A study by Accenture showed that more than 50% of people said they had switched a provider in the past year. Nearly 80% said the are switching faster than they did in the past 5 years.
Banks were listed (as well as cable/satellite companies, internet services and retailers) as the most likely victims of people pulling their loyalty. What is really putting fear into businesses is the fact that millennials are not responding to the typical loyalty programs.
“New ‘languages of loyalty’ have emerged, driven by brands experimenting with creative digital experiences, which have changed the dynamics of customer loyalty today,” said Robert Wollan, senior managing director, global lead of Advanced Customer Strategy at Accenture Strategy. “Every consumer has a natural instinct around what makes them ‘stick’ to a brand. The traditional ‘low price’ and ‘reliable service’ mechanics are no longer as effective at driving loyalty.”
The Accenture strategy of loyalty identified several areas driving customer relationships, particularly with millennials. Some of these are:
- Tokens of affection—59% feel loyal to a brand that gives them small tokens of affection, such as personalized discounts.
- Get to know me—41% are loyal to a brand that offers personalized products to create something special. 85% are loyal to brands that safeguard privacy and personal information.
- Thrill seeker—41% are loyal to brands that present them with new experiences,
Kevin Quiring, managing director, Advanced Customer Strategy at Accenture said, “An appetite for extra-ordinary, multi-sensory experiences, hyper-personalization and co-creation, are changing consumer dynamics around loyalty and forcing brands and organizations to shift their approaches and programs.”