by Marketing Charts
People want their loyalty to brands recognized. So finds Cheetah Digital in its 2022 Digital Trends Report [download page] produced in association with Econsultancy. In fact, about 1 in 3 feel frustration when they receive messaging that doesn’t recognize their shopping or loyalty history, per the report.
The study examines different reasons why consumers have a favorite brand, finding that 78% have one as it rewards them for their loyalty. This brings to mind recent research that found an increase in customers who expect to be recognized and rewarded for their loyalty. This is important given that even during the pandemic, consumers are still showing signs of loyalty towards their favorite brands. Indeed, the Cheetah Digital report finds a substantial increase in the share of consumers who would feel closer to a brand if it provided extra value to them to stay loyal.
Aside from being rewarded for their loyalty, consumers also credit their favorite brands with providing a consistent customer experience (80%). This aligns with prior research in which XM Institute was able to identify a link between the quality of customers’ experiences and their propensity to engage in behaviors such as purchasing more from a company, recommending the company, forgiving a bad experience and trusting the company.
Likewise, data trust is important, as 3 in 4 (74% of) consumers surveyed claimed to have a favorite brand as it uses their data in a way that makes them feel comfortable. Understanding this, marketers are engaging in a variety of practices to try to build trust in their data privacy protections, including promising not to sell information and seeking informed consent.
Developing Relationships with Brands
Some 7 in 10 consumers surveyed for the report said that they have a favorite brand as it strives to develop a relationship with them. Communication is key in this respect, so it’s interesting to see that 51% describe the relationship with their favorite brand as it communicating with them as and when necessary. This suggests that personalization is important in order to gain an understanding of consumers’ preferences. Where such initiatives fall short with consumers is when they receive irrelevant content or offers (with 49% reporting frustration at this), when messaging doesn’t reflect their wants and needs (41%), or when they received messaging based on information about them that they hadn’t shared directly with the brand (35%), a nod back to data privacy protections.
There are some brand messaging areas to which consumers seem particularly open. Respondents say they either receive the right amount of messaging or would even be open to more concerning loyalty programs (71%), discounts (70%), VIP offers (68%), and brand values (65%), among others.
As for loyalty drivers, great products/services represent easily the top reason among those listed, a result in line with several other pieces of research. Beyond high quality products and services, consumers also say they’re loyal to certain brands because they feel safe to buy from, because they like the brand’s loyalty program, and because they trust the brand to treat their data with respect.
On the other side, some consumers report leaving a favored brand because other ones had better promotions or buying options, because they didn’t feel valued as a customer, or because of the brand’s stance on social, political, or environmental issues.
Article originally appeared on Marketing Charts.
Interested in learning about V12’s suite of marketing and audience solutions to help you target and convert today’s consumers? Click here to learn more.
YOU MAY ALSO BE INTERESTED IN:
- What brands can do as inflation adds to consumer woes
- Here’s How CMOs Are Going About Improving Digital Marketing Performance
- What is new mover marketing and how to get started
- How Brands Can Connect with the Influenced Consumer
- Young E-Commerce Shoppers Say They’d Pay A Premium for an Improved Online Experience