Getting loyalty right in 2024
How valuable is customer loyalty? Well, according to the latest research published in the annual Consumer Trends Index Report, more than 6 in 10 consumers (63%) say they will pay more to shop with the brand they’re loyal to.
Global insights from Marigold in conjunction with Econsultancy, surveyed nearly 10,400 consumers from Australia and New Zealand, the Benelux Region, Denmark, France, Germany, Japan, Spain, Sweden, the United Kingdom and the United States.
The latest data indicates that consumers value relationship marketing strategies, personalisation and loyalty programmes and are willing to reward brands they love with a larger share of their wallet and repeat business if companies get these factors right.
In fact, 85% of consumers say their favourite brand treats them like an individual with 84% thinking personalised birthday offers are ‘cool’, while 81% think the same about product recommendations based on past purchases and 78% of consumers cite they are likely to engage with a personalised offer tailored to their interests.
With impulse buying waning, customers are doing more research before buying products and services. Quality (69%), convenience (59%) and customer service (45%) were listed as factors that are more important to consumers than price.
How brand loyalty can reduce the pressure of acquiring new customers
Brand loyalty opens the door for increased revenue opportunities among customers while reducing the pressure of acquiring new ones with 70% of consumers citing the following as either important or critically important to maintaining their loyalty – offers/promotions, choice and availability, customer service/support and data driven policies.
Those companies unable to secure loyalty are at risk. Even when a brand has a suitable product or service that commands more than just one-off purchases, loyalty isn’t a given.
In fact, according to the data, a whopping 68% of consumers say there are examples where they frequently buy from the same brand, but don’t actually feel loyal, emphasising the delicate purchasing behaviours that reinforces the critical importance of a dedicated customer retention strategy.
The demand for loyalty programmes continues to grow with 43% relying on loyalty programmes benefits when buying a new product from their favourite brand and a further 39% of consumers are more likely to engage in a loyalty programme this year compared to last.
Data privacy
Many retailers use offers triggered by cart abandons, purchase history or search history. The push for greater data privacy is making zero-party data even more important with 61% of consumers finding ads based on indirect tracking tools like third party cookies to be a ‘creepy’ marketing tactic, and what’s more, in late 2024, Google Chrome will disable third-party cookies.
Common features of successful loyalty programmes
Research indicates that the majority of consumers find value in:
- Discount/coupons (91%)
- Loyalty points/rewards (89%)
- Early access to offers (83%)
- A chance to win something (81%)
- Unlocking exclusive content (60%)
- Brand community (55%)
Almost 9 in 10 (88%) of customers claim their favourite brand rewards them for their loyalty, 85% ‘treats me’ like an individual, 82% say brands strive to develop a relationship, 77% ’surprises me’ with rewards they don’t expect and 75% say the brand makes them feel like a VIP.
When it comes to marketing and personalisation of offers to encourage sales and drive loyalty, email is the top marketing channels in purchase frequency with 50% of consumers having made a purchase from an email in the last year, compared to 48% for social media advertising, 43% social media posts, 24% for SMS messages and 21% for banner advertisements.
All this means there’s no shortage of campaign possibilities when it comes to resonating with consumers but choose your sales message wisely as real-time personalisation and dynamic content is key to helping elicit customers’ attention.
Further reading:
Customer loyalty crucial for brand success in 2024, new research suggests The Drum
Marigold’s 2024 Global Consumer Trends Index Marigold
