Building customer loyalty in 2023 - the latest trends

In such challenging times, customer loyalty can be one of the key drivers of a company's bottom line. During the Covid-19 pandemic, loyalty programmes proved to be a tool to ensure customer retention. What is the situation now?

So, how are customers perceived in times of economic crisis?
What are the priorities of loyalty program owners?
What trends in building loyalty among users are to dominate in the near future?

 

Visible change in shopping habits

As consumer incomes decline due to high inflation and increasing prices of food, fuel, and other necessities of everyday life, a change in brand-to-customer strategy is inevitable. Buyers are now spending more time and energy looking for the most attractive deals, including, above all, ways to save money.

According to research by Toluna, 68% of consumer spending has recently been influenced by rising prices and costs of living.
 

Key trends in 2023 loyalty programs

Identifying with a brand Supporting sustainable development, buying ecological products, and charitable activities through loyalty programs allows for properly matching the brand to the values of customers.

Today's consumers are becoming more and more conscious of today's world. They also have access to actually unlimited product offer. With such a supply and the convenience of buying, it is no longer enough for a brand to provide only a good quality product or service. Customers are currently looking for authenticity and want to identify with products and brands of their choice.
 

Time for multi-channel activities

The development of omnichannel and loyalty programs, that are made available to users on the same terms in all sales channels will be more and more intensive in the near future. Companies care a lot about retaining customers as well as building bonds and good relationships with them.

E-gift cards, discounts, points, individual approach the consumers and responding to their needs, both in the real and virtual world, are currently highly desirable.

2023 will be a time of popularizing a new kind of loyalty - the one taking place in the omnichannel, engaging, and rewarding customers regardless of where they shop.

Flexibility of loyalty programs

Optimization of loyalty programs to provide diverse, valuable rewards through simple and customer-centric experiences will be highly-valued in the coming years. Great programs aim to increase flexibility, intensify earning and buying potential by providing greater value and even exclusivity.

The process of actively expanding the level of loyalty offer by, among others, increasing points usefulness, will encourage users to plan and engage in the loyalty program several months in advance. Moreover, the extension of the "pay with points" option, for instance for travel or inexpensive benefits, and the use of gamification will highly impact the process of building loyalty among customers in the near future.
 

2023 is the year of analytics

When considering the spectre of economic recession and high inflation rate, companies of all industries will need to double their analytics efforts to provide customers with the expected and needed experience.

Analytics will become a key determinant and a fundamental factor affecting customer loyalty.

Every company needs solid analytics functioning as a key strategic tool that not only helps in understanding customers, but also guides on how to make the most from their limited assets; especially for prioritizing activities that deliver the greatest return on investment.

In the current economic reality, consumers are becoming more rational and cautious in their spending. As a result, companies will more and more often have to base on precise data and analysis to present themselves and their offer to customers in the most interesting way.

The strategy that is based on comprehensive analytics allow for more effective and scalable personalization of loyalty activities both within and outside the traditional program.

This provides a possibility of giving valuable experiences and building better relationships with consumers. Analytics will make a brand more visible and recognizable for consumers.

Point tracking

The usability of points has been a trend for a long time. The number of ways in which points can be earned and exchanged (not only) for a brand's products or services has increased over the past few years.

On one hand, this is mainly due to the fact that companies try to remain competitive by providing more value to their customers; however, on the other, users become more aware and oriented in the offer of loyalty programs.

It is predicted that loyalty accounts, which points or rewards have a monetary value, will be more and more often integrated with digital payments becoming part of digital wallets, or as a payment option in the ordering process.