Long Term Loyalty Is Gone 

Long-term loyalty is gone.

Your customers will trade loyalty for convenience, value, or status.

Consider Domino's. Even though they managed an A+ digital transformation in the 2010s, the company now faces a new existential threat. The enemy is no longer Pizza Hut; it's the new wave of food delivery companies like Uber Eats and DoorDash moving into its sector.

While these food delivery "aggregators" don't own their own kitchens, they do own the customer experience. They can analyze tons of customer data on food preferences and price elasticity. They then partner with "ghost kitchens"— commercial facilities that prepare meals from different cuisines (such as Chinese, Thai, Indian, and pizza) from a single physical location and different online brands.

This agility and data mean the Dominos of the world are about to get their butts kicked! Every company must constantly re-evaluate its business and monetization model and value proposition if they hope to survive.

Otherwise, it's easy to win one war but lose the next.


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Your POV

Where do you see the future of loyalty? What are you trading loyalty for? Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your AI and Digital Business transformation efforts. Here’s how we can assist:

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