August 18, 2025

IPSOS’ CXO Jamie Thorpe Talks The Shifting Dynamics of Customer Loyalty

By Geoff Spick

While CXM reports daily on the latest CX news and hunts down interviews from the CX trenches. A view from on-high is always welcome. We had the opportunity to get the thoughts of IPSOS Chief Experience Officer Jamie Thorpe on the changing face of customer loyalty from his lofty perspective.

Key Points:

• There’s one thing nearly all (97%) CX professional agree on: Loyalty is an important part of their organisation’s outcomes (‘Beyond Transactions: The Shifting Dynamics of Customer Loyalty’).
• Loyalty has transformed from reward programmes to active customer advocacy.
• Many companies still struggle with CX basics despite industry growth.
• Investing in CX pays off, with a +1% improvement potentially worth millions.
• AI and omnichannel integration are the future of CX, but many organisations are still siloed.

The New Face of Loyalty

Gone are the days when loyalty was measured by the number of customers enrolled in a rewards programme. As Fred Reichheld, the creator of the Net Promoter Score®, points out, there’s a difference between the proportion of people who say they will advocate for a brand and those who actually do. It’s the act of advocacy that truly impacts a business’s bottom line.

The Power of Brand Advocacy

I remember a powerful insight from a marketing and advertising talk I attended, where the folks from Harley Davidson shared:
‘We have thousands of living, breathing advertisements on the roads every weekend because our passionate customers embody the brand. They’re out there, proudly advocating for Harley Davidson through their actions and lifestyle.’

It’s a testament to the deep connection and loyalty that Harley Davidson has fostered with their customer base, where the consumers themselves become the most authentic and influential brand ambassadors.

So in terms of marketing, some brands don’t need huge campaigns and adverts because of the fame of the brand and how much people advocate for it. As Andrew Custage and I discovered, 87% of CX professionals believe loyal customers are more likely to be brand advocates. When a company harnesses customer advocacy, satisfied customers become walking advertisements, spreading positive word-of-mouth recommendations. This organic form of marketing is invaluable, carrying more credibility than traditional advertising.

How CX is Moving from Passive to Active

In the past, CX measurement was a passive process, with long gaps between collecting the feedback and taking action. Now, with real-time technology, CX has become an active, ongoing engagement. Companies can quickly address service issues and recover from customer complaints, creating a more dynamic ecosystem for loyalty.
In our research, 80% of respondents said that it was cheaper to keep existing customers than constantly chasing new customers. This aligns with the long-standing sales adage that 80% of a company’s revenue comes from just 20% of its customers.

Here’s a big BUT – many businesses still focus their marketing budgets on creating a sales funnel and acquiring new customers, often neglecting their existing customer base. Take the adverts offering an amazing deal exclusively for new customers, that would rile up your existing customers. “Hey, I’ve been a loyal customer for years, but where’s my reward?”

Investing in CX Pays Off

Trust me. One thing that can’t be disputed is the return on CX investment (ROCXI). By focusing on delivering exceptional service and experiences, companies can see a direct line between performance and financial return, looking at retention, advocacy, and share of wallet spend. In some instances, just a 1% improvement in CX can be worth hundreds of millions of dollars for large global organisations. Don’t underestimate the power this can have and the doors it can open in your business.

Bridging that 11-point Perception Gap

Our joint research with Medallia revealed an 11-point gap between how organisations perceived loyalty and how customers perceived it. It’s funny, though – organisations were actually more pessimistic about loyalty than customers were! This just goes to show that advocacy isn’t always a straightforward, linear process.
Take trains – I detest them, but my binary data would suggest I’m a happy customer. It’s not a choice; it’s a lack of options. Organisations often misinterpret numbers by not understanding brand perception. That’s why sentiment analysis is crucial.

The disconnect between brands and customers isn’t new, but brands have become more pessimistic lately. Customers want to build relationships with services they’re comfortable with, feeling known and understood. But when forced to switch, the disconnect arises. To bridge this gap, organisations must prioritise understanding customer sentiment beyond surface-level metrics, creating personalised experiences and emotional connections that foster genuine loyalty.

Looking Ahead: Stay Optimistic, but Remain Agile

Today, CX is bigger than ever, but not all companies are doing it right. Some pay lip service, while others truly embrace it.
The reality is, while the CX industry is growing and evolving rapidly, many clients and customers are still behind the curve. Tech companies like Medallia are pushing the boundaries with AI-powered tools and omnichannel integration, but the majority of organisations are struggling to keep up.

To stay ahead of the curve, companies need to prioritise CX management, harness the power of brand advocacy, and bridge the perception gap between themselves and their customers. By doing so, they can foster genuine loyalty and reap the rewards of a satisfied, engaged customer base that will become their most powerful marketing tool through word-of-mouth advocacy.

Want to discover how customer loyalty can transform your business?

Customer experience is changing faster than ever, with AI posing a material challenge to all companies. Click to find out more: “Beyond Transactions: The Shifting Dynamics of Customer Loyalty.” But, without your customers, any change is meaningless. Unlock the secrets to fostering genuine, lasting connections with your customers in our joint report with Medallia’s Andrew Custage, Head of Research Insights.

The landscape of CX is evolving rapidly, and it’s an exciting time to be in the industry. While there are challenges ahead, they are all to be embraced and I’m optimistic about the future and the impact we can have on businesses and consumers alike. Powerful stuff and we’re keen to hear more boots on the ground opinions.