Infographic: The Problem With Customer Loyalty

In Featured on App, Loyalty & CRM by Vaughn Highfield

The Problem with customer loyalty featured

Customer loyalty is dying out and nobody is addressing the problem

We’ve spoken a lot about customer loyalty of late, how loyalty schemes need to be changed, and how gamification can be a great tool for engagement. But one thing I’ve not really addressed is how poor loyalty cards actually are from a customer’s perspective.

For retailers they’re excellent. High volumes of incredibly valuable data for little to no sacrifice in cost. It used to be blissfully simple to get away with too. So many customers loved the idea of getting points they can save up for and get money off their shopping.

However, a new generation of shoppers has arisen. A generation that’s far more clued up on how businesses work and how technology impacts their life. Because of this, many don’t see the point in owning a loyalty card because, quite honestly, the return is crap. Why spend hundreds just to save £5 or so on a shop? In most cases, they’ll probably never even use that £5 off because it comes as a paper coupon in the post or needs to be printed off to be used. It’s unintuitive and cumbersome, and largely useless.

Still, there are schemes out there that do have tangible benefits. MyWaitrose and MyJohn Lewis schemes seek to reward customers instantly with something they could want right away, or with something that may entice them into the store for a short while (i.e. free coffee and cake). GAME has a great system that keeps customers involved by presenting them with badges that also give points that translate directly into money off in store within seconds; there isn’t even a card that needs to be used as it runs entirely on a mobile app. An app that can share achievements with others and rank you against your friends. It’s a glimpse of how loyalty schemes could work in the future.

In this infographic Total Customer presents you with the facts about customer engagement levels with loyalty schemes (clue: it’s declining), provides a look at what popular schemes offer in terms of points for money, and lays out a few other titbits around customer loyalty.

Customer Loyalty