Consumer Study Reveals Why Loyalty Pays for Retail Brands

By: Kevin Behan
Published: October 15th, 2024

A recent consumer research report revealed the importance of customer loyalty and consumers’ thoughts about 200 retailers, restaurants, banks, and other top brands.

Messaging and loyalty platform Marigold released new consumer research evaluating what drives customer relationships and purchases for 200 global brands. The report ranks brands based on personalization, omnichannel experience, trust, and loyalty. Consumers indicated three factors in their purchase decisions that are more important than price - trust, brand loyalty, and cross-platform consistency.

Here are some of the primary takeaways from Marigold’s new Relationship Marketing Trends: Brand Rankings Report:

• While 60 percent of consumers are pessimistic about today's cost of living, nearly 70 percent of consumers say they will pay a premium for brands for which they feel a sense of loyalty. 
• Although 62 percent of consumers say their favorite brand treats them like individuals, 40 percent are still frustrated by irrelevant brand content and messages. 
• The strongest brands create consistent customer experiences across channels, as 24 percent of consumers say they prioritize a consistent digital experience over price when making purchase decisions.
• Over half of consumers (57 percent) say their favorite brands use their data in a way that makes them feel comfortable.

The research surveyed 21,700 consumers from the USA, UK, and France during July and August 2024. Respondents rated brands on a 1 to 5 scale across four categories: personalization, omnichannel experiences, trust, and loyalty. Scores were indexed on a 0-100 scale, and the overall relationship score was the average of these four categories. Screening questions ensured respondents had engaged with the brands in the past year through various channels.

The report showed some additional consumer insights about personalized messaging, brand reputation, and loyalty, including:

• Personalization is essential but often lacking: Despite its importance, many brands still fall short in personalization, with 40 percent of consumers frustrated by irrelevant content and 33 percent feeling their needs are unmet by brand messages. Brands must leverage customer data effectively to deliver timely and relevant content.
• Zero-party data (ZPD) is the key to increasing personalization: Retailers, in particular, are zeroing in on zero-party data (ZPD) strategies to reward customers for engaging in surveys and polls to deliver highly personalized offers and experiences.
• Omnichannel experiences engage loyal customers: Brands must provide consistent and seamless experiences across all channels. Twenty-four percent of consumers say they prioritize a consistent digital experience across channels over price when making purchase decisions.
• Trust is fundamental for relationship-building: Trust is essential for collecting personal data and fostering brand loyalty. Over half of consumers (57 percent) feel comfortable sharing data with their favorite brands, and 49 percent consider brand reputation more important than price when purchasing.
• Loyalty programs drive long-term engagement: Effective loyalty programs differentiate brands and foster customer retention. With 68 percent of consumers willing to pay more for brands in which they are loyal, investing in these programs is crucial for long-term success.Despite placing a high value on brand loyalty, these sentiments can be fickle. According to the survey, 37 percent of consumers switched away from or became less loyal to a brand they purchased from in the last year.

Fortunately, there are ways in which brands can win back customers that are easily controllable for marketers. Half of the survey respondents said they could return through more attractive discounts or coupon codes, while 41 percent said better customer service.

Another way in which brands can more effectively reach customers is through personalized messaging, as 79 percent of the respondents said they are more likely to engage with personalized emails tailored to their interests. Nearly half (40 percent) of consumers say they are frustrated by irrelevant content or brand offers, and another 33 percent take issue with brand messages that fail to address their wants or needs.

The full Relationship Marketing Trends: Brand Rankings Report, which includes brand rankings, can be downloaded HERE.

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