Out-of-Sector Lessons for Building Customer Loyalty & Implications for the Arts
August 2024
This article is related to a recently completed custom research project conducted on behalf of an ABA member. Our research team is always delighted to speak with members about tailoring research projects to your organization. To learn more or submit a custom research request, simply contact your member advisor or email us at info@advisoryarts.com.
How are other sectors building their customer loyalty strategies? How do they segment and target different audience groups to foster repeat purchases and loyalty?
These questions, from a performing arts organization in the ABA membership, led to a 2-part research study consisting of an initial secondary research report and analysis on corporate loyalty programs, followed by a qualitative research report comprising of 5 interviews with for-profit organizations across diverse sectors, including luxury retail, airlines, hotels and gyms.
Findings from the qualitative report include:
Customer value: Organizations look at customer value and spend to determine how they should be cultivated. They will invest in more costly and resource heavy tactics to attract and retain their highest value/spending customers.
Spend-based reward: When designing formal loyalty programs, many organizations are shifting to a direct spend-based system to encourage not only repeat purchases, but also greater spending on single purchases to receive rewards.
Allow time for programs to mature: Loyalty efforts, especially more formal loyalty programs, take time for customers to adopt and adapt to. Typically, it takes two years for points-based systems to start generating revenues.
Members can download the combined report (part 1 and 2) by clicking below.
