1、DIGITAL CUSTOMER LOYALTY REPORT 2024Theres been a digital transformation of loyalty over the last twenty years-from plastic cards and paper to web and app.Consumers are given more ways to engage,earn and redeem.Businesses are benefiting from greater insight,visibility,reach and retention.But whats w

2、orking best?And where is the loyalty market heading?Where next for loyalty?2APADMI DIGITAL CUSTOMER LOYALTY REPORT 2024WWW.APADMI.COMIntroductionWhy is this important?Loyalty is more important than ever.It is a priority for every brand owner,and digital experiences have changed the way customers wan

3、t and expect to interact with the brands they buy from.But are businesses taking full advantage of everything digital loyalty has to offer?Are the right platforms being invested in and how do you ensure they encourage positive customer experiences to drive retention and growth?The Apadmi Digital Cus

4、tomer Loyalty Report 2024 canvases opinion from leaders in loyalty across retail,financial services,utilities and travel and leisure with the aim of understanding how digital,and more specifically digital products,are supporting personalisation,which audiences are being targeted and where the future

5、 focus will be.Earn and burn points and exclusive offers are well-established and being used to good effect(59%and 72%respectively of our survey recipients are already using these tactics in their loyalty programmes),but gamification,tiering rewards and even charging for paid membership are the curr

6、ent expectation and need to be delivered seamlessly to be effective.Businesses and brand owners know they need to get this right and digital platforms are the way to do it.“The influence our daily digital experiences have on loyalty is more powerful than ever,”says Apadmis Group Content Director Jak

7、e Sargent.“Getting it right isnt easy,but the potential to unlock value for businesses and their customers with great mobile and digital products is really exciting.”397.8%of brand ownersbelieve loyalty has either always been important,or is more important now than ever before.APADMI DIGITAL CUSTOME

8、R LOYALTY REPORT 2024WWW.APADMI.COMEdinburghLondonChesterManchesterAmsterdamUtrechtRotterdamAberdeenLeedsMilton KeynesThe audienceThe Apadmi Digital Customer Loyalty Report is based on 91 responses from European businesses across retail,financial services,utilities and travel and leisure.The respond

9、ents were in mid to senior level roles with responsibility for areas including digital product ownership,customer loyalty,customer experience and CRM.From sport shops to supermarkets,European banks to fast food,bus companies to broadband,the need for increased customer retention and more accurate da

10、ta on customer behaviour remains the same.4APADMI DIGITAL CUSTOMER LOYALTY REPORT 2024WWW.APADMI.COM42%Yes,its liveYes,we are developing one25%Not yet,we plan to create one15%Yes,but we no longer use it6%12%NoInvestmentHave you invested in a digital loyalty programme?While 67%of those surveyed have

11、a digital loyalty programme either live or being created,nearly a third either dont have one or are still in the planning stage.That means budget likely still needs to be found and accompanied by a clear business case on the likely return.5Even though businesses know loyalty is important,not everyon

12、e has full plans in place.APADMI DIGITAL CUSTOMER LOYALTY REPORT 2024WWW.APADMI.COM18-2425-3435-4445-5455-64AgeNumber of responsesOlder or younger?With which age range is your digital loyalty programme most popular?Should your audience focus be now or next?You would expect digital loyalty programmes

13、 to naturally skew towards a more tech-savvy younger demographic.The sweet spot seems to be those aged 35-44,closely followed by the Generation Z digital natives born after 2000.And its the combination of these groups that represents the greatest potential,both now and in the future.However,theres a

14、n important sidenote which is not to overlook the over 40s,as 19%of brands identified those aged from 41-64 as the greatest future opportunity.6APADMI DIGITAL CUSTOMER LOYALTY REPORT 2024WWW.APADMI.COMWith which age range do you see the greatest future opportunity for digital loyalty in your busines

15、s?718-2465+25-4041-64APADMI DIGITAL CUSTOMER LOYALTY REPORT 2024WWW.APADMI.COM8Traditional tactics and more personalisationIts no surprise that the traditional loyalty tactics of personalisation,exclusive offers and earning points are the mainstays of most existing programmes.But when it comes to wh

16、ere the future focus might be,the priorities are widespread,including tiered rewards,paid memberships and gamification.The overall winner is personalisation with 48%of brands highlighting it as the area where theyd like to be doing more.What loyalty tactics would businesses like to use more of in th

