Research Says CX Quality Has Reached an All-Time Low. Can Loyalty Programs Save It?

Recent research published by The Wall Street Journal leaves no doubt — U.S. consumers’ perception of CX offered by global brands is lower than ever. In fact, it’s now the worst it’s been since the Forrester CX Index was first created. 2024 marks the third year in a row when the perception of customer service quality keeps on dropping. Is there anything brands can do to turn that tide?

What’s a Customer Experience Index?

Forrester’s Customer Experience Index (CX Index™) is a metric designed to assess the quality of customer service and loyalty levels. It’s an annual survey covering nearly 500 brands across 14 industries, giving us insights into what modern customers think of their experience. This year, the results seem grim, with 39% of brands reporting a decline in service quality, compared to just 17% in 2023. The average decline in 2024 was 3.9 points, surpassing the previous record of 3.6 points from last year. The overall CX Index score is now at an all-time low of 69.3, with the previously lowest reported in 2017 at 69.6.

Why Is Customer Satisfaction Declining?

The decline in customer experience is undeniable, but is it really about lower quality or higher expectations?
Increased consumer standards are definitely at play here. As technology grows more complex, clients demand even faster, more seamless, and more personalized interactions. What was once a novelty, like a 24/7 chatbot to deal with queries, has now become a regular – or maybe even outdated – tool. Customers have grown used to technology being ever-present and are far more difficult to impress.

Additionally, cost-cutting measures taken by many companies in the past years in order to stay afloat in the face of fierce competition, paired with high turnover and inadequate training among support staff, may have contributed to weaker customer service infrastructure, degrading the overall quality of the customer experience.

So, how can these challenges be overcome? Below, we’ve listed 5 ways that loyalty programs can help tackle the growing number of dissatisfied customers.

5 Ways Loyalty Program Can Improve Customer Experience

Personalized offers and rewards

One surefire way brands can make customers warm up is by showing some care.

84% of consumers say being treated like a person, not a number is very important to winning their business.

That’s where loyalty programs can help. After all, they’re based on personalization, which is a great tool for showing your customers that you actually know them.  By leveraging customer data, companies can tailor promotions and rewards to individual preferences and purchase histories. 

For example, a customer who frequently buys coffee might receive a special discount on their favorite brew. This personalization makes customers feel understood and valued, increasing their satisfaction and engagement. 

Better communication

The most successful brands thrive on the right type of communication. It’s what gets their message across and builds their image as a trustworthy choice. 

Effective communication is also essential for a positive customer experience. Loyalty programs can facilitate it through regular updates on points balance, exclusive offers, and upcoming promotions that keep customers informed and engaged. 

Clear and consistent communication about how to earn and redeem rewards helps prevent confusion and frustration. Additionally, personalized messages that acknowledge milestones, such as birthdays or anniversaries, can make customers feel special and appreciated. 

By maintaining open and proactive communication, businesses can build trust and ensure that customers are aware of all the benefits available to them through the loyalty program.

Building engagement and emotional connection

No brand will be at the top forever; chances are, there’ll always be a company with more interesting products, better prices, more convenient locations, or trendier packaging to offer. 

That’s why the key to long-lasting customer satisfaction is building relations supported by emotions. Like in real-life relationships, if your clients have a genuine bond with your brand, they’re less likely to simply jump ship whenever something better comes around. 

And again, loyalty programs can help with that. By offering rewards and recognition for repeat business, companies can foster a sense of belonging and appreciation. Emotional connection is strengthened when customers feel that the brand values their loyalty and goes the extra mile to provide a rewarding experience. 

Special events, exclusive access to new products, and personalized interactions – all this stuff contributes to creating and strengthening the emotional bond, which encourages customers not only to remain loyal but also to voice their positive experiences more strongly. 

Enhanced problem resolution

Loyalty programs can significantly improve problem resolution, a critical aspect of customer experience. 

Members of loyalty programs often receive prioritized support, which means their issues get addressed more quickly and efficiently, ultimately increasing their satisfaction. 

What’s more, loyalty programs have the superpower to turn a negative experience into a positive one by offering loyalty points or other rewards as compensation in case any problems (inevitably) arise. 

Enhanced problem resolution not only resolves immediate issues but also reinforces customer trust and loyalty, making them more likely to continue their relationship with the brand.

Exclusive access and VIP treatment

While we’d all like to think we’re immune to it, everyone enjoys a bit of flattery. Your customers are no different. Like it or not, some special treatment is often what can make them stay on your side when times get rough. 

After all, it’s hard to complain about a brand when you’re out on their limited-edition shopping spree.

Exclusive access and VIP treatment are powerful loyalty programs’ incentives that elevate customer experience and make clients feel special. By offering members early access to sales, special events, or limited-edition products, you can easily create a sense of exclusivity and privilege, enhancing their general brand satisfaction.

For example, a fashion retailer might invite top-tier loyalty members to a private preview of a new collection. These exclusive opportunities not only reward loyal customers but also encourage continued engagement and spending. 

How can Comarch help?

The techniques described above are just a few ways that loyalty programs can make customers warm up to a brand again.

If you need more help boosting your customer experience and satisfaction through a powerful loyalty program, check out the Comarch Loyalty Marketing Platform. 

It’s a robust set of AI-driven tools to design, build, and create comprehensive loyalty programs that your business needs in the more demanding than ever customer landscape.