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.

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Meet Norman

You will have read plenty about ‘the new normal’ now allow me to introduce the New Norman.

TLC Marketing’s Planning team have been sifting through the latest research reports to understand how customer behaviour will be affected after lockdown and more permanently in the long term.

They have wrapped all their findings up into one pen portrait; your new best mate, Norman. Norman represents the average British customer after lockdown; their concerns, changes in their purchasing behaviour, how they shop and where they shop.

One thing we know for certain is that uncertainty will rule. For more than 10 weeks Norman has been at home with restricted access to the outside world and very different circumstances to life as we usually know it. As those restrictions are slowly lifted it is natural that he will still be cautious and won’t be rushing to return to pre-pandemic routines.

Brands too will be adapting and recovering after the storm. Once they recognise Norman’s mindset brands can react. By rewarding him with a choice of rewards to enjoy in the safety of his own home or the option to venture out. It’s all about giving the customer the decision, so they can do what feels most comfortable to them.

We can help brands react by understanding Norman’s new priorities and how rewards can influence post-pandemic behaviour. So, we can work together to create happy customers who favour brands who truly helped and achieve great results for brands in this new landscape.

For a full copy of The New Norman eBook get in touch lets.talk@tlcmarketing.com

About TLC Marketing https://www.tlcmarketing.com/

TLC Marketing is The Original Rewards Company. Founded in 1954, we are the world leaders in bringing brand stories to life through customer rewards provided by our incredible national networks and brand partnerships. If a brand talks about beautiful hair, we can provide a free haircut with every purchase. Or if they promote a healthy lifestyle we can treat every single customer to a free fitness or wellness session. We call this approach turning brand storytelling into story doing because we know actions speak louder than words.

With offices in 14 markets, we apply storydoing from New York to Sydney offering customers the experiences they love. Working with the biggest brands in the world including McDonald’s, Nestle, Unilever, H&M, Samsung and many more to help them achieve amazing results.

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The post How have consumer shopping habits changed since the lockdown? Part 1 appeared first on IPM Bitesize.

16th April 2020 –  Klarna, the leading global payments provider enabling over 85 million consumers worldwide to pay later in-store and online analyses the psyche of consumers purchasing habits and what retailers can do to stay relevant in a post-Covid-19 world.

In its Fast-track Upturn report, Klarna outlines how retailers must think differently to keep customer acquisition costs, low while increasing Customer Lifetime Value (CLV). The report details how current CLV calculations are outdated and how smart partnerships with trusted third parties are playing an increasingly critical role, allowing retailers to reinvest marketing budgets for maximum value.

Emotional connections

Building an emotional connection with your audience, something that many brands struggle to achieve, is of critical importance to both retaining customers and acquiring new ones. A third of consumers (33%) said that intelligent or humourous advertising would encourage them to visit a brand or retailer’s website or store, with two in five (39%) of those aged 16-34 age saying that smart and funny advertising was the factor most likely to influence them when choosing where to spend. However, traditional digital marketing solutions are increasingly frustrating consumers, with half (49%) saying that they get irritated when brands get personalisation wrong, and 59% stating their dissatisfaction when receiving targeted ads for items they’ve already looked at or purchased.

Word of mouth

Word of mouth has always been vital, but in the age of increased digital marketing spends, Klarna’s research found just how powerful personal recommendations remain. Three in five (60%) say that when they love a brand or retailer, they’ll actively try and convert their friends. The factors that make consumers most likely to recommend a brand include an enjoyable in-store experience (16%), a good user experience across all devices and channels (15%) and a good returns process (14%).

Customers want to be acquired

Customer loyalty is a significant topic outlined in Fast-track Upturn. Klarna found that retailers cannot become complacent with existing customers otherwise they will migrate elsewhere. Two in five consumers (40%) say that they are loyal to a number of ‘loved brands’ they shop with to a certain extent, but only 3% say they wouldn’t shop elsewhere if they saw something they liked. Price remains king, with 58% of consumers saying that price plays a key role in deciding to use a new brand, but flexible payment options are also becoming increasingly important, with 18% of shoppers noting this would be a factor in trying out a new retailer.

In-store experiences

When the world recovers from COVID-19 and retail stores begin to open, the Fast-track Upturn report highlights the role that in-store experiences will continue to have in the future, especially when it comes to customer acquisition. 35% of consumers say that an enjoyable in-store experience would make them more likely to shop with a retailer, and 30% say that it would make them more likely to purchase more from them. Over a third also noted they would be more likely to shop with a brand or retailer that is associated with fun experiences. The importance of physical experiences is not lost on younger generations either, with one fifth of those in the Gen-Z audience noting they had their first interaction with a brand through a pop-up shop or physical experience. This age demographic were also the most likely to value additional in-store services such as Wi-Fi, food and drink and charging stations.

