The Surprising Obstacle Sabotaging Loyalty Programs You Never Saw Coming
Ever wonder why loyalty programs often feel more like expensive freebies than genuine customer magnets? You’re not alone. Many brands swear by these programs as golden tickets to customer devotion, while others are downright skeptical, suspecting they’re just leaking profit. Here’s the kicker—a recent survey of marketing pros spills the beans: a significant chunk of companies aren’t tapping into the richest treasure trove their loyalty programs offer—the treasure being first-party and zero-party data. Imagine handing your best customers a megaphone, then ignoring what they shout back. Crazy, right? So, what’s stopping brands from fully embracing this data goldmine and turning it into rock-solid loyalty? Let’s dig into this puzzling paradox and see if we can crack the code. LEARN MORE.
Some brands hold their loyalty programs in high regard, seeing them as a key to their success. Others are more skeptical, questioning whether their programs actually foster loyalty or just needlessly give away margin.
A new survey of 310 loyalty and marketing professionals by Forrester Research, commissioned by Zeta Global, confirms this skepticism, finding that 30% of brands rate their loyalty programs as only somewhat effective, at best. It also reveals where much of that skepticism likely stems: the collection and use of loyalty data—or rather the lack thereof.
According to The Underutilized Superpower Hidden in Loyalty Data report, 27% of brands don’t use their loyalty programs to collect first-party data and a whopping 38% don’t use it to collect zero-party data. That’s a huge missed opportunity for brands to get to know their best customers better, and then use that knowledge to serve those high-value customers better.
That begs the question: Why aren’t 100% of brands collecting zero- and first-party data via their loyalty programs? What’s holding them back?
>> Read the entire article on CMSWire.com
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