A recent survey by Apadmi revealed that 67% of businesses anticipate increasing their investment in digital loyalty initiatives over the next 12 months. The report shows that loyalty is more critical than ever, with 81% of respondents noting that loyalty has either always been important or is now a top priority. The primary challenge digital loyalty programs address for businesses is encouraging repeat purchases.
The report also uncovered that 36% of businesses are developing a digital loyalty program, while 35% already have one. Another 13% plan to implement one, while less than 1% stated they no longer use loyalty programs, emphasising the growing significance of digital loyalty strategies among brands.
Jake Sargent, group marketing director at Apadmi, commented: “Businesses across all sectors are feeling increasing pressure to acquire, engage and retain customers in increasingly competitive markets. Rising living costs for customers and business costs for brands means retaining and engaging loyal customers is essential to safeguarding retention and revenue, with the need to create more efficient and effective loyalty programmes and experiences greater than ever.
The rise of mobile apps
Mobile apps are increasingly recognised as a key channel for customer relationship management (CRM), with 24% of businesses ranking them as the most responsive CRM tool. The ability of mobile apps to deliver personalised experiences and cost-effectively reach customers was the top benefit, with 40% of brands emphasising both features.
Personalisation remains a crucial aspect of customer engagement, with 81% of businesses incorporating it into their mobile loyalty strategies. However, a quarter of respondents admitted they only have basic personalisation or haven’t implemented it yet. This highlights the increasing demand for more tailored customer experiences, with brands acknowledging the need for more effort. Compared to the previous year, there has been a 10% rise in businesses planning to enhance their personalisation efforts.
Looking ahead, businesses are considering new loyalty tactics, with 49% planning to invest in exclusive offers, up from 40% in the 2024 report. In contrast, tactics like paid memberships (19%) and scan-and-go (15%) saw a decline in interest.