How Covid19 has changed the loyalty landscape

2020 has been a turbulent year for countless businesses due to the impact of COVID-19. It has been especially damaging for companies that base their trade around customer loyalty , such as the airline and travel industry. To best identify how to move forward, it’s worth looking at exactly how this global pandemic has taught us about reward schemes and what we can learn from this. 

An interesting development is that consumers have become bolder and more adventurous with how they shop. A recent report from McKinsey found that more than three-quarters of consumers have tried out new brands, shopping locations or types of shopping during the pandemic. 

There has also been an increase in support for local business. Studies show that not only are a third of consumers more supportive of their nearby shop but over half say that they intend to deliberately spend more money with local businesses after lockdown ends, to show their support. But what can we take from this?

A recent report from Deloitte demonstrated that customer loyalty is heavily geared around good communication and customer service. Looking ahead to 2021, it’s clear that adding value to the lives of customers is the key way to not only hold onto their most valuable clientele but to also increase their numbers. 

Adding value is the key element, whether it’s something as simple as free shipping or free returns when making online orders; or online alerts when an item the customer wants goes on sale. The latter provides a direct line to the consumer, letting them know that they are valued and offering gratitude and bonuses for their existing custom. It improves their shopping experience and makes them feel special. 

Surveys also show that insider access to exclusive content and information is another major benefit for the consumer, along with cashback on each purchase and the ability to earn points with every purchase that can eventually be redeemed for rewards. Other benefits include notifications via Alexa and Google Assistant, plus access to their personal shopping history, but it’s the benefits given for being loyal customers that customers value most highly. 

It’s clear that the next few months, and possibly years, are going to be tough for the global economy, but if businesses take on board the lessons learnt from this complex and tumultuous year, there are ways to emerge out the other side with an even more loyal and satisfied customer base. This will involve numerous elements, such as utilising technology to enhance the customer experience, but the key lesson to take away should be that adding value to the lives of consumers and rewarding repeat custom is the ultimate way to maintain customer loyalty and trust.