Merkle, a leading technology-enabled, data-driven performance marketing agency, has released its 2020 Loyalty Barometer Report. Merkle’s Human Loyalty solutions, including digital promotions, gamification, engagement hubs, and loyalty programs, are designed to create enduring brand-consumer relationships and serve as a source of customer insight needed to fuel personalized brand experiences. This third annual report analyzes how consumers feel about loyalty and rewards programs with insights on how marketers can improve marketing strategies and align them with consumer preferences and individual need states. Merkle will host a complimentary webinar on Thursday, March 12 at 2:00 p.m. ET, where authors Gina Fleck and Tristen Kendall-Barros will discuss key findings from the report and provide attendees with valuable insights into the loyalty marketing landscape.
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“Consumer behavior and consumption are shifting at an unprecedented pace. We’re in the new loyalty economy where loyalty leaders grow revenue two and a half times faster than industry peers”
The 2020 report features original research into loyalty program structures and the importance of building emotional relationships with consumers. The study found that, although discounts and free products remain the top reasons to join a rewards program, engagement and recognition-focused elements are required to maintain and strengthen that connection. Additionally, deeper loyalty can be achieved when brands know and engage their consumers, as 41 percent of consumers indicate that the most important way a brand can interact with them is by saying “Thank You” for being a customer.
The report also concludes that consumers are interested in deepening their engagement with brands outside of earning rewards, highlighting that 33 percent would like to be able to unlock additional features to find the right product. Integrating different engagement mechanics into a loyalty program can further enhance the customer experience and provide new benefits outside of traditional rewards.
“Consumer behavior and consumption are shifting at an unprecedented pace. We’re in the new loyalty economy where loyalty leaders grow revenue two and a half times faster than industry peers,” said Chris Wayman, executive vice president and general manager, Promotion & Loyalty Solutions at Merkle. “Effective loyalty leaders are in relentless pursuit of deepening customer relationships through personalized experiences, rewards, and recognition that anticipate and address the individual needs of consumers. Our 2020 report reveals how consumer mindsets are shifting, looking ahead to how loyalty programs should evolve so that brands can ensure their strategies are not only current, but also remain relevant and impactful into the future.”
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