Ninety percent of businesses plan to revamp loyalty programs by 2027

Most (89 percent) businesses are planning to invest in new customer loyalty technology and approaches to improve their customers' experience in 2024, following a turbulent year for customer retention as brands battled to retain customers amidst a spending crunch, says research from Antavo. Its Global Customer Loyalty Report 2024 says loyalty marketing technology will form a key part of plans to retain and grow customer spend, with nine in 10 companies planning to revamp their existing loyalty programs within the next three years. Almost half - 44 percent - say that they are not happy with their current loyalty programme.

Meanwhile, two thirds (65 percent) of businesses are looking to replatform their loyalty technology as part of their investment plans. Other key findings from the report include:

• Eighty-one percent of businesses say their loyalty programmes helped them navigate rising inflation and other economic concerns in 2023; 

• Sixty percent of loyalty programme owners have made significant changes to their programmes in the last two years; and 

• Ninety percent of businesses with a loyalty programme report a positive return on investment - the average ROI is 4.8 greater than their investment. 

"This compelling research from Antavo shows that companies increasingly recognize the value of investing in retention over acquisition, as loyal customers are more likely to make repeat purchases and refer others to your business. This report reframes the need for loyalty propositions to become the single connected ecosystem for the users of loyalty programs,” says James Baker, head of strategy at VML Consulting, a contributor to the report.