What is wrong with the loyalty program market?

To highlight the gaps and issues in the market of loyalty programs, our team has made a thorough research. We now have a comprehensive picture of all the positive and negative aspects, so our project can be developed by gathering all these aspects together. We’ll introduce you to the most significant researches (in our opinion), so you can deeply understand the current agenda that is happening on the loyalty market nowadays.

The loyalty market has become very common, yet fragmented. This is reflected in low levels of engagement and redemption of customers. Modern LPs are inefficient, lacking in alternative offers or suggestions, but are excessive in points outside of the brand context.

According to COLLOQUY Loyalty Census enrollment in loyalty programs across various industries in the US grew by more than 20% in just three years and has more than tripled since the turn of the century. It seems like customers are interested in joining. LPs, but are their expectations met?

Only 22% of loyalty program members perceive their experience as positivecompared to non-member customers. At the same time, 87% of Americans are willing to have various details of their activity tracked by a brand in exchange for a more personalized and relevant relationship with the brand or program.

Having this data on hand will help Wulet to better understand the target audience of a brand and enhance customer experience. We found out that changing strategy to meet customer expectations results in a 7.5x lift in member satisfaction.

On top of that, attracting a new customer is a much more expensive process, than keeping an existing one, so companies need to pay as much attention to retention as they do to acquisition. Boosting customer retention rates by just 5% can increase profits by between 25% and 95%.

In order to improve the industry if loyalty origrams, Wulet has to create a more relevant and timely experience by incorporating data science and using innovative techniques. We agree with. the authors of Deloitte’s research piece “Making blockchain real for loyalty”, where they claim that new digital technology could be the unique solution.

To change the strategy of LPs is a challenging task, but we are ready to meet with the difficulties along the way for bringing some outstanding decisions: a positive customer experience and the increase of engagement in loyalty programs.