Thoughts 23.04.13

Loyalty: The currency that should pay both ways

It’s no secret that for brands, trust and loyalty from their customers are some of the most sought after and valuable properties. Dependent on the nature of the brand, tens of thousands of pounds worth of revenue stands to be made from just one customer alone during a lifetime (think supermarkets, insurance companies, banks). Despite this, the importance of a reciprocating sense of loyalty from the brand to the customer is rarely mentioned.

However, in a new survey from the marketing consultancy Analytic Partners (which you can read about over at Warc) 48% of 18-44 year olds thought that any loyalty they felt towards brands in the future would have to stem from the types of experiences brands created for them. The survey includes a number of interesting insights but perhaps the bigger discussion here is how brands can improve on rewarding loyalty with their own version of it. Whether that be exclusive experiences, tailored content, or something as simple as the good old loyalty card, consumers are increasingly expecting brands to reward their loyalty with some form of added value. In a world where switching alliances from one brand to another is no longer a great inconvenience – largely thanks to the boom in price comparison and review sites – those brands that learn to trade in loyalty with their consumers will undoubtedly rise to the top.