Loyalty marketing — rewarding customers for repeat purchases or interactions with a brand — is gaining steam as a key strategy for companies that want to enhance customer relationships and build long-term value.
That’s one takeaway from a new report on loyalty marketing by the Association of National Advertisers (ANA) and HUMAN Security (HUMAN).
“As loyalty marketing continues to grow in importance, it is critical for marketers to not only leverage its benefits but also address the potential risks, especially fraud,” said Bob Liodice, the ANA’s CEO. “This new research highlights the need for proactive measures and a comprehensive strategy to safeguard loyalty programs and optimize their effectiveness.”
According to a news release, the research aims to shine a light on the benefits, challenges, and concerns surrounding loyalty marketing — especially where fraud is concerned.
“Loyalty programs offer marketers invaluable data, but that same data makes them a prime target for cybercriminals,” said Stu Solomon, CEO at HUMAN. “Fraudsters use tactics like account takeovers, fake accounts, and bot-driven attacks to steal and monetize customer information. At HUMAN, we apply advanced security measures to protect against these threats, ensuring that every interaction is real and that your customer data remains secure. By staying ahead of evolving attacks, we help you protect your most critical asset — the trust of your customers.”
According to the report, 59% of survey participants indicated that loyalty marketing is expected to become more important for their organizations over the next year. Among the key drivers behind the trend: the necessity for brands to establish one-to-one relationships with customers; providing the ability to collect customer data and insights; and marketing directly to customers.
Loyalty members are a brand’s best customers, the report finds, as consumers see loyalty programs as a path to finding value and pushing back on the effects of inflation.
The report offers a special emphasis on preventing all potential forms of loyalty fraud, which often requires identifying gaps in the system. Key recommendations for protecting loyalty programs include reviewing past campaigns; evaluating loyalty program benefits; conducting comprehensive audits; the need to forge partnerships with experts in loyalty fraud protection; and more.
The report, “Loyalty Marketing: The Good, The Bad, And The Ugly,” includes a quantitative survey of 112 client-side marketers. A copy of the full report can be found HERE.
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