Consumer loyalty increases

27th July 2017 • News

Eighty per cent of consumers show some form of brand loyalty, according to the DMA’s 2017 Customer Engagement report.

The study, conducted by the DMA and Foresight Factory, with partners Emarsys, Epsilon, Feefo and Wiraya, found that the percentage of those who stay loyal for both routine and special purchases has risen from 40% in 2016 to 50% this year.

Eight in 10 consumers (81%) said they are willing to spend time researching products to get the best deals, while more than half (55%) of consumers agree that they tend to use the same brands/shops/sites without looking for alternatives.

Half of young consumers (51%) find it difficult to know which brands are trustworthy, compared to 43% of those aged over 65 years old. These younger shoppers also find it difficult to know which marketing messages they can trust – 52% of those aged 16-24 years old, compared to 38% of those over 65.

Scott Logie, Chair of the DMA Customer Engagement Committee and MD at REaD Group Insight, said: “Now in its second year, this report on the growing complexity of customer engagement and loyalty highlights that trust can be built in many different ways. To a certain extent, it can be bought through rewards and cashback. However, for sustainable loyalty and trust there is a need for brands to be more genuine, have strong values and be seen to live these values.

“The introduction of new technology could well become a bridge to help brands increase their emotional connection with consumers in what is becoming a very non-personal world. The appetite from consumers for new ways to engage appears to be increasing, but we’ll have to wait and see if this interest transitions into usage in the coming years.”

Alex Timlin, ‎VP Client Success at Emarsys, added: “It’s essential that brands recognise and value their customers now more than ever because loyalty has become a huge issue in the area of digital brands and personalisation. Consumers spend more and more of their time in digital brands like Google, Facebook, Instagram, Twitter, or Netflix, which has disrupted old engagement models. Personalised, behavioural ad targeting makes it ever more difficult – and expensive – to penetrate these ‘bubbles’. With people spending more of their time in fewer places and increasingly on mobile, brands must focus on fighting for share of mind rather than just share of wallet.”

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