Opinion from David Pearson CEO at SPARK
A recent study by Emarsys, into customer loyalty in the UK, revealed that over half of UK respondents had left a brand they’d previously been loyal to in order to save money. Clearly, inflation is having an impact.
So what does this teach us about customer loyalty going into 2023?
The Emarsys’ second annual Customer Loyalty Index, which includes a survey of 2,000 UK consumers, reports that seven in 10 of those surveyed said they would be more loyal to brands that offer incentives and rewards.
However, as Mark Choueke, retail expert and author of the index, commented: “To drive meaningful customer loyalty, customer-centricity is no longer enough. Brands and marketers must now aim for customer obsession. Marketers have to really get to know each customer and internalise their habits and preferences ……..”.
Easier said than done? Perhaps not.
Behavioural science is an area that is increasingly used by brands to connect with customers, determine their needs, and foster loyalty, and it really makes sense. Psychologists have demonstrated that 80% of the decisions we make are influenced by factors we are unaware of. So, ASKING consumers why they do something will only yield 20% of the truth. To discover non-conscious attitudes requires specialist research techniques with a scientific base.
Discovering what your consumers are not telling you is crucial to engaging with them, and will help you determine which rewards or offers are relatable to their personal needs.
If you want to increase brand effectiveness and customer retention throughout 2023, talk to SPARK about our innovative psychology tools and how our insights can ignite your marketing strategies.