Customer Experience 2019 (Part 3)—Loyalty Marketing

Customer Experience 2019 (Part 3)—Loyalty Marketing

The Building Blocks of a Better Customer Experience (A 4-Part Series)

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About This Report
One thing hasn’t changed in the shift to digital marketing and advertising: It’s still cheaper to keep current customers loyal than to acquire new ones. This report explores how marketers are messaging to current customers to keep them coming back.
Table of Contents

Executive Summary

Keeping current customers is still cheaper, easier and more efficient than acquiring new ones. Tactics may have changed somewhat in a digital world, but loyalty marketing and ensuring a good post-conversion customer experience remain key responsibilities of marketers.

How loyal are consumers in today’s landscape of choice and fragmentation?

It’s hard to measure an overall concept like “loyalty,” but one indicator is the continued health of loyalty programs. Most US internet users across all age groups over 25 belong to some type of loyalty program, including more than two-thirds of those 35 and older with supermarket memberships and a majority of younger adults who have some type of retail membership, according to YouGov.

How are marketers messaging to current customers?

Email is still the most important digital channel for current customer relationships, though some marketers’ email programs leave a lot to be desired. Display retargeting, social media marketing and direct mail also have a place. And for some brands, a subscription basis is another way to keep in constant touch with customers.

What upcoming trends and influences may affect future practices?

In some ways, post-conversion marketing efforts avoid the pitfalls of the current privacy debates because past customers have chosen to have some type of relationship with marketers. But simply being a past customer doesn’t mean consumers want to keep sharing data or approve of all the ways marketers are using that data. So, regulation and consumer sentiment still have an important effect here. A continued push toward a customer-centric focus may also affect marketer priorities as they look to do what consumers say will keep them coming back.

WHAT’S IN THIS REPORT? This report investigates how marketers are messaging to current and past customers to keep them loyal and satisfied in the post-conversion stage of the purchase journey.

KEY STAT: According to November 2018 YouGov polling, two-thirds of US internet users were members of some type of loyalty program, with many traditional types of programs attracting large followings—especially supermarkets.

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Table of Contents

  1. Executive Summary
  2. What Is Loyalty Marketing?
  3. Loyalty Programs in 2019
  4. How Marketers Are Connecting with Current Customers
  1. Current Challenges and Future Opportunities
  2. Key Takeaways
  3. eMarketer Interviews
  4. Read Next
  1. Sources
  2. Media Gallery

Interviewed for This Report

Leah Anathan
Qubit
CMO
Interviewed April 1, 2019
Sarah Assous
Zoovu
Senior Vice President, Marketing
Interviewed June 6, 2019
Nicolas Avila
Globant
Vice President, Technology
Interviewed May 3, 2019
Dennis Becker
Mobivity
CEO
Interviewed April 23, 2019
Brad Birnbaum
Kustomer
Founder and CEO
Interviewed April 25, 2019
Emily Blair
Goodway Group
Vice President, Strategy
Interviewed April 25, 2019
Olivier Blayac
Color & Co
General Manager
Interviewed May 23, 2019
Dave Cesaro
Valassis
Executive Director, Vertical Marketing
Interviewed June 7, 2019
Jane Clarke
Coalition for Innovative Media Measurement (CIMM)
CEO and Managing Director
Interviewed April 22, 2019
Karen Cohen
AppsFlyer
Director, Product Marketing
Interviewed April 24, 2019
Ron Cohen
Claritas
Vice President, Product Strategy
Interviewed June 7, 2019
Carolyn Corda
Adara
CMO
Interviewed April 25, 2019
Devon DeBlasio
Neustar
Director, Product Marketing
Interviewed April 23, 2019
Craig Elbert
Care/of
Co-Founder and CEO
Interviewed May 20, 2019
Ric Elert
Conversant
President
Interviewed April 22, 2019
Brian Fesen
Mack Weldon
Vice President, Performance Marketing
Interviewed May 23, 2019
Mike Fisher
Fluent Dialog
President
Interviewed April 4, 2019
Ryan Fleisch
Adobe
Head of Product Marketing, Advertising Cloud DSP
Interviewed April 26, 2019
Jason Grunberg
Sailthru
Vice President, Marketing
Interviewed April 25, 2019
Dave Grzelak
The Shipyard
Chief Strategy Officer
Interviewed April 24, 2019
Steve Gutentag
Thirty Madison
Co-Founder and CEO
Interviewed April 29, 2019
Rich Hope
Jersey Mike’s
CMO
Interviewed June 6, 2019
Tony Hudson
Civis Analytics
Media Solutions Lead
Interviewed April 16, 2019
Nick Jordan
Narrative I/O
Founder and CEO
Interviewed April 25, 2019
Jay Klauminzer
Raise
CEO
Interviewed May 20, 2019
Oz Lang
Adobe
Product Management, Advertising Cloud TV
Interviewed April 26, 2019
Katie Malone
Civis Analytics
Director, Data Science Research and Development
Interviewed April 16, 2019
Shane McAndrew
Mindshare US
Chief Data Strategy Officer
Interviewed April 23, 2019
Edwin Miranda
KOI IXS
CEO
Interviewed April 24, 2019
Jackie Mockridge Mattina
360i
Senior Vice President, Consumer Insights and Analysis
Interviewed April 26, 2019
April Mullen
Selligent Marketing Cloud
Director, Consumer-First Adoption
Interviewed April 25, 2019
John Nardone
Flashtalking
CEO
Interviewed April 24, 2019
John Nash
RedPoint Global
Chief Marketing and Strategy Officer
Interviewed June 6, 2019
Doug Novack
Google
Managing Director, Business and Industrial Markets
Interviewed April 25, 2019
Aubrie Pagano
Bow & Drape
Co-Founder and CEO
Interviewed April 25, 2019
Jen Parbus
Neo USA
Partner, Director
Interviewed April 25, 2019
Alexis Perlmutter
Civis Analytics
Lead Product Manager
Interviewed April 16, 2019
Fabian Seelbach
Curology
CMO
Interviewed April 30, 2019
John Stauffer
DEG Digital
Managing Director, Strategic Planning and Channel Strategy
Interviewed April 23, 2019
Todd Thompson
RRD Marketing Solutions
Senior Vice President of Data, Insights and Customer Engagement
Interviewed April 24, 2019
Jonathan Williams
Civis Analytics
Applied Data Science Lead
Interviewed April 16, 2019
Josh Wolff
ThirdLove
Vice President, Customer
Interviewed May 16, 2019
Randy Gunderson
The Lacek Group
Senior Vice President and Director, Account Services
Interviewed June 28, 2019
Charlie Neer
MiQ
Senior Vice President, Revenue
Interviewed May 5, 2019
TJ Prebil
Evergage
Director, Product Marketing
Interviewed May 9, 2019
Kelsey Robinson
Partner
McKinsey & Co.
Interviewed May 17, 2019
Jay Tandan
Ben & Jerry’s
US Digital Marketing Manager
Interviewed April 22, 2019
Andy Zimmerman
Evergage
CMO
Interviewed May 9, 2019

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authors

Nicole Perrin

Contributors

Ross Benes
Analyst
Lauren Fisher
Principal Analyst
Lucy Koch
Junior Analyst
Jillian Ryan
Principal Analyst
Tracy Tang
Senior Researcher