Whether due to the rise of e-commerce, pandemic disruptions, or other industry-specific factors, old patterns of consumer behavior no longer hold true in today’s marketplace. According to the 2022 Digital Consumer Trends Index recently released by Cheetah Digital, even the 76% of UK consumers who define themselves as loyal to certain brands say they would still buy from competitors if it were cheaper or more convenient. In this article, we look at the most critical consumer facts and statistics that are changing the way we approach customer loyalty today.
Consumers today are very opportunistic. And why wouldn’t they be? Thanks to advancements in technology, they have all the tools to act on better deals or easier fulfillment options at their fingertips.
Additionally, modern consumers are also very protective of their data and how it is used. And they expect the brands they do business with to reflect their values. However, even that does not guarantee that they pledge their loyalty.
That’s a lot for any brand to juggle. To help you with the heavy lifting, we’ve combed through the results of Cheetah Digital’s recent publication’2022 Digital Consumer Trends Index‘ to highlight the eye-opening statistics affecting customer loyalty today.
Habit vs Loyalty
70%: The percentage of UK consumers who frequently buy from the same company, but say they don’t necessarily have loyalty to the company
Are your regular customers loyal or just habitual? People are creatures of habit and tend to stick to what they know and trust in the absence of any compelling reason to do otherwise.
Often, brands confuse habit with loyalty. But the two are definitely not synonymous: habits are developed, while loyalty is earned.
In fact, 70% of UK consumers who frequently buy from the same company say they are not necessarily loyal to the company. Our report also indicates that 76% of UK consumers who define themselves as loyal to certain brands say they would always buy from competitors if it was cheaper or more convenient do this.
Emotional and genuine loyalty is a result. This is a goal that can only be achieved by truly knowing and understanding your customers. And that comes from carefully nurturing every relationship you have. This means that every action, contribution, and communication a customer receives should make them feel valued and respected.
Product vs Trust
110% — Year-over-year increase in consumers citing “the ability to understand me as an individual” as a driver of brand loyalty
Many factors drive brand loyalty. However, the one that beats them all is the recognition of the individual. There was a 110% increase year over year (year over year) in the number of consumers citing “the ability to understand me as an individual” as a driver of loyalty to the Mark.
The other loyalty factors are pretty simple and probably ones you already know, like a great product or service (55%), great customer service (38%), a helpful loyalty program (34%) and convenient to use ( 31%).
This rise of conscientious consumerism, where customers proactively educate themselves about a brand’s corporate, ethical and environmental values, is also a growing and enduring driver of loyalty.
Of course, investments in these areas will ensure long-term returns and help you differentiate yourself from your competitors. But there comes a time when a product can only be so good or so cheap. Eventually, there must be another level of effort to retain consumers once all other factors have equalized.
This is where relationships come in. It is essential to understand what consumers think not only of the product they purchased, but also of the experience they had when they purchased it, including who they bought it from.
Customer acquisition vs retention
40% — The percentage of consumers who would stay loyal to brands that offer additional value other than product or price (a 67% year-over-year increase)
When it comes to loyalty, the cheapest price isn’t everything. Brands that build loyalty do so by creating emotional connections, fostering community, and recognizing the customer as an individual.
Marketing departments are constantly working to imagine new and exciting ways to keep their customers engaged, retained and loyal in a world filled with endless choices. In this new era, where the consumer is more digitally savvy than ever, traditional loyalty programs simply won’t cut it. They are too transactional, outdated and inefficient to significantly alter consumer perceptions and behaviors.
In fact, just more than a third of UK consumers (35%) say they are not loyal to a given brand because the brand has done nothing to encourage their loyalty, even if they are frequent buyers. Brands need to do better than that. And they can, by offering more, stay in the good graces of consumers.
What UK consumers say brands can offer in return for loyalty:
- Reward Points
- Exclusive/early access
- Personalized recommendations
- Community features
Few businesses would argue against the value of loyal customers. But far too many of them try to retain their customers using outdated and ineffective tactics. New insights into the rapidly changing mindset of today’s consumer are critical to ensuring an effective strategy 100% of the time.
These statistics are just the tip of the iceberg. Dive into more research, analysis and customer loyalty insights today by downloading your copy of Cheetah Digital’s 2022 Digital Consumer Trends Index here.
About Cheetah Digital
Cheetah Digital is a provider of cross-channel customer engagement solutions for the modern marketer. The Cheetah Digital Customer Engagement Suite enables marketers to create personalized experiences, multi-channel messaging, and loyalty strategies, underpinned by an engagement data platform that can scale to meet changing consumer demands. ‘today. Many of the world’s top brands, including Starbucks, Hilton, The White Company, Levi’s, and Williams-Sonoma, trust Cheetah Digital to help them generate revenue, build lasting relationships with their customers, and provide an exchange of unique value throughout the customer life cycle. To learn more, visit www.cheetahdigital.com.
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