Loyalty By the Numbers: Top 63 Customer Retention Statistics for 2022

by Tracy Chaplin |

Loyalty By the Numbers: Top 63 Customer Retention Statistics for 2022

Customer Loyalty Retention Strategies

Now is the time to reassess your business strategy and invest in your most important asset—your customers. Download our guide on Breaking Through Market Barriers: The Power of Customer Retention This guide is designed to give you insights on: Why your brand’s marketing budget and an effective loyalty program are more important than ever Provide … Read more

Your Guide to Selecting A Suitable Loyalty Partner

If you are in the market for a loyalty partner but don’t know how to go about your search, we are here for you. Loyalty programs are a hot topic now as businesses are looking to strengthen their ties with their customers and a good loyalty partner can help to achieve this and more. Here, … Read more

Answering The Most Frequently Asked Questions About Loyalty Business Models

In the business and marketing circuit, talks of brand and customer loyalty are a common occurrence. Decades after its inception, global brands are revisiting loyalty marketing, to renew their customer’s faith in the brand, especially after the market disruption caused by the 2020 pandemic. A loyalty business model can help a brand to reinstate its … Read more

An Overview of Loyalty in The Luxury Fashion Industry

After the relaxation of the first lockdown phase in 2020, the global fashion industry and especially the luxury fashion sector experienced the unexpected phenomenon of ‘revenge shopping’. Contrary to what marketing gurus and forecasting professionals predicted, the fashion industry experienced a massive boom. The phenomenon was not restricted to offline shopping. In fact, online shopping … Read more

10 Things No One Tells You About Loyalty Programs

The global lockdown was a great time for businesses to revisit their business approach and create strategies that offer more value to the customers in exchange for their time and money, this is one of the prime reasons why loyalty programs gained momentum in 2020. While there is a lot of information available online that … Read more

Scope of Referral Marketing Campaigns in 2021

Have you ever raved about a product or service to your friends and insisted they give it a try? You realize that you have been actively marketing that particular product, right? Now imagine, getting rewarded to do so! This is exactly what referral marketing is. Referral marketing campaigns basically reward customers for recommending their products … Read more

8 FAQs to Help You Understand Gaming Rewards Programs Better

In the loyalty arena, gamified loyalty and gaming rewards programs are the new buzzwords. While gamification has been around for decades, not everyone is familiar with the term and its significance in marketing and loyalty strategies. Here, we answer some frequently asked questions about gamified loyalty and help you understand the concept better. Q1. What … Read more

Rewards Program App – Cracking The Code To Customer Satisfaction

Rewards Program App

If you have taken your business online and do not have a rewards program app yet, you are not leveraging the full potential of the medium. Well, you could as easily and more efficiently launch and run a rewards program through an application as you did offline. Let’s look into why you need a rewards … Read more

The Interplay of Loyalty

There is a lot of talk lately around customer loyalty, how to be effective and ultimately successful. One aspect often missed is that loyalty is a two-way street. As marketers, we expect our customers to be loyal to us–but are we being loyal to our customers? This is a great read to help you think … Read more

Why Grocery Loyalty Programs are Need of the Hour?

A recent loyalty study states that 83% of consumers visit 4-9 different groceries in a year. Is brand loyalty non-existent in the grocery business? Or are you not giving your customers enough incentive to purchase from you? The latter is likely to be true in this case, because customers freely exhibit loyalty or favoritism towards … Read more

How User-Generated Content Empowers the e-Commerce Sphere

User-generated content plays an undeniable role when it comes to boosting revenue

User-generated content plays an undeniable role when it comes to boosting revenue for e-commerce brands. However, the way in which this rich content should be utilized also holds high importance. This blog post will develop an overview of user-generated content and how it helps e-commerce brands gain on different fronts. User-Generated Content Definition – An … Read more

Restaurant Loyalty: Turn Guests into Fans

Restaurant-Loyalty

When you think of restaurant loyalty, what comes to mind?

The card you’d carry in your wallet. You’d pull it out each time you bought a sub, waiting for the card to fill up, for the reward of a free lunch.

Probably not. Today some of the best loyalty programs are being run by restaurants.

When asked about “your” favorite loyalty program, the two that repeatedly make the top 5 are Starbucks and Chick-fil-A. Guests of these QSRs are huge fans of these brands.

What is it about these programs that make them stand out over all other programs in the market today? They practice the (new) KISSS –

Keep it,  Simple. Seamless. Satisfying.

Simple

Keeping it simple is far more difficult than it sounds. As marketers, we work to please a lot of people: our boss, the CFO, the CIO, CEO, our team members, and our guests. A few years back I was involved in an RFP for a QSR that had a remarkably complex loyalty program vision. The program had multiple steps to earning and burning, multiple values to the rewards, and a requirement to use the app only. The program spec was documented in over 100 pages. Thankfully, for the guests and the marketers, the program was never launched.

Simplicity is key to the success of a restaurant loyalty program. We’d like to think that our guests think about our brand all the time. The reality is that they will not take the time to read rules nor learn the ins and outs of program earnings. It’s just not going to happen. Especially when the potential value of that time spent is a brownie (even though they are delicious!).

