Accenture Strategy's Global Consumer Pulse report indicates futility of loyalty points program

A global consumer pulse report on retail industry recently conducted by Accenture Strategy reveals that organizations are wasting billions of dollars each year on customer loyalty programs that don’t work like they used to earlier. With millions of loyalty points sitting dormant and the majority of Indian consumers (85 percent) retracting loyalty at profit-crushing rates, organizations must pay attention to the new factors driving customer loyalty in the digital age or risk losing customers for good.

The report gauges the experiences and attitudes of 25,426 consumers around the world, including 562 Indian consumers, about their loyalty relationship with brands and organizations today. The report found that 86 percent of Indian consumers have switched provider in the past year, and 43 percent confirm their expectations around brand loyalty have completely changed. The report also identified five new factors influencing loyalty today.

Vineet Ahuja, Managing Director, Advanced Customer Strategy at Accenture in India, said, “New ‘languages of loyalty’ have emerged, driven by brands experimenting with creative digital experiences, which have changed the dynamics of customer loyalty. Every consumer has a natural instinct around what makes them ‘stick’ to a brand. The traditional ‘low price’ and ‘reliable service’ mechanics are no longer as effective at driving loyalty. With 75 percent of Indian consumers spending more with the brands they love, organizations that stick to traditional approaches and don’t explore the new drivers influencing loyalty risk draining profitability and pushing customers away – even when they have the best intentions or are following their historical playbook. It’s time for organizations to take a fresh look at loyalty.”