New Report Signals Wave of Online and Offline Customer Loyalty Innovations

  • The report, which gathered data from 25 million member actions and more than 300 organizations, was developed by loyalty technology provider, Antavo
  • 71.6% of companies with an existing loyalty program are now planning an overhaul in the near term
  • A seamless omnichannel experience, personalized rewards, and loyalty-enhanced data collection will be the most important features

December 8, 2021, LONDON, UK: Antavothe loyalty technology provider today launched a new report on the state of the loyalty program market.

The report highlights the vital role that customer loyalty programs have played throughout the Covid-19 crisis, and how the pandemic-induced acceleration of e-commerce looks set to usher in a wave of innovation in brand loyalty over the next three years.

According to Global Customer Loyalty Report 2022, more than six in ten companies (62%) say their loyalty program has helped keep customers engaged during Covid-19, with the effect most pronounced for brands running multi-tiered programs. Program members who were at a higher tier also had a 30% higher purchase frequency during the global crisis, compared to members at a lower tier.

“During the pandemic, brands running loyalty programs have always found it easier to keep their audiences engaged, especially when it comes to their most valuable customers,” said Attila Kecsmar, CEO and co-founder of Antavo. “While the global crisis has certainly dampened the purchasing power of many customers, what we have observed is that those who were halfway through their journey to a higher level of loyalty, or who were sitting on unspent points, were much less likely to abandon these favorite brands.”

The report also found that the need to provide a more seamless online and offline experience is driving more businesses to redesign their existing loyalty programs. While 61% of brands have invested in developing their loyalty strategy during the pandemic, more than two-thirds (72%) of respondents now expect another overhaul within the next three years.

Maciej Kroenke, Partner at PwC, said: “The Covid-related market turmoil has brought even more attention to the topic of customer retention. Traditional retailers, as well as a number of e-commerce retailers, have focused their activities on better understanding and localizing customers.

In the future, loyalty programs are expected to play an even bigger role in marketing activities. In particular, the improvement of mobile applications has opened up a new channel of communication with customers. As traditional linear media becomes less relevant, loyalty programs supported by engaging apps seem to be the most effective channel to reach younger generations, especially in big cities.

Projected to grow to $15.5 billion by 2025, the loyalty market is shifting from a purely transaction-based model to a more personalized and emotionally engaged model that focuses on long-term customer engagement and satisfaction. clients. In fact, the report found that 77.3% of companies that have a loyalty program that doesn’t reward member behavior outside of the purchase cycle plan to change that within the next three years.

Planet BrewDog is craft beer brewer BrewDog’s loyalty program, which uses Antavo’s technology to reward customers. The company is increasingly focusing on the community aspect of customer engagement, instead of rewarding purely transactional behavior.

Alice de Wend Fenton, Head of CRM and Loyalty at BrewDog, said: “The main thing that makes our program unique is the connection to one of our key brand pillars: sustainability. Members earn rewards when they offset CO2 and we also have a counter to show how many grams of carbon our community has offset. We’re proud that Planet BrewDog isn’t completely transactional and we’re working towards something that’s good for the planet.

Regarding future plans, we want to develop the community aspect. Whether it’s increasing the weighting of the gamification element or having more interactive content, we want to evolve Planet BrewDog into something a little more fun and playful.

Antavo’s report compiles data from 25 million loyalty program member actions and more than 300 companies, and aims to support program development and decision-making for brands and businesses across a range of sectors, from fashion to food and beverage.

About Antavo

Antavo is a pure loyalty technology provider that builds comprehensive loyalty programs to drive brand love and change customer behavior for brands, retailers and shopping malls. With a scalable and holistic loyalty logic, Antavo energizes the marketing strategy of omnichannel and e-commerce businesses, and delivers a next-level shopping experience with best-in-class in-store capabilities. Antavo was listed as a Representative Vendor in Gartner’s 2020 Market Guide for Loyalty Management and was included in Now Tech: Loyalty Marketing Q4 2020 and Now Tech: Promotions And Offer Management Providers, Q3 2021 reports. Forester. As a global company, Antavo empowers clients such as BMW, Lagardère, The Benetton Group, Jimmy Jazz, Telarus, Luisaviaroma, The N Brown Group and BrewDog. For more information, visit antavo.com.

Joseph P. Harris