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Retailers Need To Upgrade Loyalty Programs For Digital Age, Study Reveals

March 26, 2015: 12:00 AM EST
Consumers are dissatisfied with retailers' existing loyalty programs, according to a study by Capgemini Consulting focusing on customer sentiment on social media. Results of the study revealed the average household in the United States has more than 21 loyalty program memberships; however, it only actively uses 44 percent of these programs. Data revealed almost 90 percent of social media sentiment was negative, with the negativity pervading across all industries. Among Millennial consumers, who are forecast to spend more than $200 billion annually by 2017, negative perception of loyalty programs was at 85 percent. Cosmetics retailer Sephora aimed to improve consumer participation in its loyalty program by launching its Beauty Insider scheme.
"Fixing the Cracks: Reinventing Loyalty Programs for the Digital Age", Capgemini, March 26, 2015, © Capgemini
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