Products and prices keep consumers’ loyalty rather than services.
Yotpo conducted a survey last year on brand loyalty and the results have shown that 90% of consumers considered themselves as brand-loyal. This contrasted the thinking that loyalty was dead. Yotpo, a user-content generation app, conducted a survey this year from 2,100 adults and 89.1% said that they were still brand loyal.
Top drivers of brand loyalty
Many marketers believed that customer service is their primary loyalty driver. They said they can engage more clients in creating effective customer service. The esults, however, have shown that customer service only comes third on the ranking list.
The following are the results of the top loyalty drivers according to the survey:
- Product ( 78%)
- Price (63%)
- Customer service (26%)
- Loyalty program (22%)
- Shopping experience (17%)
- Connection to a charity or cause (9%)
- Ads/marketing (4%)
- Other (2%)
Quality products at a cheaper price are still the best boosters for loyalty to brands. The survey results give marketers an idea of the things they need to improve in their company. Marketers have to invest more in their products and prices before they try to invest in their customer service.
What does being brand loyal mean to you?
The respondents’ top responses were the following:
- I tend to buy from the same brand (67%);
- I love the brand (39.5%)
- I buy from the brand despite cheaper competitors (37.7%)
The phrase “I tend to buy from the same brand” suggested softness and shows that loyalty for many is a function of inertia. Approximately 87% of respondents said that a customer who purchased for the same company at least three times can be considered someone loyal to the brand. While the other 36.4% considered themselves loyal if they purchased at least 5 times. These results have been consistent from last year’s survey.
Loyal customers resisted some marketing objectives
Some marketing objectives are found to be ineffective when respondents are asked about the things they like for brands to do. Customers resist common objectives such as signing up for emails, following on social media, or submitting reviews.
However, joining a loyalty program, referring brands to others, and spending more on cheaper products has been found to be the most effective marketing strategies there is. This shows brand loyalty is still alive. This helps marketers to be more productive in the strategies to be used to increase their revenue.
Marketers that want true loyalty will have to do more. It is not enough to have a competitive product key alone. Steps such as leveraging loyalty programs, shipping perks, and outstanding services are essential tools for customers to stay loyal.