Over the past four years, global loyalty trends have changed significantly, influenced by shifting customer behaviors and rising expectations. Traditional loyalty methods like offering discounts, relying on brand heritage, or silent loyalty have seen small changes, showing that these approaches alone no longer keep customers engaged.
The SAP Emarsys Customer Loyalty Index 2024 highlights that younger consumers are especially attracted to brands offering fresh marketing and exceptional experiences:
- 33% of Gen Z, compared to 28% of all age groups, have switched to a new brand due to its innovative marketing.
- 33% of Gen Z are drawn to brands with ‘cool’ content or visuals, versus 27% of other age groups.
- 26% of Gen Z, compared to 20% from other generations, prefer brands that offer unforgettable experiences.
In short, customers today hold more power and expect more from brands. If their demands aren’t met, they can easily switch to a competitor with just a few clicks.
As the SAP Emarsys Customer Loyalty Index 2024 reveals, the rules of loyalty are evolving rapidly. With the growing importance of AI and digital engagement, brands must rethink their loyalty strategies. By focusing on AI-powered personalisation and delivering value-based solutions, companies can create deeper, lasting relationships with customers and succeed in this new landscape.
Richter, S. (2024) Customer loyalty index: Almost Half of gen Z and millennials abandoned a brand because they grew bored with them, The Future of Commerce. Available at: https://www.the-future-of-commerce.com/2024/10/10/customer-loyalty-index-2024/?utm_content=buffer7751d (Accessed: 14 October 2024).
