Latest news with #customerloyalty
Globe and Mail
a day ago
- Business
- Globe and Mail
Digital Silk Releases Report on Customer Loyalty Trends
New York, New York--(Newsfile Corp. - June 27, 2025) - Digital Silk, an award-winning digital agency focused on creating brand strategies, custom websites, and digital marketing campaigns, has released a new data-driven report highlighting the current state of customer loyalty. Based on aggregated insights from over 30 sources, the report outlines key statistics U.S. brands can potentially use to inform customer retention strategies. Customer Loyalty Trends Reveal U.S. Brands May Be Underestimating Retention Opportunities, According to Latest Digital Silk Insights To view an enhanced version of this graphic, please visit: According to the report, 65% of a company's revenue may come from existing customers, yet 44% of businesses focus more on acquisition than retention. Meanwhile, 77% of consumers report staying loyal to specific brands for ten years or more, suggesting a long-term engagement potential that may be undervalued by marketing teams. The Growing Impact of Emotional Loyalty and Rewards Programs The report also shows that emotional connections and personalised experiences continue to play a critical role in brand loyalty. In fact, 76% of customers say they'd remain loyal to a brand that understands them on a personal level. Data also suggests that loyalty programs remain a powerful tool. Nearly 84% of U.S. consumers are more likely to stay with a brand that offers a loyalty program, and 66% of shoppers say earning rewards affects their purchasing behaviour. "Loyalty is no longer just transactional. Brands that align their values with those of their customers and offer relevant, data-backed incentives are the ones more likely to retain long-term relationships," says Gabriel Shaoolian, CEO at Digital Silk. "These insights help businesses re-evaluate how they approach engagement beyond the initial sale." Highlights from the Full Report The full article, Customer Loyalty Statistics: Trends Driving Brand Retention in 2025, features over 50 updated data points from leading sources. Among the key takeaways: 65% of a company's revenue may stem from repeat customers 77% of consumers have remained loyal to certain brands for over a decade 84% prefer brands that offer loyalty programs 70% of emotionally engaged consumers spend up to 2x more on their preferred brands 86% of buyers say personalization influences purchasing decisions These findings suggest that strategic customer engagement can potentially impact profitability and long-term brand success. Why This Matters for U.S. Brands in 2025 As customer acquisition costs continue to rise, businesses across sectors are revisiting how loyalty strategies influence lifetime customer value. Digital Silk's research points to a clear opportunity for companies to assess whether their current approach to retention is aligned with consumer expectations and behaviours. About Digital Silk Digital Silk is a full-service New York branding agency focused on growing brands online. With a team of seasoned experts, Digital Silk delivers industry-leading digital experiences through strategic branding and cutting-edge web design to support engagement and digital marketing services that help improve visibility.
Forbes
2 days ago
- Business
- Forbes
How Product Love Can Help Protect Companies Against Market Disruption
Bharat Kapoor is a partner at Kearney and Global Managing Director of the PERLab. getty Competitive actions, economic downturns, technological disruptions and other challenges can pose significant threats to product companies. However, the concept of "product love" offers a powerful defense against these disruptive forces. Product love is more than customer satisfaction; it's a deep emotional bond between consumer and product. This bond acts as a protective barrier against external pressures. When consumers love a product, they are more likely to remain loyal to the brand, even in the face of price increases or disruptions. The first time I fell in love with a product was with a Korean original equipment manufacturer's black and white TVs back in 1988, while working for my dad's electronics business. They just looked so nice—I did not have the language of industrial design and engineering reliability at that time, but that is why I fell in love with that product. Since then, I've fallen in love with many other products. I've noticed a common connection for products with strong product love is that often they are good for the company (making a lot of money), good for the customers (people love them), and good for the planet (well designed with the least amount of waste—material, process and maintenance). Typical Challenges That Product Companies Face Product companies often face a variety of challenges, including: • Competitive actions: Competitors may introduce new products, lower prices or launch aggressive marketing campaigns to capture market share. • Tariffs and trade barriers: Changes in trade policies, such as tariff imposition, can increase costs. • Economic downturns: Economic recessions can lead to reduced consumer spending. • Technological disruptions: New technology developments can render existing products obsolete. • Regulatory changes: New regulations can