The findings come from marketing trade body DMA, which started off by highlighting that engaged customers are better customers. The reasons for that are quite simple:(1) They buy more from you (2) They are more receptive to your marketing (3) They talk about your brand to friends, which backs up point two and generates free marketing As delightful as that may sound, however, there is no straightforward meaning of brand loyalty. In fact, there are four types of loyalty that consumers have towards businesses, which means that companies need to take this on board when pushing forward with marketing strategies. The four types of brand loyalty, according to DMA, are: (1) They love you: 40 per cent are “actively loyal” to brands across special and routine purchase. (2) They’ll cheat on you: 27 per cent are “actively disloyal” and have no allegiance to specific brands. (3) They want you to spice things up: 23 per cent are “habitually loyal”. That means routine items may be bought from you on a regular basis, but they’ll still scout about when searching for special goods. (4) They feel like it’s all fun and no commitment: Nine per cent are the opposite of group three. You’ve won their loyalty when it comes to special purchases, but routine purchases aren’t something you can offer. While data is a concern for some consumers. DMA found that customers are happy to share data – but only if they can benefit from it, receiving access to deals such as lower prices, loyalty rewards and special offers. Rachel Aldighieri, MD at the DMA, said: “Current engagement methods often seem clumsy, like ‘brand stalking’, where items follow a consumer around on web banners. “Instead, consumer data could be used in virtual or artificial intelligence systems. One example could be chatbots, giving brands a better way to use their data and consumers a more meaningful interaction.”
Read more on brand loyalty:
- Tiger’s UK MD: “You cannot expect customers to be loyal, it doesn’t exist”
- Three hidden forces that motivate customer behaviour
- Can a good reputation put my business in the shop window to investors?
Here are the most effective reward programmes in the world.Image: Shutterstock
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