Many customer loyalty programmes do not work in Singapore like they used to, according to a newly released study from Accenture Strategy.
Organisations should stop wasting billions each year on customer loyalty programmes that do not work and pay attention to the new factors driving customer loyalty in the digital age.
This has become imperative as millions of loyalty points are sitting dormant, and 80 percent of Singapore consumers are retracting loyalty at profit-crushing rates.
Nearly two-thirds (62 percent) of Singapore consumers have switched provider in the past year, and 24 percent have confirmed that their expectations around brand loyalty have completely changed.
"With 64 percent of Singapore consumers spending more with the brands they love, organisations 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," said Alison Kennedy, managing director, ASEAN at Accenture Strategy. "It's time for organisations to take a fresh look at loyalty."
Five languages of loyalty
Two-thirds (66 percent) of Singapore consumers feel loyal to brands that present them with small tokens of affection, such as personalised discounts, gift cards and special offers to reward their loyalty.
Half of Singapore consumers are loyal to brands that offer them the opportunity to personalise products to create something that is bespoke to them.
Forty-eight percent of Singapore consumers are loyal to brands that actively engage them to help design or co-create products or services.
Twenty-eight percent of Singapore consumers are loyal to brands that partner with celebrities, and 53 percent of Singapore consumers feel loyal to brands that connect them with other providers.
"Organisations 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," added Kennedy.
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