LONDON, March 21, 2021 /PRNewswire/ — 89% of businesses plan to invest in new customer engagement technologies and approaches to improve customer experiences in 2024, despite a turbulent year for customer engagement as brands struggle to retain their customers amid a spending crisis Customers had to struggle.
Customer loyalty marketing technologies will be an integral part of plans to retain and increase customer spending. 9 out of 10 companies plan to overhaul their existing customer loyalty programs within the next three years. Nearly half – 44% – said they are dissatisfied with their current loyalty program.
Two-thirds (65%) of companies want to transform their customer loyalty technology as part of their investment plans.
These numbers come from the Global Customer Loyalty Report 2024 the loyalty cloud platform Antavo, for which more than 600 senior employees were surveyed in relation to their company’s customer loyalty concept, more than 30.5 million customer interactions carried out on the platform in 2023 were analyzed and qualitative interviews were conducted with 50 experts. The report was created with additional support from VML (formerly Wunderman Thomspon), EPAM and frog / Capgemini.
Key findings include:
- 81% of companies said their customer loyalty programs helped them cope with rising inflation and other economic challenges in 2023.
- 60% of loyalty program owners have made significant changes to their programs in the last two years.
- 90% of companies with a customer loyalty program report a positive return on investment – the average ROI is 4.8 times greater than the investment.
Zsuzsa Kecsmar, co-founder and head of strategy at Antavo, said: “In recent years there has been a significant shift towards customer retention over new customer acquisition. The overwhelming majority of companies are therefore actively looking to move away from their old technology and move to a new platform that will allow them to strengthen their relationships with their existing customers.”
“It is a myth that customer loyalty programs are purely a cost center. Our report proves this: 9 out of 10 companies measured a positive return on capital. Even better, the average return on investment is 4.8x their investments. It’s worth focusing on the most loyal customers. So it’s not surprising that twice as many companies want to invest in customer loyalty instead of customer acquisition.”
“Around 81% of respondents said their loyalty programs helped them navigate rising inflation and economic worries in 2023. “It’s clear that investing in customer relationships through a refresh of customer engagement technology is a highly strategic move for 2024,” she added.
James Baker, head of strategy at VML, said: “This powerful research from Antavo shows that companies are increasingly recognizing the value of investing in customer retention over customer acquisition, as loyal customers are more likely to purchase again and recommend others to your business. This report highlights the need for loyalty programs to become a single, connected ecosystem for loyalty program users.”
“A renewed focus on customer loyalty requires investment in technology,” Zsuzsa added. The potential for hyper-personalized loyalty programs is enormous, with the number of members who redeem personalized rewards being 4.3 times higher than the number who don’t Redeem personalized rewards Nearly seven in 10 respondents (67%) said microtargeting – targeting small customer segments with tailored messaging, content and loyalty offers – delivers greater financial benefit than it costs.
“Given the rapidly changing technology landscape over the last 12 months, it is not surprising that so many companies are actively looking for ways to restructure and leverage their customer loyalty initiatives,” she added. “Collective investment in new technologies will peak in 2024 represent a significant economic event.”
The Antavo Global Customer Loyalty Report 2024 is now available.
Information about Antavo
Antavo is a loyalty cloud that provides best-in-class technology to manage experiential, paid and lifestyle customer loyalty programs online, in-store or on mobile.
Antavo’s API-centric no-code platform makes the loyalty program fully customizable, enabling loyalty and marketing teams to run their program in-house and without IT support. The company invests 60% of its revenue in product development and releases new products quarterly.
Antavo is a customer engagement technology provider recognized by Forrester, Gartner and Loyalty360 and is preferred by customer engagement consultants, agencies and systems integrators around the world. Antavo supports customers such as KFC, La Cage, Kathmandu, Luisaviaroma and BrewDog, as well as global companies in the travel, pharmaceutical and fashion industries. For more information, see antavo.com. supports customers such as KFC, La Cage, Kathmandu, Luisaviaroma and BrewDog as well as global companies in the travel, pharmaceutical and fashion industries. For more information, visit antavo.com.
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2024-01-26 08:08:44
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