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DIGITAL
CUSTOMER
LOYALTY
REPORT2024
Wherenextforloyalty?
There’sbeenadigitaltransformationofloyaltyoverthelasttwentyyears-fromplasticcardsandpapertowebandapp.
Consumersaregivenmorewaystoengage,earnandredeem.Businessesarebenefitingfromgreaterinsight,visibility,reachandretention.Butwhat’sworkingbest?Andwhereistheloyaltymarketheading?
2WWW.APADMI.COMAPADMIDIGITALCUSTOMERLOYALTYREPORT2024
Introduction
Loyaltyismoreimportantthanever.Itisapriorityforevery
brandowner,anddigitalexperienceshavechangedtheway
customerswantandexpecttointeractwiththebrandsthey
buyfrom.
Butarebusinessestakingfulladvantageofeverythingdigital
loyaltyhastooffer?Aretherightplatformsbeinginvestedin
andhowdoyouensuretheyencouragepositivecustomer
experiencestodriveretentionandgrowth?
TheApadmiDigitalCustomerLoyaltyReport2024canvases
opinionfromleadersinloyaltyacrossretail,financialservices,
utilitiesandtravelandleisurewiththeaimofunderstanding
howdigital,andmorespecificallydigitalproducts,are
supportingpersonalisation,whichaudiencesarebeingtargeted
andwherethefuturefocuswillbe.
Earnandburnpointsandexclusiveoffersarewell-established
andbeingusedtogoodeffect(59%and72%respectivelyof
oursurveyrecipientsarealreadyusingthesetacticsintheir
loyaltyprogrammes),butgamification,tieringrewardsand
evenchargingforpaidmembershiparethecurrentexpectation
andneedtobedeliveredseamlesslytobeeffective.Businesses
andbrandownersknowtheyneedtogetthisrightanddigital
platformsarethewaytodoit.
“Theinfluenceourdailydigitalexperienceshaveonloyalty
ismorepowerfulthanever,”saysApadmi’sGroupContent
DirectorJakeSargent.“Gettingitrightisn’teasy,butthe
potentialtounlockvalueforbusinessesandtheircustomers
withgreatmobileanddigitalproductsisreallyexciting.”
Whyisthisimportant?
97.8%ofbrandowners
believeloyaltyhaseitheralwaysbeenimportant,orismore
importantnowthaneverbefore.
APADMIDIGITALCUSTOMERLOYALTYREPORT2024WWW.APADMI.COM3
Theaudience
TheApadmiDigitalCustomerLoyaltyReportis
basedon91responsesfromEuropeanbusinesses
acrossretail,financialservices,utilitiesandtravel
andleisure.Therespondentswereinmidtosenior
levelroleswithresponsibilityforareasincluding
digitalproductownership,customerloyalty,
customerexperienceandCRM.
Fromsportshopstosupermarkets,Europeanbanks
tofastfood,buscompaniestobroadband,the
needforincreasedcustomerretentionand
Aberdeen
moreaccuratedataoncustomerbehaviour
remainsthesame.
Edinburgh
Leeds
Chester
Amsterdam
Manchester
Utrecht
MiltonKeynes
Rotterdam
London
4WWW.APADMI.COMAPADMIDIGITALCUSTOMERLOYALTYREPORT2024
Investment
While67%ofthosesurveyedhaveadigitalloyalty
programmeeitherliveorbeingcreated,nearlyathird
eitherdon‘thaveoneorarestillintheplanningstage.
Thatmeansbudgetlikelystillneedstobefound
andaccompaniedbyaclearbusinesscaseonthe
likelyreturn.
Haveyouinvestedinadigitalloyaltyprogramme?
42%
Yes,it’slive
25%
Yes,weare
developingone
15%
Notyet,
weplanto
createone
12%
No
6%
Yes,butweno
longeruseit
Eventhoughbusinessesknowloyaltyisimportant,noteveryonehasfullplansinplace.
APADMIDIGITALCUSTOMERLOYALTYREPORT2024WWW.APADMI.COM5
Olderoryounger?
Shouldyouraudiencefocusbenowornext?
Youwouldexpectdigitalloyaltyprogrammesto
naturallyskewtowardsamoretech-savvyyounger
demographic.
Thesweetspotseemstobethoseaged35-44,
closelyfollowedbytheGenerationZdigitalnatives
bornafter2000.Andit’sthecombinationofthese
groupsthatrepresentsthegreatestpotential,both
nowandinthefuture.
Withwhichagerangeisyourdigitalloyalty
programmemostpopular?
Age
18-24
25-34
35-44
45-54
55-64
Numberofresponses
However,there’sanimportant
sidenotewhichisnottooverlooktheover40s,as19%ofbrands
identifiedthoseagedfrom41-64asthegreatestfutureopportunity.
6WWW.APADMI.COMAPADMIDIGITALCUSTOMERLOYALTYREPORT2024
Withwhichagerangedoyouseethegreatestfuture
opportunityfordigitalloyaltyinyourbusiness?
