Episode 6: Do loyalty programmes actually influence customer behaviour?

Strategically, brands cannot jump into the world of loyalty lightly. It is a long term commitment to their consumers and not a short term marketing campaign. The number 1 question we are asked by brands wishing to either create a new loyalty programme or improve upon an existing loyalty offering, is “will the loyalty programme change our customers’ behaviour?”

Commercially, when Truth helps our clients to create business cases regarding loyalty programmes, the magic number for changed behaviour is typically between 2-6% incremental revenue change. Obviously, this varies massively by industry and maturity of programme, market place, etc. As a broad-brush estimate, we use 4% incremental revenue performance but how is this achieved?

In this episode, Amanda Cromhout talks  about customer behaviour and how loyalty programmes definitively influence this.

To download the 2019/20 Truth & BrandMapp Loyalty Landscape Whitepaper simply click here.

Happy listening!