Accessability Links
Cookies on our website
By continuing to use this website we will assume you are happy to receive cookies as outlined in our cookie policy
Accept Policy

Loyalty programmes failing to engage digital customers, says Capgemini

Mar 31
 
Tags: Capgemini
Share this story:
Loyalty programmes failing to engage digital customers...

Loyalty programmes have not evolved with the digital age and are failing to engage customers, according to a new report from Capgemini Consulting.

The 'Fixing Cracks: Reinventing Loyalty Programs for the Digital Age' report attempted to lift the lid on why active participation rates in such schemes are often low and why 89 per cent of social media opinions on loyalty programmes are negative.

Capgemini analysed the schemes of 160 global companies from seven sectors, including retail, banking, consumer products, telecoms, hospitality, airlines and consumers electronics. It also scanned 40,000 conversations on social media to gauge the public's opinions about these schemes.

The report discovered that most programmes follow a basic transactional philosophy where rewards are based on purchases, while only a minority recognise consumers for engaging with the brand in other meaningful ways, such as sharing and liking posts on Facebook.

Furthermore, the research revealed that most loyalty programmes lack personalisation and do not offer cross-channel redemption services. It also demonstrated that negative social media sentiment stemmed mainly from the lack of reward relevance, rigid structures, user experience issues with online channels and poor customer service.

Other key findings included that just 11 per cent of these schemes offer personalised rewards based on a customer's purchase history or location data. Under four-fifths (79 per cent) used a mobile channel, yet just 24 per cent allowed customers to redeem rewards through it.

A large majority (97 per cent) of loyalty programmes are primarily, if not solely, based on purchases made by the customer, while just 16 per cent reward customers for activities like taking online surveys, rating and reviewing establishments or referring friends. Only 14 per cent employ gamification mechanisms to reward customers.  

Capgemini recommends that the focus of loyalty programmes be switched to driving customer engagement, as this is likely to make them more successful. The report suggests that such schemes be viewed within the larger context of a marketing strategy that centres on achieving this goal.

Mark Taylor, global lead for customer experience transformation at the firm, said: "Brands need to revisit their approach to loyalty. For us, the key is to integrate the loyalty programme into the overarching customer experience and to reward engagement, as well as the simple transaction.

"Additionally, since relevance is the highest form of customer intimacy, offering advanced levels of customisation and tailored experiences will enrich loyalty programs and further encourage customer engagement."

Search Mindbench.com for the latest management consultancy jobs and consulting recruitment opportunities or contact us on +44(0)207 089 9017.

Share this story:
Add new comment
Jobs Related to this Post
5 result(s) found 
Page 1 of 1 

£35k-£50k plus excellent bon...
Choice of London, Switzerland and Germ...
Our client is actively seeking exceptional individuals to join their team as Business Analysts in London They are a boutique management consultancy. They partner with private equity firms and
€80k-€90k plus bonus, benefits
Amsterdam, Dutch language not required...
Our client is the consultancy arm of a global integrated marketing agency network. They help our clients grow through disruptions by delivering improved customer experiences
£70k-£100k plus bonus, benef...
Central London
As a communications and culture consultancy that is built around purpose, values and sustainability, every single project that our client delivers makes the world a little bit happier and healthier -
£50k + (OTE £85k+)
London
About: Our client is a global learning solutions and technology provider to the financial services market in the UK. They have a large variety of products through which they educate over 2m
£80k-£100k plus bonus, benef...
London and Midlands
Our client is growing the work they are doing in the Utilities sector. They are looking for a  Managing Consultant or Principal Consultant to be a member of their Core and / or Operations team