[India], Feb. 15 (ANI): Organisations are wasting a major portion of funds each year on customer loyalty programs that don't work like they used to, according to new research from Accenture Strategy.
With millions of loyalty points sitting dormant and the majority of Indian consumers (85 percent) retracting loyalty at profit-crushing rates, organisations must pay attention to the new factors driving customer loyalty in the digital age or risk losing customers for good.
The Accenture Strategy report, 'Seeing beyond the loyalty illusion: it's time you invest more wisely', gauges the experiences and attitudes of 25,426 consumers around the world, including 562 Indian consumers, about their loyalty relationship with brands and organisations today.
The report found that 86 percent of Indian consumers have switched provider in the past year, and 43 percent confirm their expectations around brand loyalty have completely changed.
"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," said Vineet Ahuja, Managing Director, Advanced Customer Strategy, Accenture India.
"With 75 percent of Indian consumers spending more with the brands they love, organisations that stick to traditional approaches and don't explore the new drivers influencing loyalty risk draining profitability and pushing customers away - even when they have the best intentions or are following their historical playbook. It's time for organisations to take a fresh look at loyalty," added Ahuja. (ANI)