The Loyalty Minute

The Plenti Coalition Loyalty program launched and shuttered by American Express during the last three years had cost the company a sizable amount of money, but at least they learned from their mistake and made the adjustment.

Back in February, 2019 American Express and Rakuten announced a partnership which will allowed new users of the platform to earn American Express Membership Rewards points instead of cash back for affiliate link purchases. Now, as of October 31st, Rakuten is expanding that offer to all current members of its shopping ranks.

“We know our Card Members want more ways to earn more points with the brands they love,” says Chris Cracchiolo, Senior Vice President, Global Membership Rewards & Loyalty Benefits at American Express. “We are excited to expand our relationship with Rakuten to offer our shared customers and new customer segments more opportunities to earn Membership Rewards points than ever before.”

A recent survey from Morning Consult, which polled 2,202 US internet users, found that some consumers—particularly Gen Z and millennials—are not always ready to commit to just one product. More than half (51%) of 18- to 21-year-olds said they would like to try out different items, "even when I know there's one I like."  

Older respondents were less likely to be as adventurous. Roughly two-thirds (67%) of Gen Xers and more than three-quarters (75%) of boomers said that when they find a product they like, they to to buy it over and over again. 

To read more about the report, and other Loyalty Matters, visit http://theloyaltyminute.com

The New Topography of Retail also identified a new global expectation of service staff to be armed with more information than ever before. A majority of consumers (74 percent globally and in North America respectively) think knowledgeable in store staff are important to their brand experience. Consumers (57 percent globally and in North America respectively) also expect retailers to always know the reason for their returns. North American consumers have even greater expectations of retailers: 60 percent expect customer service teams to know the date of their original purchase and 57 percent expect teams to know the method of payment.

The State of Customer Loyalty in 2018 from a study conducted by yotpo (yacht po)

1. Why are you loyalty to a brand?  

A. 55% of consumers are brand loyal because they love the product, 25% say it's the deals, and 7% say it's the customer service.

2. How many repeat purchases does it take to build loyalty? 

A.37% of consumers say that it takes five or more purchases for them to consider themselves loyal to a brand.

3. Are loyal customers are worth the effort?

A. It is 6 times more cost effective to market to an existing customer than it is to go out and get a new one, so the answer is a resounding yes.

In the Travel Loyalty Report conducted by Expedia Affiliate Network and Points International, they uncovered a plethora of valuable data and insights in today's loyalty programs.

The data revealed in this Inmoment research uncovers the customer journey though their initial phase of engaging with a brand. The large majority of shoppers — 80 percent — said they “grew to love” a brand over time; the cumulative effect of great products, service, buying experiences, positive reviews and recommendations from others. Fifteen percent experienced “love at first sight,” and 7 percent committed after a glowing recommendation from a trusted source.

There is a 300% increase in the Life Time Value (LTV) of a customer who has an emotional connection to a brand.  The study also reveals the consumers with an emotion connection stay loyal to that brand for an additional 2.7 years, and will recommend that brand at a much higher rate (71% vs. 45%)