Seamless

Over the last week, I’ve had the pleasure of meeting with analysts focused on customer experience. Each discussion narrowed to friction as one of the biggest challenges of delivering positive customer experiences. (Not to confuse friction with effort, as some effort is good – it creates a commitment between the brand and the customer.)  Making a guests’ loyalty experience with you seamless delights the guest. Not only do they come back more frequently, but they also become advocates for your restaurant.

Starbucks loyals love the seamless experience the Starbuck app awards them from ordering to payment to rewards and reward redemption. All are just a few clicks away.

Satisfying

Another area that becomes complex or challenging for marketers is creating a program that has a value that’s exciting to members. When actually, guests will be happy with the opportunity to get a better experience and a few perks along the way. If you actually look at the value of the Starbucks program (sorry Starbucks) the value isn’t really that great or valuable. It’s the fact that as a Starbucks guest, I’m recognized for my patronage. They recognize me and make me feel appreciated. Plus, as a bonus, I get a free coffee or meal along the way.  Satisfying!

To deliver on a KISSS strategy, you’ll want to incorporate the following:

  • Simple program structure. Create a structure that is easy for people to understand how to earn and redeem.  Also, ensure it’s easy for a guest to understand what they get if they increase their frequency and spend.
  • Seamless omnichannel experience. This is delivered by ensuring your loyalty technology is embedded as the heart of your tech stack. You’ll integrate with all data sources including but not limited to CRM, ecomm, mobile well as POS, and order systems. This will ensure that guest data is used the same way across all channels, including in restaurants.
  • Satisfying. Your program will have a core value proposition. You’ll be able to augment that with relevant messaging (based on the data collected). Plus you’ll be able to add in promotions or loyalty gamification to recognize and engage guests that will increase satisfaction.

Following a KISSS approach will ensure you build a program that will engage your guests and keep them coming back. Contact the experts at Annex Cloud for guidance as you build out your KISSS loyalty strategy.

Annex Cloud Continues to Transform to Exceed Client Needs. Learn about the Latest Developments to Loyalty Experience Manager.

Loyalty Experience

With the launch of Loyalty Experience Manager™, we are constantly adding enhancements to our solution to continue to exceed our clients’ needs and their customers’ expectations. Take a quick look at what’s new with the Loyalty Experience Manager.

  • RFM Dashboard V3: We have released the Recency Frequency Monetary value dashboard in V3.
  • Enhancement to Leaderboard suite of APIs: With this new API, we can show users regardless of what that is (can be outside of Top 10) and the relative position of that user with respect to the top 10 users, and also 5 users each above and below this user.
  • As part of our hierarchy management functionality, members can create their own groups: The admin of the group can send an invitation to other users for joining that group. Once those users click on the CTA button in that email and opt into the program, they will be automatically added to the group.
  • Ratings & Review Solicitation Email Engine Form Builder: Last quarter we released our RRSE Solicitation Email Engine. With the previous release, we made it very easy for anyone to set up a solicitation email based on templates for even non-technical users. The one thing that was still in there was the email template set up using CKEditor which still requires a little HTML knowledge. Now we have added a form builder that builds the email template by easy drag + drop functionality. So now anyone, including non-technical users can use this engine to set up multiple emails per site in just minutes, which also includes an easy setup process for In-Mail reviews functionality.
  • Social Comments APIs and SDKs: Last quarter we released our Social Comments REST APIs. In Q4, we added more data to existing APIs and also added new APIs in this module. This makes our functionality and API very data-heavy and clients can use them for various purposes on the front end. Also, with this additional information and APIs, our iOS and Android SDKs also become much stronger to easily handle large amounts of data. Both iOS and Android have varying requirements when it comes to dynamic data compared to static data.

Click on these links for full details on this release and the release prior.

Your opinion matters!  We are always looking for feedback from our platform users. Please do not hesitate to contact us to share your needs. We publish our release notes every two weeks and share summaries of releases at least once a quarter.

The New Look of Loyalty, Making Loyalty Easy for B2B & B2C Growth

loyalty strategy

For years, I’ve heard marketers tell me – “Loyalty is hard.” “Loyalty takes time”. “Loyalty is too expensive”. “Loyalty is too difficult to get approved by my CFO”.

For years, loyalty has been anything but “easy”. Now it can be. & Now it should be. Organizations need to be using loyalty concepts and loyalty technology in order to deliver on their personalization and growth goals.

How can loyalty be easy?

2 reasons:

  1. Loyalty technology is finally being built in a modularized extensible way providing users extreme flexibility of features in a nimble environment supported by existing integrations with the technologies in your tech stack.
  2. Loyalty initiatives can be as easy as a simple commitment to a value exchange. The modularized way the technology is built, organizations are no longer forced into programmatic loyalty with points, tiers, etc.

Why now?

