Customer Loyalty 2020 & Beyond

Capillary named a Leader in SPARK Matrix™: Customer Loyalty Solutions, Q2 2024 Report Read more >

Uncover technology and customer loyalty trends for 2020 and beyond

In North America, the number of loyalty program memberships in the retail industry is at 1.6 Billion — an all-time high, and a positive sign that consumers are looking for a deeper connection with brands. Yet, the state of customer loyalty is still far from ideal. A whopping 46% of the memberships are inactive; a large question mark looming over the efficacy of the loyalty programs today.

To stay ahead in the rapidly evolving retail sector, retailers will need to understand how shifting customer behavior and preferences will shape the future of the industry. The winners of tomorrow will be those who are agile and forward-thinking in adopting new technologies and channels. In this report, we aim to uncover the technological and customer trends that are likely to make the biggest impact on customer loyalty in 2020 and beyond.

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Why Customer Relationships Matter Brand Connection Vs. No Brand Connection

300%

Changes to Customer Lifetime Value: Emotionally engaged consumers have a 300% higher CLV than a non connected/engaged customer

5.1 Years

Connected customers stay longer with the brand: 5.1 years vs 3.4 years

80%

8 in 10 customers with high emotional engagement will recommend the product to their family

Methodology

Capillary conducted a study with 28 chief marketing officers across the globe. Spanning three verticals, the research focused on the top priorities for retailers & marketers in the next decade.

Marketplace research: Capillary analyzed over 100 loyalty programs across 7 countries in order to gauge the strongest features of different programs.

Key Takeaways

How to stay ahead in a rapidly evolving retail sector marked by digital transformation and technological advancement. Trends making the biggest impact on customer loyalty in 2020 and beyond. Customer propensity of different generations of Americans, how various generations want to engage with a loyalty program. The rise of emotional loyalty, and how to move beyond transactional loyalty.

Faster Deliveries6

An intelligent order management system can foresee bottlenecks in delivery according to real-time conditions, and reroute the delivery onto the fastest route. Additionally, an OMS offers flexibility with delivery. Based on the clients requirements, the order can intelligently be split into multiple shipments based on costs or delivery location. In comparison to a traditional delivery system, using an OMS automatically provides the inventory personnel detailed information on the delivery at hand, leaves less room for human error, saves time and streamlines the entire process.