Figure 4: Industry-wise Adoption of Engagement-based Reward Mechanisms % of companies that reward customers for at least one form of engagement Retail Telecom Hotel Chains Banking Consumer Products Consumer 57% Electronics N=160 Source: Capgemini Consulting Analysis Note: Our research focused on 5 ways in which loyalty programs reward a customer for engagement activities (ex: writing reviews, taking surveys), participation in – gamified campaigns, mobile app downloads, social media engagement, and in-store checkins. channel, only 24% allow redemption An industry-wise comparison shows through it. Most importantly, only 9% of that some industries are ahead of the Seamless Cross-Channel loyalty programs offer points curve. 57% of airlines and 41% of Customer Experience Has redemption across all channels. hotel chains reward consumers for a Gone AWOL Clearly, cross- channel redemption is range of behaviors that reflect far from being complete. The Global engagement, other than transactions Companies deliver their loyalty Head of Consumer Insights at a (see Figure 4). programs across offline and online leading F&B major told us that channels, but do customers get an organizations need to strengthen integrated experience? To answer that redemption mechanisms. “Consumers question, we focused on a specific are becoming more and more Personalization needs aspect of this question he entire demanding,” said. “The to become much more redemption of loyalty rewards. We – redemption and reward mechanism, found significant room for improvement and everything associated with it, nuanced, going (see Figure 5). Although a significant needs to become much sharper.” beyond the broad 79% of loyalty programs use the mobile tier-based approach. - Leading Consumer Products Company
Figure 4: Industry-wise Adoption of Engagement-based Reward Mechanisms % of companies that reward customers for at least one form of engagement Hotel Chains Consumer Products Consumer Electronics Retail Telecom Banking 57% N=160 Source: Capgemini Consulting Analysis Note: Our research focused on 5 ways in which loyalty programs reward a customer for engagement – activities (ex: writing reviews, taking surveys), participation in gamified campaigns, mobile app downloads, social media engagement, and in-store checkins. An industry-wise comparison shows that some industries are ahead of the curve. 57% of airlines and 41% of hotel chains reward consumers for a range of behaviors that reflect engagement, other than transactions (see Figure 4). Personalization needs to become much more nuanced, going beyond the broad tier-based approach. Seamless Cross-Channel Customer Experience Has Gone AWOL Companies deliver their loyalty programs across offline and online channels, but do customers get an integrated experience? To answer that question, we focused on a specific aspect of this question – redemption of loyalty rewards. We found significant room for improvement (see Figure 5). Although a significant 79% of loyalty programs use the mobile channel, only 24% allow redemption through it. Most importantly, only 9% of loyalty programs offer points redemption across all channels. Clearly, cross- channel redemption is far from being complete. The Global Head of Consumer Insights at a leading F&B major told us that organizations need to strengthen redemption mechanisms. “Consumers are becoming more and more demanding,” he said. “The entire redemption and reward mechanism, and everything associated with it, needs to become much sharper.” - Leading Consumer Products Company