17、e future?48%Personalised experienceExclusive offersExclusive pricingGamification/missionsPaid membershipLoyalty points(earn&burn)Scan&goInstant winsTiered rewards40%37%37%36%30%28%23%20%APADMI DIGITAL CUSTOMER LOYALTY REPORT 2024WWW.APADMI.COM9Personalisation doesnt come easy20%believe their current

18、 personalisation is either pretty basic or they dont do any but plan toplan to make their customer engagement strategy more personalised50%The popularity of exploring areas such as rewarding non-commercial behaviour and the ability to donate rewards to charity demonstrate a real desire to create cus

19、tomer value around purpose and not just purchases.APADMI DIGITAL CUSTOMER LOYALTY REPORT 2024WWW.APADMI.COMagree or strongly agree that their digital loyalty programme has driven new customer acquisitionThe real job though is less about enticing people through the door and more about keeping them ha

20、ppy once theyve come in.To do that,you need to know who they are and what they like.Whether a customer is ordering a daily latte from their local coffee shop,or renewing their car insurance from a global underwriter,their expectation is that you know how many sugars they take and how many years no c

21、laims bonus they have.The data,functionality and access afforded by mobile devices,makes them very good at taking away some of the pain of personalisation.Apps are able to tap into the ongoing touchpoints customers have come to rely on for regular,hassle-free tasks and transactions.And the real gaug

22、e of success is not just holding onto customers,but keeping them active.10Mobilising loyalty with a personal touchA loyalty programme,however good,is unlikely to be the main driver in bringing new customers to a brand,but it can definitely help.69%APADMI DIGITAL CUSTOMER LOYALTY REPORT 2024WWW.APADM

23、I.COMPerhaps crucially though,35%believed that customers who are app loyalty members spend more than those who arent.Apps can deliver a more personalised experienceIts a great way of staying front of mind between sales11The two most popular statements regarding the role played by mobile apps in loya

24、lty were.35%APADMI DIGITAL CUSTOMER LOYALTY REPORT 2024WWW.APADMI.COMWhat is your view of an app,when it comes to loyalty?1257%Can deliver a more personal experienceTo drive in store footfall28%To stay front of mind between salesApp loyalty members spend more42%35%A cost effective way to reach custo

25、mersThe most responsive CRM channel42%37%For high frequency purchases31%APADMI DIGITAL CUSTOMER LOYALTY REPORT 2024WWW.APADMI.COMOvercoming the barriersWhat business challenges are you trying to solve with a digital loyalty programme?There are of course things which can get in the way.Budget is obvi

26、ously a big one,but having a clear strategy and demonstrating ROI are the equal biggest.The potential to solve business problems makes a strong case for overcoming these barriers.13Extending lifetime customer value is the business challenge most are trying to solve with their digital loyalty program

27、mes,followed by increased frequency of purchase.Extending lifetime customer valueIncreased frequency of purchaseImproved customer behaviour insightIncreased basket sizeReduce marketing costsAPADMI DIGITAL CUSTOMER LOYALTY REPORT 2024WWW.APADMI.COMTo end on a positive,investment to improve loyalty is

28、 set to go up with 87%of brands expecting spend on digital customer loyalty to increase or significantly increase in the next 12 months.87%Unlocking loyalty potentialLoyalty programmes are clearly benefiting from the efficiencies and effectiveness afforded by digital platforms.The impact this is hav

29、ing on better customer experiences and improved retention is great to see with numbers like 69%of brands seeing digital loyalty programmes drive acquisition of new customers and a third experiencing more spend from loyalty app users.What is more surprising,and just as encouraging,is the potential wh

30、ich is still yet to be realised.One in five businesses consider their digital loyalty offering to be too basic or arent doing any at all.Add to that the fact that half of brands want to do more with personalisation and the opportunity for further value is clear.Which leads on to the final key insigh

31、t which is that while reducing marketing costs,increasing basket spend,improving customer visibility and greater purchasing frequency all remain important,the main business challenge loyalty programmes are seeking to solve,remains extending lifetime customer value,which will in turn help to turbocha

32、rge all of the above.APADMI DIGITAL CUSTOMER LOYALTY REPORT 2024WWW.APADMI.COM14APADMI DIGITAL CUSTOMER LOYALTY REPORT 202415WWW.APADMI.COMApadmi designs,develops and optimises mobile apps for leading brands.Our bespoke digital products help retailers,banks and hospitality businesses create customer experiences which drive increased retention and spend.We unlock new value through strategy,platforms,middleware and systems integrations that transform the way they work.Our clients include:Marcus HadfieldChief Strategy Officer,AGet in