The Forrester Wave™: Loyalty Services, Q2 2024

Loyalty Services Vendor Product Comparisons 2024

Key features and pros and cons of top Loyalty Services products:

Kobie - Leaders

Pros:

Delivers loyalty outcomes with extensive data-backed methodologies
Distinct vision centers around customer/brand value exchange
Robust and readily available network of tech, CX, and rewards partners
Strongest current offering among providers evaluated
Excellent capabilities spanning CX and org design, offer management, and personalization
Uses 'Triple Play Data' approach combining emotional, transactional, and behavioral customer data
Sophisticated methodologies particularly for analytics, insights services, and data processing
Proprietary approach to measuring and optimizing emotional loyalty backed by expansive use cases

Cons:

North American and European footprint limits global delivery capabilities relative to other providers
Technology consulting capabilities don't explicitly address people and process changes

Bond Brand Loyalty - Strong Performers

Pros:

Proprietary Customer Engagement Index for measuring customer engagement
One of the more mature approaches to addressing emotional loyalty
Most forward-looking approach to consumer privacy among competitive set
Invests in innovation through Bond Behavioral Institute
Deep consumer behavioral and emotional understanding
Flexible pricing models that clearly address cost overrun handling

Cons:

Loyalty vision of future market disruptions lacks detail relative to competitive set
Lacks hubs in APAC and has relatively smaller footprint for global delivery
Refocusing offerings to design broader enterprise loyalty strategies but has relatively few clients currently using enterprise loyalty strategy design services
Campaign measurement doesn't support cross-channel attribution
Marketing mix modeling method lacks clarity

Capgemini - Strong Performers

Pros:

Excels in loyalty program and CX design
Strong emphasis on consumer values and sustainability in loyalty frameworks and methodologies
Prioritizes employee values and purpose in talent strategy
Strong emphasis on equitable value exchange between brands and consumers
CX consultants in more than 30 locations supporting global delivery
Vision of 'money, magic, and mechanics' working together to deliver memorable CX

Cons:

Approaches don't effectively address importance of brand employee engagement and alignment
Lags in day-to-day loyalty marketing mechanics (customer data processing, loyalty measurement, rewards management, campaign and offer design/execution)

Publicis Groupe - Strong Performers

Pros:

Excels in enterprise loyalty strategy design services
Focus on data and insights helps brands create value exchange embraced by consumers and C-suite stakeholders
Comprehensive technology consulting expertise supports strategy execution
Office hubs around the world with strong project methodology connecting client activities
Ability to design and deliver future-looking global loyalty initiatives
Vision for 'connected loyalty system'
Positions identity resolution as foundation of client transformation approach

Cons:

Doesn't address employee empowerment or purpose as explicit part of talent strategy
Overall approach to strategic business case development narrowly focuses on loyalty programs
Despite 'Power of One' delivery methodology, has not yet integrated loyalty offering enough to execute holistic vision

The Lacek Group - Strong Performers

Pros:

Over 30 years of loyalty experience
One of the strongest partner ecosystems among competitive set
Manages many clients' other loyalty ecosystem alliances
Culture of innovation through strong investment and proprietary processes and tools
Excels in helping clients address rational and emotional needs of consumers and employees
Total Customer Value framework quantifies impact of customer and employee experiences
Excellent loyalty program design capabilities accounting for customer emotions, values, and changing behaviors
Strong campaign design approach incorporating insights from marketing and advertising channels

Cons:

Vision lags many providers because it lacks future orientation
Data services lacking in areas such as identity resolution, customer lifetime value analysis, and journey analytics

Concentrix - Contenders

Pros:

Holistic vision for loyalty as 'connective tissue of the brand'
Investments in proprietary accelerators that drive interactions
Robust talent strategy prioritizing employee values, well-being, recognition, and empowerment
Sound support for designing enterprise loyalty strategies connecting business results to CX
Solid customer and employee engagement, program design, and personalization services

Cons:

Partner ecosystem less broad and deep than competitive set, lacking fulfillment and experiential rewards alliances
Lags in broader APAC region
Loyalty services focus largely on structured programs
Could enhance services by explicitly incorporating customer emotion insights
Lacks identity resolution and regular ROI tracking capabilities
Lags in customer data privacy with compliance-driven approach

Material - Contenders

Pros:

Most sophisticated capabilities for data science, analytics, and insights
Excellent loyalty measurement and optimization using both cross-channel attribution and marketing mix modeling
Substantial use of AI to support propensity modeling and calculating customer lifetime value
Business case and CX design services clearly link business and customer value together
Global reach supporting North America, Europe, Southeast Asia, Japan, Australia, and New Zealand
Approach rooted in behavioral science and analytics

Cons:

Vision does not specify clear path for delivering value to consumers
Innovation plans don't clearly align with vision and lack specificity
High turnover rates in support staff and project management challenges
Methodologies for loyalty program design and customer engagement prioritize appeal for business over consumers

PwC - Contenders

Pros:

Most robust business case capabilities in evaluation
Brings business case expertise into many loyalty services
Offers both cross-channel attribution and marketing mix modeling for loyalty measurement
Strongest approach to technology performance management, explicitly tying it to business value
Talent strategy focuses on employee well-being and development
Global provider with strong methodologies and financial prowess
Strong approach to project management

Cons:

Vision does not address emerging trends in customer loyalty
Doesn't clearly articulate how loyalty services fit into broader PwC ecosystem
Lags in many integral loyalty offerings
Customer engagement services lack specific techniques for improvement
Loyalty program design doesn't directly refer back to strategy, vague focus on value exchange
Campaign and offer design based on playbook of predefined offers and doesn't extend to full day-to-day support

FAQs

Q: Which vendors are Leaders in 2024?

A: Kobie

Q: What does "Leader" mean in Forrester Wave terms?

A: Leaders in the Forrester Wave evaluation are vendors that demonstrate the strongest current offerings and strategies in the loyalty services market. They excel across evaluation criteria including enterprise loyalty strategy design, data science and analytics capabilities, customer experience design, innovation, partner ecosystems, and ability to deliver versatile, visionary services that empower brand agility. Leaders position loyalty as an enterprise-wide priority, incorporate behavioral science and human-centered design, and help clients maximize speed and agility in loyalty planning and implementation.

Q: How do I interpret a Forrester Wave?

A: https://www.forrester.com/policies/forrester-wave-methodology/

Report:

Top Vendor Products for Loyalty Services in 2024

Loyalty Services Vendor Product Comparisons 2024

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FAQs

Q: Which vendors are Leaders in 2024?

Q: What does "Leader" mean in Forrester Wave terms?

Q: How do I interpret a Forrester Wave?

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