18-24
65+
25-40
41-64
APADMIDIGITALCUSTOMERLOYALTYREPORT2024WWW.APADMI.COM7
Exclusiveoffers
40%
Tiered
rewards
37%
Exclusivepricing
37%
Instant
wins
20%
Scan&go
23%
Loyaltypoints
(earn&burn)
28%
Paid
membership
30%
Gamification/missions
36%
Traditionaltacticsand
morepersonalisation
It’snosurprisethatthetraditionalloyaltytacticsof
personalisation,exclusiveoffersandearningpoints
arethemainstaysofmostexistingprogrammes.
Butwhenitcomestowherethefuturefocusmight
be,theprioritiesarewidespread,includingtiered
rewards,paidmembershipsandgamification.
Theoverallwinnerispersonalisationwith48%of
brandshighlightingitastheareawherethey’dlike
tobedoingmore.
Whatloyaltytacticswouldbusinesses
liketousemoreofinthefuture?
Personalisedexperience
48%
8WWW.APADMI.COMAPADMIDIGITALCUSTOMERLOYALTYREPORT2024
Personalisationdoesn’tcomeeasy
50%
plantomaketheir
customerengagement
strategymorepersonalised
20%
believetheircurrent
personalisationiseither
prettybasicortheydon’t
doanybutplanto
Thepopularityofexploringareassuchasrewardingnon-commercialbehaviourandtheabilitytodonaterewardstocharity
demonstratearealdesiretocreatecustomervaluearoundpurposeandnotjustpurchases.
9
WWW.APADMI.COM
APADMIDIGITALCUSTOMERLOYALTYREPORT2024
agreeorstronglyagree
thattheirdigitalloyalty
programmehasdriven
newcustomeracquisition
Mobilisingloyalty
withapersonaltouch
Aloyaltyprogramme,howevergood,is
unlikelytobethemaindriverinbringing
newcustomerstoabrand,butitcan
definitelyhelp.
69%
Therealjobthoughislessaboutenticingpeoplethrough
thedoorandmoreaboutkeepingthemhappyonce
they’vecomein.Todothat,youneedtoknowwhothey
areandwhattheylike.
Whetheracustomerisorderingadailylattefromtheir
localcoffeeshop,orrenewingtheircarinsurancefrom
aglobalunderwriter,theirexpectationisthatyouknow
howmanysugarstheytakeandhowmanyyearsno
claimsbonustheyhave.
Thedata,functionalityandaccessaffordedbymobile
devices,makesthemverygoodattakingawaysome
ofthepainofpersonalisation.Appsareabletotapinto
theongoingtouchpointscustomershavecometorely
onforregular,hassle-freetasksandtransactions.
Andtherealgaugeofsuccessisnotjustholdingonto
customers,butkeepingthemactive.
10WWW.APADMI.COMAPADMIDIGITALCUSTOMERLOYALTYREPORT2024
Perhapscruciallythough,
35%believedthatcustomerswhoareapployaltymembersspendmorethanthose
whoaren’t.
Thetwomostpopularstatementsregarding
theroleplayedbymobileappsinloyaltywere...
Appscandeliveramore
personalisedexperience
It’sagreatwayofstaying
frontofmindbetweensales
35%
APADMIDIGITALCUSTOMERLOYALTYREPORT2024WWW.APADMI.COM11
Whatisyourviewofanapp,
whenitcomestoloyalty?
57%42%
42%
37%
35%
31%
28%
Candeliveramore
personalexperience
Tostayfrontofmind
betweensales
Acosteffectiveway
toreachcustomers
Themostresponsive
CRMchannel
Apployaltymembers
spendmore
Forhighfrequencypurchases
Todriveinstorefootfall
12WWW.APADMI.COMAPADMIDIGITALCUSTOMERLOYALTYREPORT2024
Increased
frequencyof
purchase
Improved
customer
behaviour
insight
Increasedbasketsize
Reduce
marketing
costs
Overcomingthebarriers
Thereareofcoursethingswhichcangetintheway.
Budgetisobviouslyabigone,buthavingaclear
strategyanddemonstratingROIaretheequal
biggest.Thepotentialtosolvebusinessproblems
makesastrongcaseforovercomingthesebarriers.
Extendinglifetimecustomer
valueisthebusinesschallengemostaretryingtosolvewith
theirdigitalloyaltyprogrammes,followedbyincreasedfrequencyofpurchase.
Whatbusinesschallengesareyoutryingto
solvewithadigitalloyaltyprogramme?
Extending
lifetime
customer
value
APADMIDIGITALCUSTOMERLOYALTYREPORT2024WWW.APADMI.COM13
Toendonapositive,investmenttoimproveloyaltyissettogoupwith87%ofbrandsexpectingspendondigitalcustomerloyaltytoincreaseorsignificantlyincreaseinthenext12months.
Unlockingloyaltypotential
87%
Loyaltyprogrammesareclearlybenefitingfromthe
efficienciesandeffectivenessaffordedbydigital
platforms.Theimpactthisishavingonbettercustomer
experiencesandimprovedretentionisgreattosee
withnumberslike69%ofbrandsseeingdigitalloyalty
programmesdriveacquisitionofnewcustomersanda
thirdexperiencingmorespendfromloyaltyappusers.
Whatismoresurprising,andjustasencouraging,is
thepotentialwhichisstillyettoberealised.Onein
fivebusinessesconsidertheirdigitalloyaltyofferingto
betoobasicoraren’tdoinganyatall.Addto
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