Shocking loyalty statistics that will make you rethink your marketing strategy

Shocking loyalty statistics that will make you rethink your marketing strategy

Whether due to the rise of e-commerce, pandemic disruption, or other industry-specific factors, old patterns of consumer behavior no longer apply in the current market. According to Cheetah Digital’s recently released Digital Consumer Trends Index 2022, as many as 76% of UK consumers who define themselves as brand loyal say they would still buy from competitors if it were cheaper or more convenient. In this article, we look at the most critical consumer facts and statistics that are changing the way we approach customer loyalty today.

Today’s consumers are very opportunistic. And why wouldn’t they be? Thanks to advances in technology, they have all the tools to act on better offers or easier fulfillment options at their fingertips.

Moreover, modern consumers are also very protective of their data and how it is used. And they expect the brands they do business with to reflect their values. However, even this does not guarantee that they will swear loyalty.

It’s a lot to juggle for any brand. To help with the heavy lifting, we’ve combed through the results of Cheetah Digital’s recently released ‘Digital Consumer Trends Index 2022‘ to highlight the staggering statistics influencing customer loyalty today.

Habit vs Loyalty

70% — percentage of UK consumers who buy from the same company often but say they are not necessarily loyal to the company

Are your repeat customers loyal or just regular? Humans are creatures of habit and tend to stick to what they know and believe in the absence of any compelling reason to do otherwise.

Often brands will confuse habit with loyalty. But the two are definitely not synonymous: habits are developed and loyalty is earned.

In fact, 70% of UK consumers who make frequent purchases from the same company say they are not necessarily loyal to the company. Our report also points to that 76% of UK consumers who define themselves as brand loyal say they would still buy from a competitor if it were cheaper or more convenient do so.

Emotional and genuine loyalty is the result. This is a goal that can only be achieved by truly knowing and understanding your customers. And that comes from carefully nurturing every relationship you have. This means that every action, input and communication the customer receives should make them feel valued and respected.

An anti-trust product

110% — increase in consumers citing “the ability to understand me as an individual” as a brand loyalty factor compared to the same period last year

There are many factors that influence brand loyalty. However, what beats them all is the recognition of the individual. There was a 110% year-over-year (year-over-year) increase in consumers citing “the ability to understand me as an individual” as a brand loyalty factor.

Other drivers of loyalty are pretty simple and you probably already know, such as a great product or service (55%), great customer service (38%), a useful loyalty program (34%) and ease of use (31%).

This rise in conscientious consumerism, where customers proactively educate themselves about a brand’s corporate, ethical and environmental values, is also a growing driver of loyalty with staying power.

Of course, investing in these areas will ensure long-term returns and help you differentiate yourself from the competition. But there comes a point when a product can only be so good or so cheap. Finally, there must be another level of effort to keep consumers loyal after all other factors are equal.

That’s where relationships come in. It is vital to understand how consumers feel not only about the product they bought, but also about the experience they had when they bought it, including who they bought it from.

Customer Acquisition vs. Retention

40% — the percentage of consumers who would remain loyal to brands that provide additional value beyond product or price (a 67% increase over the same period last year)

When it comes to loyalty, the cheapest price isn’t everything. Brands that cultivate loyalty do so by creating emotional connections, fostering community and recognizing the customer as an individual.

Marketing departments are constantly working to come up with new and interesting ways to keep their customers engaged, retained and loyal in a world full of endless choices. In this new era, where the consumer is more digitally savvy than ever, traditional loyalty programs just won’t cut it. They are too transactional, stale and ineffective in significantly changing consumer perception and behavior.

Actually, just more than a third of UK consumers (35%) say they are not loyal to any brand because the brand has done nothing to foster their loyalty, although they are frequent customers. Brands need to do better than that. And they can stay in the good graces of consumers by offering more.

Things UK consumers say brands can offer in return for their loyalty:

  • Recognition
  • Reward points
  • Exclusive/early access
  • Personalized recommendations
  • Discounts
  • Contests
  • Community functions

Few companies would argue against the value of loyal customers. But there are too many spins trying to cultivate customer loyalty, using outdated and ineffective tactics. Fresh data on the rapidly changing mindset of today’s consumer is critical to ensuring an effective strategy 100% of the time.

These statistics are only the tip of the iceberg. Dive deep into more customer loyalty research, analysis and insights today by picking up your copy of Cheetah Digital’s 2022 Consumer Digital Trends Index. here.

About Cheetah Digital

Cheetah Digital is a provider of cross-channel customer engagement solutions for the modern retailer. The Cheetah Digital Customer Engagement Suite enables marketers to create personalized experiences, multi-channel messaging and loyalty strategies, supported by an engagement data platform that can adapt to the changing demands of today’s consumers. Many of the world’s top brands, including Starbucks, Hilton, The White Company, Levi’s and Williams-Sonoma trust Cheetah Digital to help them grow revenue, build lasting customer relationships and deliver a unique value exchange across the customer lifecycle. To learn more, visit www.cheetahdigital.com.

Are you interested in the world’s leading brands personally discussing such topics? Learn more about World Digital Marketing Forum (#DMWF) Europe, London, North America and Singapore.

Tags: Cheetah Digital, loyalty



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