affect product design, manufacturing processes or market access. • Supply chain issues: Material shortages, logistical challenges and other disruptions can impact product availability. • Consumer reviews: Negative press and consumer reviews can harm via sales drops and share price declines. Long-term brand damage includes eroded trust, diminished brand equity and higher customer acquisition costs. Companies with strong product love can often withstand these pressures as their loyal customers are less likely to switch to competing brands. Additionally, when consumers have a strong emotional attachment to a product, they may be willing to pay higher prices or be more patient and understanding during disruptions. Building Emotional Connections Through Design Successful product design transcends basic functionality to understand what customers deeply care about—not just their needs and wants. This requires going beyond traditional market research to develop genuine empathy with users' aspirations and values. This emotional connection transforms customers into brand ambassadors, creating a ripple effect that traditional marketing cannot achieve. A lesson I've learned from some of the best product leaders on the planet is that often products fail because nobody wants the product being built. Just because something can be done doesn't mean there will be demand for it. So how we do figure out what customers care about? 1. Be honest: Put yourself in the consumer's shoes. Do they really care, want or need what you are trying to sell? Sometimes I find executives don't even understand what their companies make‚ and that's also a recipe for disaster. 2. Look for unwavering conviction: This is not something that everyone can do. Defining a product that people will care for is an art and science. To identify unwavering conviction at companies, look for those people who are willing to put their careers on the line for a product or a solution. 3. Stay grounded: I've noticed people who create home runs every time stay grounded and pay attention to where consumers may go—they predict the future, but it is not easy. Often products are mediocre because there are no pioneers behind them; they are simply built as part of someone's job. I've found that pioneers focus on great products rather than the speed and quantity of products launched. Hence the "go slow to go fast" philosophy emphasizes thoughtful, intentional design over rapid product launches. I think Apple's success can be largely attributed to the company's focus on innovation and design. The emotional connection many consumers have with Apple products creates a loyal customer base willing to pay premium prices. Meanwhile, Toyota Motor Corporation's management approach, known as the Toyota Production System, is built "on the premise of making work easier for workers" and quickly meeting customer requirements. Trends To Amplify Product Love AI-Driven Personalization AI analyzes consumer datasets to predict needs and preferences, allowing companies to offer tailored products and services. AI can help enhance customer satisfaction and loyalty by making consumers feel understood and valued. Like with any new technology, many early adopters are jumping in head first, meanwhile some lagging companies have closed their eyes. Both could be in for a rude shock. One could waste a lot of time and money, and other could miss out and become irrelevant. My advice to anyone jumping into AI is to think of AI as an assistant (or lots of assistants) who can answer questions you may have in minutes at nearly no cost. Then you, as the product pioneer, have to think about what to do with that info. AI is not magic that will solve all your problems. Sustainability And Circularity Your focus here should be on designing products that minimize environmental impact, promote recycling and reuse, and align with governance standards. Emphasizing sustainability can help the planet and resonate with consumers who prioritize eco-friendly practices. This can extend to even rethinking business models. Minimalist Design This approach emphasizes clean, simple and functional designs, reducing unnecessary features and calls to action. By focusing on what is truly useful or what customers care for, minimalist design can enhance user experience and satisfaction, making products more intuitive and enjoyable. Synergetic Partnerships Collaborations leverage each company's strengths, driving innovation and expanding market reach. Examples include Louis Vuitton and Supreme, Nike and Apple and GoPro and Red Bull. Such collaborations can enhance emotional connections with consumers and drive sustained acceptance by combining the best of both brands. The ultimate goal of a product company is to build lasting emotional connections that transform customers into loyal brand advocates. When consumers love a product, price sensitivity often decreases, word-of-mouth marketing increases and brands can build sustainable competitive advantages. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Fast Company
3 days ago
- Business
- Fast Company
The power of a customer-first strategy
