Marketers spend upwards of $2 billion per year on customer loyalty programs. But even with significant investments, many brands are still unsure how to activate their loyalists to drive real business results.
According to a new survey from the Chief Marketing Officer Council, only one in ten marketers (13%) believe that they have been highly successful in garnering loyalty and brand preference among members of their loyalty clubs. Nearly 20% of companies say they haven’t developed tactics to fully leverage their top customers — evident by the 50% of club members who say they only occasionally talk about the brand or product.
Brand loyalty initiatives can make important consumers feel appreciated, but they should also foster closer connections between brands and fans that spark word of mouth.
Consumers may be ready to do more, so long as companies they do business with are willing to sweeten the deal. Nearly 60% of consumers say they want more compelling personal benefits and services, as well as more relevant offers or individualized deals.
Until then, marketers may continue to see lackluster returns from programs with the promise to deliver so much more.
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