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Customer Loyalty in Retail: Retail Trends, Challenges and Benchmarks


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Accenture 2016 Customer Loyalty and Rewards Survey. How do you measure up?

Published in: Marketing

Customer Loyalty in Retail: Retail Trends, Challenges and Benchmarks

  1. 1. Retail Loyalty Is Big Business. How Do You Measure Up? Accenture 2016 Loyalty and Rewards Research Study: Retail Trends, Challenges, and Benchmarks
  2. 2. of all retailers’ customers are members of their loyalty program. 42% HOWEVER, of all loyalty program members ARE INACTIVE. 58% 1 1 The 2015 COLLOQUY Census Report U.S. retail loyalty programs continue to rise in ranks. Accenture research reveals
  3. 3. Loyalty program members generate 12-18% incremental revenue per year, compared with non-members.
  4. 4. Perception Vs. Reality: A Precarious Gap Has Emerged. Retailers think their loyalty programs are differentiated. Customers don’t agree.
  5. 5. 71%of retailers say their program is differentiated from the competitors. 33%of loyalty members shop at competitors.1 Vs. of shoppers say it’s easy to switch loyalty programs.2 44% 1 Loyalty and Licentiousness in Today’s Shopper Landscape by Kantar Retail 2 Bond Brand Loyalty 2015 Loyalty Report Accenture research reveals
  6. 6. 99%of retailers assert program performs at, or above, expectations. 71%of shoppers claim the loyalty program does NOT engender loyalty.1 of shoppers receive digital retailer offers for items they have not, and will not, buy.2 57% Accenture research reveals Vs. 1 Loyalty and Licentiousness in Today’s Shopper Landscape by Kantar Retail 2 Survey Analysis: Growing Customer Loyalty Through Digital Engagement by Gartner
  7. 7. Identifying Challenges. Realizing Growth. Challenges to loyalty growth span people, technology, strategy, and financial management.
  8. 8. technology 40% strategy 33% financial management 33% people/ talent 30% The greatest challenges to loyalty program growth:
  9. 9. Emerging Trends. Engaging Opportunities. Top trends put the focus on driving greater member engagement through more relevant, personal, and rewarding brand experiences.
  10. 10. Emerging trends align into three categories: digital enablement commerce customer experience
  11. 11. #1trendshaving the greatest positive financial impact on loyalty programs by retail segment are: Specialty Retail Big-Box / Department Drug / C-Store Personalization of offers and use of data. Improvements to the overall program and member experience. Mobile evolution of program features or mobile application.
  12. 12. Big Business. Bigger Investments. Within the organization, how can loyalty programs compete with other initiatives and investments to win a greater share?
  13. 13. Retailers plan to continue to make big investments in loyalty next year. expect to secure a larger marketing budget.72% expect to secure a larger technology budget.65% cite lack of technology as a key challenge to growth.40%
  14. 14. Specialty Retail Big-Box / Department Drug / C-Store 52% Marketing 48% Technology 30% Ops/Service 61% Marketing 41% Technology 34% Strategy 56% Technology 44% Marketing 31% Strategy 1 2 3 Top three areas of greatest investments by retail category.
  15. 15. Less than half (43%) of retailers surveyed said their programs receive strong C-Suite support.
  16. 16. When asked to identify success metrics for their loyalty program, only one-third (32%) of retailers surveyed cited cost per member, and only one-in-five (19%) cited program ROI. 
  17. 17. Next Steps: Our goal is to help retailers evaluate whether their current loyalty strategies, investments, and programs are performing up to their potential (compared to their competitive retail segment set), and discuss alternative ideas, approaches, and potential opportunities. For more information on the results of our study, and to start a conversation about loyalty program transformation, please contact: Farrell Hudzik Global Managing Director Allison Cripps North America Practice Lead
  18. 18. About the study: 2016 Loyalty & Rewards Research Study: Retail Trends, Challenges, and Benchmarks Accenture recently surveyed 107 retail loyalty leaders across specialty, department/big-box, and drug/convenience-stores to determine key issues driving current retail loyalty success. Respondents held primary accountability for loyalty efforts within major organizations. Across all segments, our research indicates today’s most- successful programs extend well beyond the marketing team to permeate the entire retail organization.