I would argue that the most important indicator of a brand's health is customer loyalty. For leaders, building and sustaining strong customer loyalty is the holy grail. Leaders talk a lot about how to win customer loyalty, and sometimes that could mean getting caught up in chasing the newest shiny object, silver bullet, or trend. To avoid that chase, I've made a point of rooting myself in an approach that sounds basic on the surface, but is truly transformative: making customers the true center of every decision. This isn't a reactive strategy during tough times—it's a proactive philosophy that builds resilience and clarity before you need it. When you remain centered on prioritizing customer needs and experiences, you create a foundation of trust and understanding that fosters long-term loyalty. The human connection in a digital world Technology has improved access to customers in a lot of ways, but it has also created distance. I got to thinking about this after reading a recent LinkedIn post from my colleague Dennis Kozak, written after he toured colleges with his daughter. He said his daughter could sense 'which interactions felt authentic versus those that were rote, detached, and rehearsed.' These were in-person interactions, which should be immune to detachment. But we've all become so accustomed to digitally-driven detachment that it seems our interpersonal standards have shifted. The innate ability to detect authenticity isn't limited to campus tours—it's fundamental to every interaction, especially customer interactions. I am all for the efficiencies gained from AI chatbots, automated systems, and digital interfaces, yet there needs to be a balance between technology and the human element to effectively build true connections. When everyone uses the same technology solutions, genuine human engagement becomes your true differentiator. Demonstrating your ability to understand and connect is crucial in maintaining strong connections with others and is ultimately best left to people, not machines. These qualities foster loyalty, trust, and genuine relationships. Use values as your customer compass The principles that guide your personal decisions should extend to how you prioritize customer needs. I've found that grounding myself in integrity, authenticity, and teamwork creates a framework for customer-centric decision making. Integrity means doing what's right for customers, even—and especially —when facing tough choices and challenging times. Making customers central means that the choice becomes clear if you are making hard choices that prioritize their needs over short-term business interests. Every commitment represents an opportunity to demonstrate that you genuinely value their success as much as your own. 'Authenticity' kind of sounds like corporate buzz speak, but to me, it's very real. It shows up as consistency between what you promise and what you deliver. Back on campus, Dennis said people can immediately tell which representatives were 'passionate about the school and genuinely wanted her to be part of it versus those monotoning from a script while thinking about how soon they could be done with the conversation.' We've all had customer experiences where we felt like the person on the other side was just going through the motions, right? And I hope we've all had the opposite experience, too, when we truly felt seen and heard, like our experience mattered. What a difference! See beyond immediate transactions One great (or terrible) interaction can make or break a customer relationship, but the strongest customer relationships are built over time with consistent engagement. These bonds form when you demonstrate understanding beyond the immediate problem. For example, if a customer contacts your company because they're frustrated about a glitch, it's important to address the glitch. But it's not just about the glitch. It's about the lost productivity, the time spent needing to find contact info and reach out, and concerns about whether they can trust the product in the future. What can you do about that? Technology can actually enhance this understanding when applied thoughtfully. While AI raises legitimate concerns about depersonalization, I've found it can be an unexpected ally in customer centricity when used to augment rather than replace human judgment. By synthesizing different viewpoints from across the organization, we develop more effective responses that truly address customer needs when responding to complex situations. Technology can improve the functional aspects of customer experiences while humans address the intangible elements. Humanize the digital experience As technology continues to rise toward dominance, I think we're at an inflection point: Do we allow digital efficiency to create emotional distance, or deliberately design human connection into every touchpoint? This balance between humans and machines doesn't happen accidentally. It requires deliberately designing customer journeys that incorporate genuine human touchpoints at pivotal moments—especially during those times when trust is tested and either strengthened or broken. When you put customer needs first in good times and in bad (not to sound like wedding vows here!), customers trust that their needs remain your priority, no matter what. These customers are so much more likely to ride out tough times with you and not only stay loyal to the company, but serve as vocal brand advocates who share their experience with others. Now that is the holy grail.
