A concise analysis of leading retailer's performance on: omni-channel customer loyalty, tracking, alignment of offers, multi-tier rewards, social media, analytics, mobile loyalty, location based messaging
Aberdeen Retail Customer Loyalty Analysis - July 2012
July 2012 Customer Loyalty 2012: Enabling Technologies for Customer Engagement, Conversion, and RetentionIn order for a retailers customer loyalty program or initiative to attract, Analyst Insightconvert, and retain customers, a mix of process, knowledge management,performance, and organizational capabilities must be in place. These Aberdeen’s Insights provide thecapabilities allow organizations to execute on their loyalty strategy. analysts perspective on the research as drawn from anHowever, these capabilities are only the beginning of loyalty success; aggregated view of researchretailers also need enabling technologies to execute on the strategy. These surveys, interviews, andenablers must combine traditional loyalty technology and emerging data analysistechnologies for loyalty offer creation, delivery, and redemption. Accordingto the March 2011 Next Generation Customer Loyalty report, 24% of retailrespondents currently use a centralized, cross-channel customer loyaltyplatform, and an additional 62% plan to implement this technology in thenext 12-18 months.This Analyst Insight will examine the key technology components of acustomer loyalty program, as well as the importance of integrating loyaltyelements into a centralized loyalty platform. The report will show howleading organizations put technology at the forefront of their loyaltyinitiatives, and the impact of these technologies on customer satisfaction,retention, and re-activation.Omni-Channel Customer LoyaltyLoyalty technology is a key component in the omni-channel customer Omni-Channel Leadersexperience. According to the January 2012 Omni-Channel Retail Experience Definitionreport, 66% of Leaders (see sidebar for definition) believe attractive Aberdeen used three keycustomer loyalty offers are a top component of their omni-channel strategy. performance criteria toConsumers also expect loyalty offers to be consistent across all channels of distinguish Leaders (top 30% ofoperation, from an offer creation, delivery, and redemption standpoint. performers) from Followers inAccording to 42% of survey respondents, a top omni-channel pressure is the January 2012 Omni-Channelthe consumer expectation of a similar experience regardless of channel. report:Inconsistent branding or disjointed offers can lead to consumer confusion Current Customer(about the brand or offer), disenchantment, and eventually, desertion. Satisfaction (CSAT): 95%Leaders have made the concerted effort to align loyalty and marketing offersacross channels to provide a seamless and fluid customer experience. The Current on-time order delivery: 98%next sections will detail how leading organizations offer a consistentexperience for improved customer retention, frequency, and re-activation. Year-over-year increase in revenue: 19%Customer Loyalty CapabilitiesTo execute an effective customer loyalty program, retailers must develop afoundation of business process, organizational, knowledge, and performanceThis document is the result of primary research performed by Aberdeen Group. Aberdeen Groups methodologies provide for objective fact-based research andrepresent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc.and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.