Today’s customers are sharper, savvier and more selective than ever before. They expect relevance and personalisation, and for those that can’t deliver on a valuable customer experience, the impact on customer retention and churn can be severe.
Our latest research shows that a lack of unified customer intelligence is undermining loyalty strategies for 60% of businesses, making it difficult to deliver a personalised, value-driven experience. When customers don’t feel recognised or understood, they walk.
With 67% of business leaders believing they’ll lose customers over the next year if they don’t dramatically improve the customer experience, and 56% believing they’ve already lost them, brands are under more pressure than ever to deliver standout experiences.
The loyalty crisis
AND Digital’s newest research report, Know me or lose me, surveyed 250 C-suite and data leaders across businesses between £200 million and £2 billion in revenue in the UK. With accompanying opinion pieces from leaders who were instrumental in schemes like Tesco Clubcard and Nectar, we uncovered their challenges, fears and expectations around loyalty.
What we found was that although 53% said poor customer experience has already cost them millions, 57% stated they are still expected to improve customer experience without an increased budget.
Businesses know what’s at risk, but they’re struggling to keep pace. Whether due to budget constraints, or, as our research found, legacy systems and fragmented data, many are continuously falling short of what modern, intelligent customers expect.
Enter the intelligent customer
Customers now want experiences that are relevant and deeply personal. They’re value-driven and are quick to switch brands when expectations fall short.
Loyalty needs to be used as a strategic tool that encourages customers to engage more while feeling valued. Without understanding their end-to-end journey, it’s impossible for businesses to truly deliver a personalised brand experience. A connected customer experience demands a connected, customer-first culture, built on a foundational data infrastructure to provide real-time insights.
With 66% of businesses shifting budgets away from acquisition and towards retention, and 71% agreeing that data is the most important factor in delivering a high-quality customer experience, it’s a step in the right direction. With the right mindset, data and technology, brands can build real connections that last.
To succeed, it’s clear that loyalty needs to move away from being a simple points programme, to be a personalised, purpose-driven experience built on relevance and value.
The opportunity ahead
From composable platforms and AI tools to a unified customer view, the tools are there to help businesses better understand and serve their customers better. But technology alone isn’t the answer.
True loyalty comes from putting customers at the heart of everything – aligning teams, connecting data and delivering experiences that feel intuitive, personal and consistent at every interaction.
This isn’t about having the biggest tech budget. It’s about using what you have, creatively and strategically, to build meaningful, lasting relationships.
Because today’s customers are saying one thing loud and clear: know me, or lose me.
Explore the full Know me or lose me report to uncover:
1. What’s driving the loyalty divide
2. How AI and data can unlock intelligent CX
3. Expert insight on how to build deeper, longer-term customer relationships