Why leaders and consumers have different ideas about loyalty

Core Insights - There is a significant disconnect between business leaders and customers regarding loyalty, with executives focusing on measurable behaviors while customers view loyalty as an emotional connection [3][4] - A PwC survey reveals that nearly 60% of executives believe their loyalty programs are ineffective, indicating a misalignment between what companies track and what customers desire from loyalty memberships [4][5] - The perception gap is stark, with 89% of executives claiming customer loyalty has increased, while only 39% of consumers agree, highlighting a critical misunderstanding of customer experiences [6] Loyalty Programs - Executives tend to prioritize discounts and rebates in loyalty programs, but customers also value exclusive access, community, and personalized experiences [5] - Nearly half of executives believe their loyalty programs will become obsolete within three years due to changing customer engagement methods, such as reliance on reviews and influencers [5] - Over half of consumers cite poor product or service experiences as the primary reason for discontinuing brand loyalty, emphasizing the importance of early customer interactions [6]