February 14, 2017

Organizations Wasting Billions on Customer Loyalty Programs That Don’t Work Like They Used To, Accenture Strategy Study Finds



Accenture Strategy unveils the new ‘languages of loyalty’ driving customer relationships in the digital age


NEW YORK; Feb. 14, 2017 – Organizations are wasting billions of dollars each year on customer loyalty programs that don’t work like they used to, according to new research from Accenture Strategy. With millions of loyalty points sitting dormant and the majority of U.S. consumers (78 percent) retracting loyalty at profit-crushing rates, organizations must pay attention to the new factors driving customer loyalty in the digital age or risk losing customers for good.

The Accenture Strategy report, Seeing beyond the loyalty illusion: it’s time you invest more wisely, gauges the experiences and attitudes of 25,426 consumers around the world, including 2,532 U.S. consumers, about their loyalty relationship with brands and organizations today. The report found that 54 percent of U.S. consumers have switched provider in the past year, and almost one fifth (18 percent) confirm their expectations around brand loyalty have completely changed. The report also identified five new factors influencing loyalty today.

Orgs. are wasting billions on customer loyalty programs that don’t work. It’s time to pay attention to the new factors driving loyalty #GCPR



“New ‘languages of loyalty’ have emerged, driven by brands experimenting with creative digital experiences, which have changed the dynamics of customer loyalty today,” said Robert Wollan, senior managing director, global lead of Advanced Customer Strategy at Accenture Strategy. “Every consumer has a natural instinct around what makes them ‘stick’ to a brand. The traditional ‘low price’ and ‘reliable service’ mechanics are no longer as effective at driving loyalty. With 66 percent of U.S. consumers spending more with the brands they love, organizations that stick to traditional approaches and don’t explore the new drivers influencing loyalty risk draining profitability and pushing customers away – even when they have the best intentions or are following their historical playbook. It’s time for organizations to take a fresh look at loyalty.”

The new languages of loyalty
Accenture Strategy has identified five languages of loyalty which are driving customer relationships in the digital age, particularly among U.S. millennials:


“Organizations need to understand the loyalty languages of their most profitable customers and implement the optimal mix to ensure they’re delivering the experiences that drive advocacy, retention and growth,” said Kevin Quiring, managing director, Advanced Customer Strategy, Accenture Strategy. “An appetite for extra-ordinary, multi-sensory experiences, hyper-personalization and co-creation, are changing consumer dynamics around loyalty and forcing brands and organizations to shift their approaches and programs.”

Additional U.S. consumer findings from the report include:

Fight for loyalty:

How consumers express loyalty:

For further information on Accenture Strategy’s Seeing beyond the loyalty illusion: it’s time you invest more wisely report, please visit: www.accenture.com/GCPRloyalty.

About the research
Accenture Strategy’s Seeing beyond the loyalty illusion: it’s time you invest more wisely report is based on the findings from its twelfth annual Global Consumer Pulse Research. The report gauges the experiences and attitudes of 25,426 consumers around the world about their loyalty relationship with brands and organizations today. The survey includes online responses from respondents in: Denmark, Finland, Sweden, UAE, Thailand, South Korea, Singapore, Norway, Mexico, Malaysia, Ireland, South Africa, Russia, Argentina, Turkey, Poland, Philippines, Netherlands, Belgium, Czech Republic, India, Indonesia, France, Germany, Japan, China, Brazil, Spain, Canada, Australia, Italy, United Kingdom and the United States. The survey was fielded in July and August 2016.

About Accenture
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 394,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

Accenture Strategy operates at the intersection of business and technology. We bring together our capabilities in business, technology, operations and function strategy to help our clients envision and execute industry-specific strategies that support enterprise wide transformation. Our focus on issues related to digital disruption, competitiveness, global operating models, talent and leadership help drive both efficiencies and growth. For more information, visit www.accenture.com/strategy.

# # #

Contact

Lucy Davies
Accenture
+ 44 777 3044 808
lucy.d.davies@accenture.com