Is loyalty still central to customer retention in 2023?

The rising cost of living hasn’t lowered consumers’ expectations for top-notch service. Salesforce’s State of the Connected Customer Report found that 52% of customers expect a better experience from their favourite brands as a result of the current economic climate.

According to Zuko Mdwaba, Salesforce Area VP / Africa Executive & South Africa Country Leader, real-time data offers a path for companies that want to remain competitive in the current economic climate and deliver the personalised experiences consumers expect. When pulled together into a single source of truth, real-time data offers rich and actionable insights that can help deliver the kind of intelligent and connected customer experiences that underpin customer loyalty.

“Our experience, research and data tell us one thing: Brands that want to increase customer loyalty must leverage real-time, intelligent, and automated technology solutions that support seamless connected experiences and personalised journeys,” he says. 

Today, it is still relevant and critical for companies to value their customers' time and engagement by offering them experiences that are valuable, beyond just transactional interactions. This is the view of Glen Gillis, CEO at Sea Monster Entertainment.

“By now, everybody should have some sort of reward scheme. The question is, what does loyalty mean beyond just rewards? Here the critical thing is valuing customers time and their engagement, not just their purchasing. Games are a great way to do this and can help companies build brand equity and communicate their brand purpose in an authentic and relevant way,” he shares. 

For Gillis loyalty is also about how a company understands the lifetime value of a customer and how that relationship is built to last in the long term. “In totality, loyalty is about gathering data and insights, knowing the customer better and then using that information not against them, but with them to better serve their needs."

A brand’s relevance and a customer’s loyalty is increasingly impacted by its commitment to making a positive social impact. 

Dalit Shekel, brand consultant at Relate Bracelets, says that over the years Relate has built a strong brand that is synonymous with social impact, transparency and creating positive change in the world. “This has helped us to attract and retain customers who share our values and are committed to making a difference through their purchases,” she says. 

Shekel adds that they have seen firsthand how brand and customer loyalty can be incredibly powerful in driving social impact. “Our customers are not just buying bracelets, they are investing in a mission and a vision that they believe in. They are part of a community that is making a real difference in the lives of people and communities in need.”

While the personalisation of the customer experience is by no means a new strategy,it is one that is particularly important in the hospitality industry. 

"In an increasingly competitive market where travellers are spoilt for choice, an important part of our guest retention strategy has been to provide personalised experiences and service offerings that suit the unique needs of each of our guests. This approach has allowed us to create a flexible rewards programme to thank our members for their loyalty," says Ayse Abbas, Area B2B B2C Marketing Manager, Middle East and Africa. 

Customers are attracted to brands that offer value and do so in a personalised way. Loyalty then is the brand’s reward for offering customers solutions that seamlessly fit into their lives. 

“We drive brand loyalty by ensuring that whenever we iterate or evolve a product we do so in a way that is easy for the customer to use, meets their specific needs and is an expression of their lifestyle,” says Keletso Mpisane, head of MiWay Blink. 

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