Observed Signal · May 1, 2023 · Analysis · Source: CMSWire · Impact: 2/5 · Sentiment: Neutral

Customer Loyalty in 2023: Personalization, Engagement, Brand Meaning

Executive Signal Summary

Marketers are focusing on personalization and engagement to achieve customer loyalty, while facing data availability challenges and reevaluating traditional metrics. The article discusses three approaches: personalization, engagement as a loyalty measure, and a composite metric called 'brand meaning' that correlates 90% with loyalty. It highlights Deloitte Digital's finding that brands personalize only 56% of experiences but only 38% of consumers agree, and that 69% of consumers are more likely to purchase from brands that get personalization right. Data challenges persist, especially for brick-and-mortar retailers due to cookie deprecation and privacy regulations. Experts suggest generative AI can scale personalization efforts.

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High Confidence

Relevant to MarTech and customer experience, but not a breaking industry event; offers analytical insights on loyalty metrics and data challenges.

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Key Takeaways & Evidence Grounding

  • Deloitte Digital study found brands personalize on average 56% of customer experiences, but only 38% of consumers agree.
  • 69% of consumers said they would be more likely to purchase from brands that get personalization right.
  • Lippincott's analysis of 400+ brands across 73 metrics found that a brand's meaning score is 90% correlated with loyalty.
  • Commerce Signals CMO Nick Mangiapane noted brick-and-mortar retailers often don't know who their customers are without loyalty programs.
  • Generative AI is seen as a way to make personalized customer experiences more scalable and sustainable.

Connected Companies & Entities

4 Entities mapped

“Leala Crawford is managing director in Deloitte's digital customer & marketing practice, and Deloitte Digital conducted the 'Personalizing G...”

“Nick Mangiapane is CMO and head of partnerships at Commerce Signals, a customer engagement measurement company....”

“Dani Mariano is president at Razorfish, discussing engagement as a loyalty measure....”

“The article mentions that location data has become harder to obtain since Apple users started turning off location tracking....”

Primary Source Grounding & Direct Attribution
Direct Origin Attribution
Primary Reporting: CMSWire•Published: May 1, 2023
Original Coverage Title: “3 New(ish) Ways to Think About Customer Loyalty”

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