Yotpo, a provider of eCommerce marketing platform, released its annual brand loyalty survey examining American consumers’ sentiment towards brands. The survey also examines the role of rewards programmes in harnessing and cultivating that loyalty.
“This year’s data showing continued strong brand loyalty among consumers supports the idea of a brand renaissance. This is the phenomenon fueling the rise of direct-to-consumer and growth of the eCommerce industry,” said Tomer Tagrin Yotpo CEO.
“But the study also reveals that loyalty is hard won. Most consumers consider themselves loyal to only a handful of brands. To win, brands need to stay at the top of their game by offering amazing products at a fair price. They also have to create valuable experiences worth coming back to. The survey shows that even loyalty programmes need to excite to drive engagement.”
In the survey of over 2,000 consumers in the US, nearly 9 out of 10 professed loyalty to brands. Nearly a quarter (24.82%) saying they’re in fact more brand loyal this year versus last.
Yotpo’s 2018 survey found a fifth of consumers saying they’re more loyal, marking a 27.9% uptick in this segment. This supports Tagrin’s suggestion that the shift to direct-to-consumer (D2C) efforts are powering a brand renaissance. The D2C approach isn’t just for digital natives. It also increasingly adopted by established brands who understand that every channel impress consumers so that they’ll keep coming back.
Consumers care about brands
Nine out of 10 (90.2 percent) consumers consider themselves equally or more brand loyal compared to a year ago. Asked to define their brand loyalty, consumers polled overwhelmingly characterised it as repeat purchasing (67.8%). This was followed by “love” for the brand (39.5%), and finally, preference despite price (37.7%).
Consumers that are loyal to a brand are more than willing to refer that brand (59 percent) to their friends and family. They are also willing to spend more with that brand (36 percent) eschewing Amazon or cheaper options.
Brand loyalty needs to be earned and re-earned
What hasn’t changed in 2019? It still takes a lot of purchases to cultivate loyalty. Before considering themselves loyal, shoppers need to buy from the same company:
- Five or more times (36 percent compared to 37 percent in 2018).
- Three times (33 percent, no change).
- Four times (17 percent, no change).
- Two times (13.2 percent compared to 12.4 percent in 2018).
Impact of brand loyalty to holiday shopping
New for 2019! Consumers are more likely to do their holiday shopping with brands they love (41 percent). The majority find customer reviews helpful (80 percent) when researching or shopping for gifts online.
Yotpo’s 2019 State of Consumer Loyalty presents findings from a survey of 4,200 US adult (18+) consumers, conducted by Pollfish for Yotpo in October 2019.
Enterprise Times: What this means for business?
The Yotpo report highlights growing focus on Direct-to-Consumer (D2C) experiences are potentially driving a renewed affinity for brands. All members of the retail industry, including brands and retailers must demonstrate they understand customers on an individual level. In addition, retail industry must integrate seamlessly into their daily lives.
Last month Salesforce launched a report which explained why some retailers thrive and other close down. The most innovative retailers watch shoppers’ evolving preferences and behaviours — and evolve along with them. The key remains understanding customer needs. Thereafter managing and cultivating that relationship, so that ultimately, those customer become your brand advocates.
Yotpo CEO suggest this year’s report shows continued strong brand loyalty supports the idea of a brand renaissance. This suggestion maybe premature. According to many analysts far too many brands still struggle to get basic website design right. User engagement and a serious understanding of customer experience still remain as work in progress for many enterprises.