REGIONAL ROUND-UP
AFRICA APAC EUROPE MIDDLE EAST NORTH AMERICA
LOYALTY PROGRAMMES AND PERSONALISATION FALLING OUT OF FAVOUR DUE TO UNDERWHELMING ROI
New research from global Digital Transformation firm , Apply Digital , reveals that large enterprises are refocusing customer engagement investment on emerging technologies , notably AI . Traditional strategies such as personalisation and loyalty programmes are being deprioritised in light of perceived poor return on investment ( ROI ).
The Future of Customer Engagement study surveyed 500 senior managers from large enterprises in North America . When asked what tactics had offered the best ROI , 71 % of respondents identified AI compared to just 15 % for loyalty and rewards programmes . are losing interest in loyalty programmes , an equal percentage disagrees .
The research also highlights that organisational misalignment and siloed data are the primary barriers to achieving better results from customer engagement strategies . Many large enterprises struggle to unify their customer data , making it difficult to deliver the types of cohesive , personalised experiences that drive revenue .
Milne said : “ AI is seen by many as a solution to the relative decline in the effectiveness of loyalty . However , businesses are unlikely to meet their targets until they have addressed the underlying structural challenges that hold them back from moving to a data-first model .
“ AI tools such as chatbots and personalisation engines can be highly effective if they are integrated with existing systems and tools to support engagement efforts . However , this will only work if sufficient investment has already been put into data integration and alignment across teams and platforms .” x
Low levels of confidence have prompted over a third ( 38 %) of organisations to plan for zero to moderate spending on loyalty programmes over the next two years .
Lauren Milne , Chief Strategy Officer at Apply Digital , said : “ As companies reassess their strategies , many are turning to AI tools to enhance customer engagement . This does make a lot of sense – there ’ s little doubt that AI-driven personalisation tactics play a huge part in driving efficiencies and conversions . However , that doesn ’ t mean that there isn ’ t still a place for more traditional CX strategies such as loyalty ; the trick is reimagining and reinvigorating them through the lens of AI .”
Despite reduced investment , 47 % of respondents still view loyalty and rewards programmes as effective tools for driving repeat business . However , closer analysis reveals a notable split in opinions ; while 43 % of senior leaders believe customers
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