Our understanding of customer relationships has undergone a remarkable transformation in recent years. Faced with the lasting impact caused by the Covid-19 pandemic and the imminent threat of an economic recession, we are now reevaluating the concept of brand loyalty and exploring new ways to achieve it. To assess the state of the industry, we can rely on reports like The Forrester Wave: Loyalty Technology Solutions, Q1 2023 – an overview of the most important loyalty software providers on the market. While the primary goal of Forrester’s study was to help buyers make informed decisions about technology purchases, it also provides valuable insights into today’s loyalty landscape. Ready to explore more?
Economic stability significantly affects customer behavior, and recent years have not made it easy for them. Due to the pandemic and rising inflation, people are becoming more careful with their spending habits. In accordance with Forrester’s July 2022 Retail Pulse and Consumer Power Index Survey Most Adults Online in US (64%), UK (59%) and France (55%) are concerned about the possibility of a recession, and they are looking for new ways to save money.
Hence the growing importance of discounts. Always efficient in attracting new customers, right now promotions are even more crucial to attract a new crowd, but they need to be thought out and distributed intelligently.
What means?
First, companies should focus on offering discounts to customers who really “deserve it,” such as those who stay loyal to their brands i engage in long-term business with them, since they are the ones to invest in. In addition, it is necessary to offer discounts appropriately to the profile of each customer. By using AI for data analysis at the single customer level and recommendation engines to create individual discount promotions based on their needs, price sensitivity and value to the business, you can eliminate the so-called “cherry pickers” and invest in loyal customers. At the same time, effectively allocating your promotional budget to customers with the most significant ROI can help you protect your margins and brand profits.
The financial upheaval is one of the many challenges facing the marketing world. With a cookie-free future ever closer (Google plans to stop use third-party cookies in Chrome at the end of 2024), marketers are now trying to figure out the most efficient way to collect customer data. Considering how much digital marketing relies on information gleaned from cookie tracking to identify customers and target them with personalized offers, this newly discovered reality can pose a serious threat to advertisers.
How to deal with it?
Once again, the answer lies in customer loyalty. Building strong relationships with customers inspires the trust necessary for people to share information about themselves. And since as much as 92% of customers say they will trade their personal data for loyalty pointscreating compelling loyalty programs is the key to getting the most reliable zero-party data, which can then be used to optimize marketing activities.
In addition, marketers can now rely on cutting-edge AI tools that efficiently analyze information from the customers they have acquired. These advanced solutions streamline data management and provide predictive capabilities, driving marketing efforts to new heights. By leveraging these tools, companies can tap into the wealth of accumulated knowledge and access nearly limitless resources. Gone are the days of ignored data, as we now have the means to effectively analyze information and generate personalized content simultaneously.
But none of this can happen without the trust and loyalty required to gather this information in the first place.
The reality of the metaverse may be the greatest of all the challenges and trends surrounding customer loyalty. A vague sleep concept that took the world by storm 2021, when Mark Zuckerberg decided to rebrand Facebook to Meta, is now on its way to revolutionizing all web-based activities as we know them..
But what does metaverse really mean? Well, that depends on who you ask.
Definitions of the metaverse vary from video game settings to virtual workplaces, but all consider online environments that offer digital experiences as an alternative to reality accessed via VR, AR, computers, game consoles or even smartphones.
The potential of this parallel virtual reality to what we see in the real world is very great; it’s no surprise that key players have already jumped at the chance to take advantage of it. From Zuckerberg’s GoalThrough Microsoft i apple, a Fortnite i Roblox, there are many iterations of a metaverse at work. Different in purpose, scope of functionality, required technology and values, these platforms fight for supremacy in the market. But to achieve this, they need to attract long-term users.
And that cannot happen without loyalty.
Loyalty is crucial to building trust and creating value that will make members share all the necessary data in the metaverse, the importance of which cannot be overestimated. It is believed that information obtained directly from customers becomes the main currency of the main metaverse trade. Because? Because zero-party data will be essential to design a space adapted to the wishes, needs, interests and preferences of users, ultimately determining its success or failure.
But the relationship between loyalty and metaverse is a two-way street. As much as loyalty benefits the metaverse, a metaverse can also help loyalty. With the rise of digital ownership, blockchain and NFTs, loyalty programs are already harnessing the potential of the metaverse. For example, brands like Balenciaga i Adidas have been investing in digital products that are increasingly popular among the younger generation of consumers. The Obsessar study – “The Metaverse Mindset: Consumer Shopping Insights” – showed that almost 75% of Gen-Z shoppers have purchased a digital item within a video game. Up to 60% believe brands should sell their products in the metaverse platforms.
The research found that the majority of participants perceived the virtual shopping experience as highly engaging, personalized and immersive, all factors that contribute to increased customer loyalty. And as the value of the metaverse in e-commerce is growing, marketers must adapt their strategies to explore the options this new reality presents. Otherwise, they may miss countless opportunities to create a compelling experience that takes customer engagement to a new level.
Customer loyalty can grow in several directions, which can be difficult to predict. We can safely assume that AI and the metaverse will play a crucial role in shaping the future of marketing. However, given the acceleration of development in these areas, it is difficult to be sure of their full impact.
There is still a lot of uncertainty around the topic: the only thing that is clear is that brands must remain open to new solutions and be ready to incorporate them into the following promotional activities. The Forrester Wave: Loyalty Technology Solutions, Q1 2023The report shows who has the best opportunity to stay abreast of these dynamic changes. Recognized as one of top 5 top loyalty vendors in the market, Comarch is proud to be among the companies that find their way in the new reality and offer the right tools for modern loyalty challenges.
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