stronger brand relationships.

Conclusion

The 2018 loyalty landscape is defined by data-driven personalization, emotional engagement, and strategic alignment. As brands continue to evolve their loyalty strategies, they must prioritize customer-centric approaches, security and privacy, and flexible, test-and-learn methodologies. Merkle's report underscores that loyalty is not just about points and rewards but about building lasting relationships and creating value beyond transactions.