Forbes
5 days ago
- Business
- Forbes
The Strategic Role Of Logistics In Creating Brand Loyalty
David Barberá Costarrosa has been dedicated to e-commerce and its ecosystem since 2017. Entrepreneur, Cofounder of Beeping, among others. In these dizzying times of e-commerce, where we tear ourselves apart analyzing metrics from every angle and saturating our minds with tools that tell us everything down to what color socks our customer is wearing, we forget a silent truth that pulls the strings of this ecosystem: Customer loyalty does not start with advertising. It starts with delivery. Saturated with stores that sell the same things and copy each other, logistics is a secret weapon for companies that always keep their vision one step ahead and understand that every package and every piece of tracking information is a branding opportunity. The Power Of Logistics: Beyond Just Moving Packages Previously, logistics only meant dealing with warehouses, carriers and routes while constantly hearing customer complaints about packages not arriving or getting lost. However, a new trend is raising the bar toward a more sophisticated vision: integrating logistics as an extension of the brand. It's not just about having the carrier knock and leave the package at the customer's door. It's about how, when and, above all, what that person will feel when they receive it. To achieve this, it's essential to understand the fundamentals of e-commerce logistics and how to optimize every stage of the process. That is, ultimately, pure and simple branding. Today, consumers demand precision, speed and transparency. Not delivering an order is a betrayal of your brand's promise. Imagine a customer moving through your entire conversion funnel. They find your ad, enter your store, spend time choosing and purchase the product. All of the effort and resources you've deployed to get them to that point can dissolve like sugar cubes if the package arrives late, the tracking information is confusing, the product arrives damaged due to poor packaging or the return process is painful. This series of unfortunate events can transform a potentially loyal customer into a silent defector. When logistics is planned strategically, however, it can build loyalty. Ultimately, when a package arrives sooner than expected and also looks cared for and personalized, the process has an emotional impact on the customer. That's why logistics must be understood as an emotional touchpoint. Brands that do so will be winning a battle without spending a single cent on advertising. Zappos: When Logistics Becomes Love For A Brand Zappos doesn't just sell shoes. A Stanford report highlighted how Zappos sells trust through a logistics model that's focused 100% on customer satisfaction. This includes fast, free shipping, 365 days to return a product (also free of charge) and customer service that doesn't just respond but solves problems. This policy, backed by a top-tier and extremely flexible logistics system, turned Zappos into an inspiration. It achieved a paradigm shift, moving away from investing in marketing to investing in post-sales. The goal was to have customers receive more than they expected, resulting in not only repeat purchases but also customers recommending the brand. Amazon Prime: The Power Of Logistics Beyond Just Moving Packages Amazon Prime understood earlier and better than anyone that loyalty isn't bought with discounts but earned by delivering on your promises. The empire has been built on one- or two-day deliveries, real-time tracking and an almost unrestricted return and refund policy—even putting the platform's own sellers in check. By consistently meeting expectations through efficient deliveries within promised time frames, Amazon Prime reached 200 million subscribers in 2021. Conclusion Your e-commerce can completely transform the logistics experience to build customer loyalty without feeling the pressure of having to compete with Amazon, which we already know is impossible. Some ways to optimize your brand image through logistics include: • Promising only what you can fulfill (and fulfilling it, of course) • Offering clear shipping options • Making tracking easy and accurate • Simplifying returns as much as possible • Making customer service an act of empathy, not a mere administrative task Remember that logistics today is narrative. It's marketing. It's branding. It's the ending to the story you told your customer while they navigated through your store, and if the ending is disappointing—no matter how good the story was—you've lost. Logistics is about delivering experiences and making sure the story ends in satisfaction. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Forbes
19-06-2025
- Business
- Forbes
Carnival Cruise Line's Loyalty Program Changes May Be A Costly Mistake
Carnival Cruise Line just made big changes to its loyalty program, moving from lifetime status to ... More just two years. Carnival Cruise Line, part of the Carnival Corporation family of cruise brands, is conducting a huge, real-time experiment in customer loyalty. And, it's not going to be pretty. The cruise line announced this week that it's scrapping its 13-year-old loyalty program in favor of a spend-based system that will require customers to shell out tens of thousands of dollars to maintain their elite status. Diamond members, the highest level in the program, will retain their status for six years. Then, the math becomes daunting: spend $33,334 every two years or lose your perks. Carnival loyalists knew a change was coming. Speculation ranged from a modest increase in nights required to reach each level to status matching with Carnival brands like Princess and Cunard. Nobody expected such a dramatic set of changes. The new policy is a fundamental shift from emotional loyalty to transactional loyalty. It's a transition from, 'We value your lifetime relationship with our brand,' to, 'What have you done for us in the last 24 months?' Here's what Carnival got wrong from a behavioral standpoint: they're taking away something customers already own. Under the old system, a cruiser who sailed frequently over many