THE POWER OF PERSONALISED LOYALTY
Why Customer First remains the way to win
Looking at some headlines from recent months – and those from earlier periods of economic uncertainty – it would be easy to assume customer loyalty is in a state of freefall. Facing prolonged pressure on their wallets, why wouldn’t shoppers be starting to flock to those retailers offering the lowest possible prices?
The reality, happily, is very different. While we see hints of erosion, they are slight at best; most banners have maintained their base of loyal customers, and many have even managed to grow it. In both cases, we believe this is due to their adoption of true Customer First principles, of which we see ample evidence across the results of this study.
The most successful retailers right now are not chasing after the hype, or being distracted by what the rest of the market is said to be doing. Instead, they are investing in proven techniques that allow them to meet customer needs during an intensely challenging time. By zeroing in on strategies that deliver true value, they have built a stronger bond with shoppers when that relationship should be under greater strain than ever.
Does this mean that there’s no space for innovation in loyalty and personalisation? Not at all. New ideas, new applications, and new ways of working keep the industry moving forwards. At the same time, there is value in employing those things sparingly, and only where their impact on the customer experience can be measured.
Overall, the results of this study provide much to be optimistic about – and offer valuable lessons for any retailer looking to maximise the effectiveness of its own loyalty programme.
The most successful retailers right now are not chasing after the hype, or being distracted by what the rest of the market is said to be doing. Instead, they are investing in proven techniques that allow them to meet customer needs during an intensely challenging time.”
Methodology
This study is the result of an in-depth review of the loyalty practices of 24 major retailers from around the world. In spite of the limited sample size, many of the featured organisations are the largest grocery retail organisation in their country, ensuring that the comparisons made in this document present a viable summary of differing approaches to customer loyalty.
Additional insight was sourced from dunnhumby’s international client leads, providing anecdotal commentary on both the retailers that they work with and their markets in which they operate.
None of the results featured in this study should be taken as an indication of actual decisions made by any retailer, and are not intended to be a direct reflection on any one of dunnhumby’s clients in isolation. Analysis took place in August 2023.