brand loyalty

Building brand loyalty in the next generation of commerce

Believe it or not, a 16-year-old and his or her 56-year-old father are part of the same generation.

This generation isn’t defined by age. Rather, its members share the same attitude towards how to apply digital technology to their most mundane, everyday tasks – from finding a parking spot or the latest news headlines, to their food orders and package deliveries.

What really stands out is their shared view on shopping and commerce. They prioritize convenience and value an experience that extends far beyond the traditional path to purchase.

How marketers can build loyalty during a long purchase cycle

A key element for loyalty programs, especially in industries like retail and restaurants, is product purchase frequency. Frequently purchased products enable members to earn more reward currency and keep the product and the program top of mind.

Does that mean that products without a high rate of purchase frequency can’t implement a successful loyalty program?

They actually can, it just requires a little creative thinking and a different approach.

Just 15% of consumers believe it pays to be loyal to brands

Only 15% of British consumers believe strongly that it pays to be loyal to their favourite brands, according to a new survey by Epsilon.

However if brands can offer what consumers want – which half of respondents identified as being value and quality in the products or services they are offered – they have a good chance of encouraging customers to remain loyal.

The research, which was conducted among 419 British respondents, also shows that the recession appears to have made UK shoppers more frugal.

More than half (57%) of respondents said that they will shop around to find the best deal and just (15%) are prepared to pay the premium for luxury products and new-to-market products.

Looking at what drives repeat purchases, just over a quarter (28%) of British customers see rewards programmes as an incentive to secure their loyalty.

Is it the web or brands themselves that are eroding brand loyalty?

Last month we released research, covered on Econsultancy, which found that 90% of British consumers use a different travel provider every time they book a holiday, and that only 12% of respondents said they book with the same operator every time.

The results show that when it comes to booking holidays online, British consumers have little or no loyalty to travel operators. Is this diminishing brand loyalty just a natural result of a more open web or is it because brands are less adept at building relationships with web savvy visitors?

The lesser-blogged benefits of building brand loyalty

While I often argue that social media marketing is an excellent way to build brand loyalty, it occurred to me recently that the benefits of such consumer commitment may not be immediately obvious to all marketers.

Clearly, customers who are engaged with a brand are less likely to leave for a competitor. That is the main perk of consumer loyalty but some marketers may question whether that is enough to justify the effort (and therefore budget) needed to build those relationships. After all, that cash could have been spent on developing a new customer base.