Breaking Loyalty Fatigue In The FMCG Sector

by Natasha Ambavle |

The customer demands in the fast-moving consumer goods sector are constantly fluctuating while the competition is always on the rise. With a vast variety of products to choose from, retaining customers has become challenging.

A loyalty program can add value to the customer’s experience with your brand. It incentivizes their association and encourages them to repeat their purchases and eventually develops brand loyalty.

However, while designing a loyalty program for a dynamic sector such as the FMCG industry, you might face some challenges. In this article, we explore the challenges you might face and ways to keep your customers engaged with your programs.

Common Hindrances CPG Brands Face with Their Loyalty Programs

  • Loyalty Fatigue – One of the major challenges, FMCG or CPG brands face is loyalty fatigue. Loyalty fatigue is caused when customers view the rewards program as a pointless and useless activity. It is also caused when earning points or rewards is a complicated or tedious process. Moreover, during the redemption of points, customers are deeply unsatisfied with their rewards. In the highly competitive market, it is imperative to keep your customers engaged with your program. A simple, uncomplicated program has a high-efficiency rate. Also, a good winning/ earning streak can motivate customers to remain engaged and also refer it to their network of family, and friends.
  • Program Execution and Management – A rewards or loyalty program is a complex process and not every brand or company has the infrastructure or the resources to execute and manage it efficiently. Partnering with vendors or loyalty partners like Annex Cloud can not only ease the process but ensure high ROI and customer engagement rates.
  • Data Management and Analysis – A strategic advantage of a loyalty program is the priceless, first-party, and relevant data it gives access to. Your loyalty program can give you great insights into your customers, however, you need to have the necessary resources and bandwidth to extract and manage and analyze this information. Annex Cloud’s dynamic Loyalty Experience Platform can help you make the most of your customer data while adhering to global data protection and compliance practices.

Keeping The Customers Interested and Engaged

  • Adopt New Technologies – To keep up with your fast-paced customers and changing times you need to constantly monitor and upgrade your technologies. Not only do they make processes simpler and more efficient but have a strong mass appeal as well. Switching to omnichannel loyalty and experience, using geo-locations and offering a multi-channel loyalty experience can encourage participation and help keep the customers engaged. Going digital will increase customer-brand proximity, brand accessibility while keeping the brand relevant and considerably boosting brand recall value.
  • Make Winning/ Earning Easy – More often than not, customers lose interest in a loyalty program because earning enough points to redeem rewards seems like a distant dream. The tougher it is to accumulate points or win rewards the more disengaged the customers become. According to KPMG, 69% of customers say that loyalty programs are difficult to join and earning/ winning rewards isn’t easy. Make your loyalty program fun, easy, simple, accessible and most importantly use it as an opportunity to make customers happy. The central idea here is to improve customer satisfaction and encourage engagement, the more rewards customers earn the more interested they become, provided the rewards are meaningful and add value to their life.
  • Create an Emotional Connect – As per a survey conducted by Capgemini, only 15% of the customers think that brands make efforts to emotionally bond with them. Emotional connection is key to forming a lasting bond with your customers, it is also the first and the most important step in boosting customer loyalty. Empathizing with your customers in times of global or national crisis, being attentive to their requirements, intentional social listening and making efforts to connect with your audience that have a transformative effect on retention and even acquisition rate.
  • Personalized Rewards and Experience – With the new technological advancements, gauging the pulse of the audience and creating a personalized experience have never been easier. Carefully analyzing the customer’s journey, studying their purchase patterns and preferences through the data you have accumulated and offering an individualized experience can significantly boost engagement rate. Personalized rewards make customers feel appreciated and more importantly keeps them interested in the loyalty program for a prolonged period of time. Click here to read our insightful white paper on personalization in loyalty.
  • Communicate – At the cost of sounding redundant, we cannot place more emphasis on the power of communication. Even with omnichannel platforms and multichannel technology, communication is paramount. Routinely communicate with your audience, your communication could be informational, educational or entertaining in nature. Keep your customers in the know, of your every move and consistently remind them of the benefits they would leverage by participating in your loyalty or rewards program.
  • Focus on Building a Community – Multinational brands like Nike, Coca-Cola, NFL among many others focus their attention on building a community of their loyal customers. In the FMCG sector, the competition is extremely tough, there are a zillion brands that may offer better rewards or products, so in such circumstances, how to you retain your customers? The idea is simple, keep your customers happy and satisfied. If you offer good products at reasonable prices, keeping convenience in mind, while offering more value for your customer’s money through rewards and incentives and routinely showing appreciation, it helps to build a community of loyal customers which can take your brand to new heights and give it a competitive edge.

How can Annex Cloud Help You Amp Up Your Loyalty Game?

Scoring the highest possible ratings in 15 criteria in 2021 Forrester Wave, Annex Cloud has partnered with numerous FMCG brands to deliver custom loyalty solutions. The expert team at Annex Cloud tailors the program to suit your business standards and requirements and helps you create a dynamic program that excites and engages your customers. For a free consultation and demo, click

[White Paper]
[White Paper]