Now, because the world is changing and organizations need loyalty. They need loyalty for two reasons 1) to keep customers during economic uncertainty and 2) to collect and use customer data.  The changes in the privacy laws mean less dependence on 3rd party data creating an increased demand for zero and first-party data.

Loyalty is the fastest and most effective path to both.

The New Look of Loyalty

Consider your loyalty strategy as a build.

Start with a simple value exchange:
The foundation of a loyalty strategy is a committed value exchange.

  • You commit to your customer to being a good steward of their data and deliver relevant personalized experiences.
  • In exchange, they give you their data and they promise to identify themselves at all touchpoints.
  • With this joint commitment, you are able to collect the information necessary to understand the customer and deliver hyper-personalized relevant experiences.

Next, as you learn about your customer base, learn what’s important, learn what motivates you can add more loyalty tactics.

Consider adding engagement strategies. Have customers write reviews. Have customers share their experiences on social. Add in a game, rewarding customers who do these activities.

Now that you’re engaging customers you can add in motivators for more and larger transactions. This is where developing tiers and/or point features come in. These tactics are proven in driving new and additional behaviors.  Setting tiers, that are higher than where various segments are spending, will entice people to spend more to reach the new tier in order to unlock new benefits, experiences, or offers.

Taking a building up approach to a loyalty strategy, allows you to:

  • Include your entire customer base in the strategy
  • Strategically and surgically add benefits and rewards to customer segments most deserved of these benefits.
  • To learn as you go and not overcommit at the beginning.

Annex Cloud has the experts and the technology to support loyalty your way. We’re here to advise and lead you to the loyalty initiative that best fits your organization, goals, and customers whether your organization sells B2B or B2C.

3 Customer Loyalty Predictions for 2022

Customer Loyalty Predictions
  1. Priority shift within organizations
    There are many changing forces in the world today. Across the globe, people are changing behaviors. Many are being more astute when it comes to being financially responsible. Many are focusing on doing good for others and the planet.  These new mindsets are changing the way people make purchase decisions. These mindsets apply to both, us as individuals and us as employees, making decisions on behalf of our organizations.
    All organizations need to understand these changing behaviors and these changing priorities. People purchasing our products are mindful of what organizations are doing proactively to support people, causes, charities, and our world. People want to see the organizations they’re doing business with supporting the same causes they are. They want an organization to be empathic to their needs and what is important to them. They want organizations to walk with them; even more, they want them to walk in their shoes.
    Throughout 2022 and beyond, organizations need to consciously articulate to customers and would-be customers about their position and what they’re doing to support the people and the world we live in.
  2. Increased adoption of loyalty by both B2B and B2C organizations
    Recessionary times and times of general economic uncertainty, time and time again we’ve seen organizations shift the spend and focus from acquisition to retention efforts. For many reasons, this is a proven approach to maintaining and growing business during turbulent times. The two major reasons 1) when customers have limited resources, they are more thoughtful and cautious about how and where they spend.  This is true for individuals as well as organizations. Organizations will limit and/or shift spend to what’s most imperative to at least sustain until they can better predict the future. 2) With recessions hitting about every 10 years, we have enough data to show that organizations who focused on existing customers, recognizing them, and improving their experiences have fared far better than those organizations who either continued to focus on acquisition, cut costs, and/or slowed customer communications.
    Adopting or enhancing existing loyalty strategies during uncertain times has proven successful. As Bain & Co has found, a 5% increase in customer retention can equate to 75%+ in increased profitability.
  3. Wide use of loyalty technology
    Loyalty technology is going to become mainstream. In 2022 we will see significant movement in this direction. To start, loyalty technology will no longer be a silo off to the side of an organizations’ tech stack. It will now be embedded, sharing much needed zero and first-party data across all organizational functions.
    Ecomm, CRM, Call centers all of these technologies, and the experiences they deliver are significantly enhanced when organizations pull in loyalty data. This data and the insights that can be gleaned from the data is the key to delivering hyper-personalized relevant communications and experiences. Whether you are selling B2C or B2B, your customer expects you to know who they are, what’s important to them, what they’ve purchased before, and make offers or share content is that relevant based on all of this information they’ve shared. Loyalty initiatives and technology will get you there fast.
    In addition to becoming the heart of the Marcom tech stack, loyalty initiatives will look different in 2022 and beyond.  These initiatives will begin with a value exchange commitment. Commitment to share data, protect data and use data in a way that enhances “my” customer experience. You’ll see loyalty initiatives with the data exchange at the core, without a commitment to points or tiers or discounts. We don’t see loyalty programs going away, but we do see the strategies being extended to a more simple form to start. Adding in additional benefits over time, as the needs of an organization dictate.
    If you’re considering loyalty for your B2B or B2C organization, the team at Annex Cloud can help steer you as you develop your roadmap. The Annex Cloud Loyalty Experience Manager™ is a built-in module, allowing organizations to start with the value exchange and grow into more sophisticated initiatives. Additionally, with over 100 integrations and partnerships, the Annex Cloud solution can be easily embedded and connected to your entire tech stack.  Contact us to learn more today.
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