Laurel Wolfe, VP of Marketing at Klarna commented: “In today’s world, marketers across the globe are being challenged to think differently about how they approach customer acquisition and retention – especially in light of the current situation. Our report highlights the importance of selecting well-connected partners. An example is Klarna, who can fast-track acquisition with access to over seven million loyal customers in the UK to boost awareness and brand-love. By being strategic with their partnerships, retailers will see cost efficiencies, increased sales and the flexibility to redirect budget to areas where it could be better spent.”

Andrew Busby, Founder and CEO of Retail Reflections commented: “Across the retail spectrum there was no doubt that 2020 would be a crucial year, even before the impact of COVID-19. Outdated CLV models based on previous consumer behavioural insights will be unable to provide an accurate depiction of customer value, so marketers need to take a step back and look at an engagement-first approach. Retailers are increasingly recognising the importance of partnerships in order to adopt smarter ways to convert customers. In a constantly evolving market, It will be those who engage with the right partners and adapt to new changes who reap the customer rewards.”

For more information, please contact, Klarna@mhpc.com

About Klarna

We make shopping smooth. With Klarna consumers can buy now and pay later, so they can get what they need today. Klarna’s offering to consumers and retailers include payments, social shopping, and personal finances. Klarna has enabled over 85 million consumers to pay with ease and convenience. Over 200,000 merchants, including H&M, IKEA, Expedia Group, Samsung, ASOS, Peloton, Abercrombie & Fitch, Nike and AliExpress have enabled Klarna’s innovative shopping experience online and in-store. Klarna is the most highly valued fintech in Europe with a valuation of $5.5bn and one of the largest private fin-techs globally. Klarna was founded in 2005, has over 3,000 employees and is active in 17 countries. For more information, visit klarna.com

The post Retail Gain and Retain in a Post COVID-19 World appeared first on IPM Bitesize.

April 2020, ZEAL Creative, the UK’s most effective brand activation agency, has launched a new strategic white paper exploring how the Coronavirus pandemic has affected UK grocery shoppers.

‘Brand activation in the Age of COVID-19’ identifies how lockdown has already affected shopper behaviour and the impact it is having on food brands. The white paper also offers strategies for grocery brands to implement to meet shoppers’ needs in this new retail environment.

Key findings from the report include:

• Shopper decisions are influenced by completely new factors
• Value vs. indulgence – economic uncertainty means shoppers seek value for essentials but everyday treats and luxuries have replaced cinema trips and dining out
• When choosing which store to visit, the range has become a key driver, alongside the price
• Grocery shopping is emotional therapy and the ‘value’ of food changes for shoppers

With limited availability already encouraging shoppers to try different products, brands have greater responsibility and are presented with more opportunities to engage new customers. As well as supporting shoppers, ZEAL explores how brands can convert consumers or drive existing customers to sample more products in the range and increase penetration.

Highlights for brands:

• Capture shoppers’ attention with clear product benefits that resonate with their current need states e.g. ‘Fresher for longer’, ‘Can be frozen’
• The emergence of new, and the resurgence of traditional, consumption occasions can reinvigorate brands and drive incremental growth
• Suspension of in-store POS and promotional media makes at-home engagement critical
• Supporting citizens including key workers and food banks is prized, as sustainability becomes less of a priority for now
• Recipe support and creative inspiration for new shared at-home meal occasions is a prime opportunity
• Every brand needs to think like a challenger and big brands can demonstrate true category captaincy

Callum Saunders, Head of Planning at ZEAL Creative, comments: “COVID-19 is the biggest challenge the grocery industry has faced since the Second World War. Our supermarkets have been thrust into the frontline and never before has there been more opportunity or responsibility for Britain’s grocery brands to step up and deliver for the nation.

“Our findings demonstrate how shoppers are behaving and the role retail brands can play in meeting their needs. This is time for brands to step up with deeds not just words. Get this right and not only will brands be playing their part but will be remembered by customers long after the pandemic recedes.”

For a copy of ‘Brand activation in the Age of COVID-19’ please contact ZEAL’s founder and Creative Director, Stewart Hilton: Stewart@zealcreative.com

For further information and media enquiries, contact Westgate Communications on zealcreativepr@westgatecomms.com or call 01732 779 087.

About ZEAL Creative

As the UK’s most effective brand activation marketing agency, ZEAL Creative delivers multi award winning campaigns for brands including Kellogg’s, Pringles, KitKat, McCain and Warburtons.

With unrivalled insight and expertise, ZEAL Creative helps bring brands to life, with campaigns that engage, inspire and motivate consumers into action at key moments on the Path to Purchase.

ZEAL ranked 40^th overall in The Drum’s Top 100 Independent Agencies 2019 and scooped seven awards at the Integrated Marketing Communications (IMC) 2019 Awards in Europe. The agency has also been ranked 47^th in Campaign’s annual list of the ‘Best UK Agencies to Work for 2020’.

Specialising in FMCG, ZEAL Creative consistently enables its clients to increase penetration, rate of sale and market share. www.zealcreative.com

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