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Building loyal customers

Customer loyalty as a whole-business outcome - not just a scheme.

Veriteer has helped build customer Loyalty strategy in some of the world's biggest and best retailers.

Customers can only split their attention and wallet in so many ways, and the sheer number of schemes, especially paid schemes like subscription savers, means that adoption rates (and therefore retailer benefits) will be limited.

Veriteer’s unique combination of strategy, brand and experience consultancy lets us see the big picture. And our advice is for brands to see Loyalty as the outcome of their overall customer value proposition, rather than a collection of gimmicks and incentives.

In an era of unprecedented consumer choice and digital transformation, the landscape of customer loyalty is undergoing a seismic shift. Traditional loyalty programs, once the cornerstone of customer retention strategies, are increasingly falling short of both consumer expectations and business objectives.

Recent research paints a sobering picture of this changing dynamic. A 2023 study by Forrester Research revealed that only 32% of customers believe that loyalty programs significantly influence their purchasing decisions, a stark decline from 48% just five years ago. This downward trend is further compounded by the proliferation of loyalty schemes across industries, leading to what industry experts are calling "loyalty fatigue."

Principles

Veriteer's 6 principles for growing true Customer Loyalty.  These aren't tactics; they're a fundamental reimagining of how we approach customer relationships.

  • Viewing loyalty as an outcome rather than merely a scheme represents a fundamental shift in approach, encouraging brands to focus on creating holistic customer experiences that naturally foster loyalty instead of relying solely on transactional rewards programs.

    This principle is crucial because it aligns loyalty efforts with overall business objectives and customer needs, leading to more sustainable and meaningful customer relationships.

  • Out-of-the-box loyalty schemes can be attractive, but they are unlikely to address fundamental issues. Start with a clear strategy.

    Establishing a clear loyalty strategy before implementing tactics ensures that all loyalty initiatives are purposeful, consistent, and aligned with broader business objectives. This principle is essential because it provides a roadmap for loyalty efforts, helping to avoid disjointed or ineffective programs.

  • Using tactics and incentives that are not consistent with your core offer can turn customers off.

    Employing loyalty tactics that align with your brand values ensures consistency in customer experience and strengthens your brand identity. This principle is important because it helps build authentic connections with customers, fostering deeper loyalty based on shared values rather than just transactions.

  • Loyalty is very simple: more customers will spend more with you for longer. Don’t be distracted by vanity metrics like advocacy.

    Focusing on wallet share over time as a key loyalty metric provides a more comprehensive view of customer loyalty than traditional metrics like program enrollment or points earned. This principle is crucial because it encourages brands to think long-term and prioritise sustainable customer relationships.

  • Being open and ethical about data collection and usage builds trust with customers and ensures compliance with evolving privacy regulations. This principle is vital in today's data-driven world, where customers are increasingly concerned about how their information is used.

    According to a 2023 KPMG survey, 86% of consumers say transparency about data usage is a key factor in their loyalty to a brand, and 78% are more likely to be loyal to a company they trust to handle their personal information responsibly.

  • Creating robust mechanisms for gathering and acting on customer feedback enables continuous improvement of loyalty initiatives and overall customer experience. This principle is essential because it allows brands to stay responsive to customer needs and preferences, driving ongoing loyalty.

    A 2022 Qualtrics XM Institute study found that companies that regularly act on customer feedback are 2.3 times more likely to exceed their customer retention goals compared to those that don't have a systematic approach to customer feedback.

    We've moved beyond transactional loyalty programmes. Our focus is on fostering genuine bonds where your customers feel truly valued and understood. It's not about doling out random rewards or insignificant perks. Instead, we help you create an environment where the brands your customers adore actually adore them back.

    This level of intelligent empathy is what we help you achieve. As architects of emotional commerce, we orchestrate a symphony of capabilities, channels, and cutting-edge technologies. The result is a transformative approach to engagement, commerce, and loyalty that resonates with both your customers and your teams.

    With Veriteer, you're not just adapting to change - you're leading it. By aligning with our six principles you're setting the stage for a new era of retail loyalty. Welcome to the future of meaningful customer relationships.

    Events coming soon

    🇬🇧 London Loyalty Safari

    Tuesday 10th September, 12-6pm

    Henri, Covent Garden, London

    Sign up

    🇳🇱 Amsterdam Loyalty Safari

    Wednesday 2nd October, 12-6pm

    The Hoxton, Herengradt, Amstermdan

    Sign up

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