Beyond the points: The next generationof customer loyalty

Use data to be responsive today.Big data and analytics empower companies to listen,

understand and respond to consumers across a wide range of channels. Acting on those insights earns the engagement and

loyalty of the next generation of consumers.

To fully connect with the world’s1.8 billion millennials

loyalty marketers need powerful data capabilities that pull actionable tactics from every step of the customer journey. For the 80 million millennials in the US, for instance, this means tapping

into multiple sources, from social media listening to in-house customer data.

Millennial consumers are primed for loyalty

FORYOU

48% expect brands tocustomise offers

38%OFF

38%will go out oftheir way to use a customised offervs. 32% for otherage groups

59%more likely thanany other age groupto share details of recent purchases on social media

62%tend to buy only preferred brands vs. 54% of the wider population

Lower prices

Privacy/data security

Product/service quality

Single point of contactfor issue resolution

Speed of issue resolution Speed of issue resolution

ALL OTHERDEMOGRAPHIC GROUPS

Celebrity endorsements

Supporting causes

Personalisation

Innovative experiences

Exclusive offers andpartnerships

MILLENNIALS vs.

To seize that opportunity for the next generationof consumers—millennials—marketers must use data and analyticsto craft seamless, highly personalised programmes that respond to

today’s evolving drivers of loyalty.

Key drivers of loyalty for:

Marketers are clearly missing an opportunityto better serve this installed base of loyal customers.

of programme leavers cite time it takes toaccrue points

70%

of loyalty programme members don’t know their benefits or how/when they recieve rewards

81%

$$$$$$

$$$$$$

$$$$$$

$$$$$$

of accumulated points, worth $50 billion,are never reclaimed

Over 50% $

Loyalty programme membershipsper US household19-29Actively used programmes5-12

decrease in active use of loyalty programmeseach year since 2010

2-3%

But at the same time,actual use of loyalty programmes is declining:

The current state of play:Enrolment in loyalty programmes is at an all-time high.

A study by Accenture found 77% of US consumers participating in a retail loyalty programmes (2017), up from 72% a year ago (2016)

For US households:

Total customer loyalty memberships

3.3 billion

Membershipsper household

29

Companies must earn customers’ loyaltyby demonstrating they deeply understand them—and that takes data.

Produced by (E) BrandConnect, a commercial division of The Economist Group, which operates separately from the editorial staffs of The Economist and The Economist Intelligence Unit. Neither (E) BrandConnect nor its affiliates accept any responsibility or liability for reliance by any party on this content.

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