Loyalty underpins e-commerce in 2020 as world goes digital
Retail professionals agree: 2020 will mark a significant year of development, with loyalty at the core of digital commerce. Loyalty programmes, emotional connection to brands and higher level customer interaction will feature strongly.
This is according to leading independent customer relationship management company LoyaltyPlus, which emphasises the accuracy of PDI Software’s market expectations, including: rise of data-driven loyalty marketing, omni-channel marketing, artificial intelligence, the dominance of fuel saving as a loyalty currency, and the growth of loyalty mobile app adoption.
The company leans on over 25 years’ experience in the development and application of cutting-edge programmes and partnerships – and its leadership in helping businesses ensure their customers remain loyal to their brands while optimising all touchpoints and customer experiences.
LoyaltyPlus has conducted extensive research and according to a hubspot blog, the top 10% of your loyal customer base is spending three times more than your average customer, and customers with an emotional connection to a brand have a customer lifetime value that is four times higher than the average customer.
Significantly, 47% of customers won’t engage with a business after a moment of brand disappointment, and 52% of loyal customers will join a loyalty programme.
With digital transformation disrupting markets the world over, the role of loyalty-based programmes will become more significant. Reward programmes will be used to strategically grow emotional loyalty with brands, and many businesses will pay close attention to touchpoints.
LoyaltyPlus says those businesses hoping to capitalise on loyalty programmes will focus on flexibility, partnerships and making rewards more accessible, easier to use and uncomplicated.
Another hallmark of e-commerce is the massive uptake of mobile solutions and the application of mobile platforms to facilitate digital payments, ewallets, remittance service and much more.
The advent of smart mobile technology, reliable and affordable connectivity means that retailers can now take advantage of the omni-channel approach. It is now feasible, says LoyaltyPlus, and adds a new dimension to the loyalty programme experience.
As Currency Alliance suggests, digital touchpoints empowers the service provider or business to gage the level of customer satisfaction and also the ability to customise, change or tweak strategies.
Businesses that want to compete in any market in 2020 will have to be acutely aware of customer touchpoints. These are impacted by market realities including instant gratification, corporate social responsibility and personalisation.
When it comes to loyalty programmes, it is really about leveraging tiered programmes and ensuring customers who invest in paid memberships received a return on their investments.