Brand loyalty is lagging. Here’s how to catch up

According to Marigold’s new Relationship Marketing Trends: Brand Rankings Report, 37% of consumers say they switched away from or became less loyal to a brand they previously purchased from in the past year. While earning customer loyalty can be elusive, the report offers insights into effective tactics for achieving valuable long-term customer relationships.

New technologies come and go, and trends rise and fall. But if there’s one constant truth in marketing, it’s that a dedicated strategy to really get to know your consumers and win their loyalty has immense value potential.

There is perhaps no better barometer for a brand’s marketing success than the level of loyalty its customers feel. It’s the difference between jumping ship the second a competitor woos them and sticking by their favorite brand’s side.

Consider this – nearly seven in 10 consumers will pay more to shop with the brands they’re loyal to.

But loyalty can be fickle, and according to our just-published Relationship Marketing Trends: Brand Rankings Report, brand loyalty across the board is lagging. According to our customer survey, 37% of consumers say they switched away from or became less loyal to a brand they previously purchased from in the past year.

That’s a concerning trend. Fortunately, there are effective tactics for winning back loyalty and rebuilding the crucial sense of connection for long-term relationships.

Among the actions brands can take that consumers say could help win them back are:

● More attractive discounts or coupon codes - 50%

● Enhance the quality of products or services - 42%

● Better customer service - 41%

● Broaden its range of products or services - 29%

● Reconsider its stance on societal issues - 22%

Now, making more and better products and services isn’t a marketing function. That’s your core business. So we won’t delve into those here.

But the top-cited action is very much in the marketing wheelhouse – discounts and coupons. While these are important tactics of good marketing, particularly relationship marketing, price only goes so far. To make the most of this tactic, discounts or coupons must be attractive and specific to the products customers are interested in.

Consumers want personalization. They want to be treated like individuals. They’re frustrated with one-size-fits-all marketing and are willing to reward brands who can transcend that antiquated form of marketing with their dollars.

Nearly half (40%) of consumers say they’re frustrated by irrelevant content or brand offers, and that’s just in the last six months. Another 33% take issue with brand messages that fail to address their wants or needs.

Offering customers discounts on products that are not relevant to them will not help win them back. In fact, it may be what’s driving them away.

The solution is to get to know them better and learn what matters to them. That means personalization – 79% of consumers say they’re likely to engage with a personalized email tailored to their interests.

But, personalization requires personal data. That means paying attention to what customers are shopping for, what they buy, and what they save or express interest in. That’s standard first-party data.

Going further is simply asking customers what matters to them through surveys, games, quizzes and other experiences that make it clear their engagement will result in more relevant offers. That’s zero-party data.

The key to collecting zero-party data is a value exchange; customers receive real value in return for their data. Among the top rewards consumers find valuable in exchange for providing such information are:

Discounts or coupons - 95%

Loyalty points or rewards - 94%

Early or exclusive access to offers - 88%

A chance to win something - 83%

Unlocking content - 61%

Loyalty programs are an excellent vehicle for conducting these types of value exchanges. Interestingly the same percentage of consumers who say they’ve become less loyal to brands in the last year also say they’re more likely to participate in loyalty programs this year… at 37%.

Consumers today expect brands to understand their needs and anticipate their desires, rewarding those that succeed with their loyalty and trust. However, many brands struggle with personalization, creating consumer frustration and missed opportunities. This gap presents a critical chance for brands to re-evaluate their marketing strategies.

To learn more about these trends and see which brands are best at following and setting them, download our free Relationship Marketing Trends: Brand Rankings Report today and start establishing valuable relationships with customers.