Customer retention trends stand out in North America, Asia-Pacific and Europe
Loyalty program trends, challenges and investments are evolving around the world. But what differentiates North America from Asia-Pacific? Or Europe? Enterprise loyalty technology provider Antavo has some insights to share on customer loyalty in these key regions after releasing its 2022 Global Customer Loyalty Report last year.
By: Zsuzsa Kecsmar, Antavo
Over the past few years, thanks to digital transformation and a general drive to meaningfully connect with customers, loyalty programs have seen unprecedented success. Just four months after its release, 3,000 CMOs and Loyalty Managers downloaded the 2022 Global Customer Loyalty Report. So our research team dug deeper into the data from the North American, European and APAC markets. As a result, we have launched standalone reports for each market. Each of the three reports provides unique insights into how companies in each region are investing in loyalty marketing, how they see the biggest customer retention challenges, and what types of features they plan to implement in their loyalty programs in the future.
Read on to discover some of the key highlights from the regional report.
Loyalty Program Satisfaction: North America Leads the Way
Among the three regions analyzed in the global report, loyalty program owners in North America are the most satisfied with their loyalty programs with a rate of 63.3%, which means that even in the largest and most saturated markets, organizations are still succeeding with their rewards programs. In Europe, 56.2% of program owners said the same, so satisfaction ratings closely mirror the global average.
At the other end of the scale is APAC. Only 42.4% of companies in APAC said they were satisfied with their programs. It is also important to note that APAC lags behind Europe and North America in tracking the ROI of their loyalty programs, which is an essential element to understand the performance of the program. Although the reports do not directly examine the correlation between ROI tracking and low satisfaction rates, a poor understanding of program ROI may explain why so many APAC companies reported neutral satisfaction. regarding their loyalty programs.
Offering personalization in loyalty programs: Europe leads the pack
European companies are leading when it comes to offering personalization. 56.3% of European companies surveyed say they already offer personalization. At the bottom of the ladder, in North America and Asia Pacific, 36.7% and 30.3% of respondents said they offer personalization, respectively.
This represents a huge opportunity for companies in North America and Asia-Pacific that are equipped to act quickly and start delivering personalized offers and experiences to their customers as part of their loyalty strategy.
Europe is also unique in that 40.6% of program owners in the region are already engaging customers outside of the buying cycle, which is higher than companies in other regions currently engaging customers. in this way.
Loyalty Platform Priorities: Apac Accelerates Ease of Use and No-Code Technology
One of the global loyalty challenges is finding a powerful yet flexible technology that supports the company’s loyalty program strategy. Here’s a quick look at how companies are approaching technology and what they’d like to see in the future.
While the majority of businesses in all three regions want easy-to-use programs, loyalty program owners in APAC have focused on making life easier for their marketers. While all three regions expressed support for no-code loyalty platforms, an incredible 85.7% of companies in APAC favor the no-code approach. This capability is precisely how loyalty platforms can help any business reduce its reliance on IT teams.
Regarding how companies currently manage their loyalty programs, global survey participants who already have a loyalty program were asked how their loyalty program is managed: with in-house technology or through a third-party provider. These two options are very different and shed a lot of light on the type of experience companies have with their loyalty programs.
51.5% of businesses in Asia-Pacific manage their loyalty programs using in-house technology. In North America, companies prefer the third-party approach, with 60% opting for suppliers. Meanwhile, European companies saw an even 50-50 split.
Additional investments and renovations: clear global trends
In our survey, we asked participants how they plan to invest in customer retention over the next three years. Most expressed a strong desire to “increase” or “significantly increase” their investments. So we’re on track to see more support for loyalty programs around the world. With 84.4%, European companies lead the way in planning to increase investment, closely followed by North America at 80.0% and APAC at 78.8%.
We also asked respondents in each region how likely they are to revamp their loyalty programs over the next three years. North American respondents took the top spot with 80% planning a redesign, followed by Europe at 71.9%, then APAC at 66.7%. These high percentages, especially in the North American market, indicate that even companies happy with their current programs are considering revamping them, perhaps in an effort to keep up with the latest loyalty marketing features and trends.
In three years, what is considered “the default” by loyalty program members will change forever. Companies planning to enter the loyalty market in the foreseeable future or looking to revamp their program should act quickly and cautiously while keeping in mind the growing trends.
These statistics only scratch the surface of the information contained in our regional reports. Each report contains more information on loyalty challenges, trends, and planned investments.
Discover additional regional information by downloading the reports:
Zsuzsa Kecsmar is the Co-Founder, CMO and Head of Partnerships at Antavo. She has been part of Antavo’s growth from startup to scale. Listed by Forbes as one of Europe’s Top 100 Female Tech Founders, Zsuzsa is a former journalist recognized by the European Commission.