years earned lifetime Diamond status based on nights at sea. That status felt earned, permanent, and emotionally valuable. Behavioral economists call this the "endowment effect"—once we own something, losing it feels much worse than never having it at all. Now Carnival is essentially telling these customers: "Thanks for your loyalty, but you need to pay up or lose what you've earned." President Christine Duffy's rationale reveals the core problem: "When everyone is special, no one feels special." This has been a problem with lifetime status on cruise lines. But the solution to having too many loyal customers isn't to make loyalty harder (or impossible for some) to achieve. It's to create meaningful ways to recognize different types of value. Here's what Carnival is really asking. To maintain Diamond status after their 'lifetime' status expires in 2032, customers need to earn 100,000 "stars" every two years at three stars per dollar spent. That's $33,334 in cruise spending every 24 months, or roughly $16,667 annually. For context, a typical week-long Caribbean cruise for two in a balcony cabin runs about $2,000-4,000 total. To hit Diamond spending requirements, a couple would need to take premium suites on longer cruises, book more than a couple of trips per year, or spend massively on add-ons like specialty dining and excursions. This fundamentally changes who can be "loyal" to Carnival. Frequency and long-term engagement no longer matter. It's all about 24-month spend. Carnival justifies the change by comparing itself to airline loyalty programs, which reset annually. But this comparison misses a crucial difference: business necessity versus leisure choice. Most elite status flyers are business travelers. They must fly regularly and often don't pay their own bills. Their loyalty is driven by route networks, alliances and codeshares, schedules, and corporate contracts. As airline loyalty became transactional by shifting from miles flown to dollars spent, emotional attachment to the airline, if any, faded away. Cruise loyalty is entirely different. It's discretionary vacation spending driven by emotional connections to the experience, the brand, and, for some, the recognition that comes with status. When you make that recognition not only transactional but temporary, you risk severing the emotional bond entirely. To further underscore the change to a transactional relationship, Carnival is eliminating many of the emotional touchpoints that made status feel special. Gone are the Gold pins, VIFP logo gifts, luggage tags, and other small but tangible symbols of achievement. These items cost Carnival little to produce but carried significant emotional weight for many recipients. They replaced these with a complicated points system that feels more like a corporate credit card than a celebration of cruise enthusiasm. Indeed, spending on a Carnival-branded credit card is one way to earn status points. Ten years ago, Delta Airlines switched to basing its Skymiles points on dollars spent instead of miles flown. United and American quickly followed suit. Will other cruise lines copy Carnival's plan? Or, will they see this move as a gaffe that opens the door to stealing some of Carnival's most loyal customers? Notably, no other Carnival brand has announced a similar change. Perhaps Carnival wants to see what happens before adopting it corporate-wide. Royal Caribbean Group and Norwegian Cruise Line Holdings are Carnival's biggest competitors. They could solve their own problem of increasing numbers of elite cruisers by following Carnival's lead. Or, they could view this as a rare opportunity to siphon off some of Carnival's highest value customers. Royal Caribbean and Norwegian are the entry level brands closest in cost and demographics to Carnival. They could offer status matches to unhappy Carnival elite members, likely with less daunting requirements than Carnival's. I'd also recommend the use emotional messaging emphasizing "true loyalty recognition." This will play well with customers who feel their loyalty hasn't been reciprocated by Carnival. Even the airlines play this game. When Southwest Airlines infuriated customers by changing their free checked bag policy, Delta and American offered special status matches to attract Southwest's most elite flyers. Every CMO with a loyalty program should be taking notes as this plays out. Carnival is essentially running a live experiment on several key questions: Will customers pay to maintain status? Diamond members face a choice: dramatically increase spending or accept lower-tier treatment. How many will choose to spend versus switching to competitors? Or will they grit their teeth and keep sailing Carnival? Does transactional loyalty create real loyalty? By shifting from time-based to spend-based qualification, Carnival is testing whether purchased loyalty can replace earned loyalty. What happens when you break the loyalty contract? Customers invested years, even decades, building status under one set of rules. Changing those rules retroactively tests the limits of customer forgiveness. Can you shrink your way to exclusivity? Rather than finding creative ways to serve more loyal customers, Carnival chose to reduce the number of people eligible for top-tier treatment. Will artificial scarcity create more value than broader recognition? Carnival's changes don't take effect until June 2026. That's not that far off - many cruisers have already booked 2026 and 2027 cruises. Diamond members have special rules that may let them hang onto their status for longer. Perhaps not much will change right away. But, the real test is whether customers remain emotionally invested in the Carnival brand. Loyalty programs aren't just about perks and points. They're about creating an emotional relationship that makes customers choose your brand even when competitors offer better deals. By making loyalty purely transactional, Carnival risks turning its most devoted customers into brand-agnostic comparison shoppers. The next two years will tell us whether cruisers are willing to buy loyalty, or whether loyalty, once lost, is gone forever.
