Page de couverture de 3| Why your customer loyalty strategy might be failing (and what's working in retail now)

3| Why your customer loyalty strategy might be failing (and what's working in retail now)

3| Why your customer loyalty strategy might be failing (and what's working in retail now)

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The customer loyalty strategy landscape is experiencing a seismic shift. The loyalty market is projected to reach £4 billion by 2029, but brand loyalty is eroding. In this episode, Jo explores why 45% of customers are abandoning beloved brands for cheaper alternatives and what industry leaders like Boots, ASDA, and McDonald's are doing to build connections instead of just collecting points. Perfect for retail marketers, operations managers, and CX professionals who suspect their loyalty programme optimisation is stuck in 2015. What You'll LearnWhy traditional loyalty programmes are failing - Discover the uncomfortable truth about discount habits vs. genuine loyalty • How AI is transforming customer retention - Learn from Boots' life-stage personalisation that increases engagement by 40% • The omnichannel trust factor - Why 76.6% of customers switch brands after just one poor delivery experience • Gamification that works - ASDA's mission-based approach and McDonald's enduring Monopoly success • Building trust through data transparency - How brands earn permission to personalise experiences Key Takeaways The Loyalty Paradox: Growing market (£2.56B to £4B by 2029) but declining brand loyalty Personalisation that matters: Boots uses life-stage data to serve relevant content and products, not just discounts Gamification evolution: ASDA's missions turn shopping into achievements; McDonald's Monopoly celebrates customer choice Trust through transparency: Explaining data use in human language generates higher opt-in rates The real shift: From keeping customers to becoming the kind of brand customers want to keep Featured Brands & ExamplesBoots - Life-stage personalisation and data transparency • ASDA - Mission-based rewards programme innovation • McDonald's - Monopoly campaign mastery • Nectar - Customer education and security awareness • H&M - Aspirational loyalty with status and community Key Statistics • 81% of customers worried about finances (McKinsey) • 45% switching to own-label alternatives • AI-driven personalisation increases engagement 40% (Eagle Eye/Retail X) • 76.6% switch brands after one poor delivery experience • £19 million built up in ASDA cash pots since launch Questions for Reflection
  1. Are you building relationships or just managing transactions?
  2. Are communications based on what matters to customers now or what they bought last week?
  3. Is every touchpoint designed to build trust or just complete transactions?
  4. Are you creating spaces for customers to connect with your brand's values?
Next Steps Pick one small experiment for next week:
  • Personalise email subject lines based on purchase patterns
  • Follow up after delivery to ensure satisfaction
  • Create a simple challenge that makes regular visits more rewarding
Resources 🎧 Shownotes: wheresyourcustomer.com/3
About the Host Jo Williams is a certified CX strategist with over 20 years in retail and trade marketing. Her mission is to help retail professionals create experiences that make customers feel valued. Subscribe & Review If this episode gave you a fresh perspective on building customer connections, please leave a review on Spotify, Apple Podcasts, or wherever you listen. Your review helps reach other retail professionals who want to discover practical strategies that work.
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