As a consumer, you're no doubt fiercely loyal to certain brands. What's driving your loyalty often has to do with the ability of those brands to engage you – whether it's with unique offers or other efforts to appeal to you personally. But on the flip side, as a marketer, is your own brand doing enough?
It's a question that needs to be taken seriously, particularly in the COVID-19 era. Consumers are more cautious in their spending now, and will likely be well into the future, given economic uncertainty and dramatic changes in shopping patterns. Companies that can build loyalty now and maintain it through the recovery will find themselves in a stronger position as we enter whatever “new normal” evolves over time.
Many consumers, however, feel that brands are lacking in their efforts to recognize them as individuals, according to a new study we released today. Brand Loyalty 2020: The Need for Hyper-Individualization takes the pulse of consumers when it comes to their relationships with brands and underscores how businesses can build and strengthen individual customer relationships through personalized experiences.
We’ve seen customer loyalty rise to new heights over the past five years, but many brands are losing out because they are not proving their value by actively tailoring their marketing for a 1:1 approach. More than three-quarters of the consumers we surveyed said that they believe brands should be doing more to earn their loyalty, and that the more personalization tactics a brand uses, the more loyal they are to the brand.
Loyalty programs are a good starting point; 73% of consumers indicted they're more likely to engage with a brand that offers one. But simply having a loyalty program isn't enough. Consumers want the brands to engage with them as individuals.
What we found, though, is that macrosegmentation and microsegmentation – basic customization tactics – don’t provide the relevance and value consumers crave. They want brands to understand their unique desires, and reach out to them with offers, promotions, rewards or other communications designed especially for them. In exchange for these hyper-individualized offers, 81% of consumers said they'd be willing to share more personal information – a coup for marketers – with the brand.
The bottom line: The more a brand engages with consumers on an individual level, the more those consumers will engage with that brand. That translates into real results. Our studies have shown that 93% of organizations that invest in advanced personalization strategies increase their revenue.
So how is your company doing when it comes to hyper-individualized marketing? I invite you to download our new report and take the quiz at the end to find out if you're a personalization straggler, follower or innovator.