Most consumers say brand loyalty is about feeling understood and valued, not discounts

by | Feb 25, 2022 | Public Relations

While brand loyalty is historically thought to be based on money-saving opportunities like product discounts and loyalty program perks, new research from CX software firm Redpoint Global asserts that the concept of loyalty is shifting in the post-pandemic age.

The firm’s new report, with research partner Dynata, reveals trends in brand loyalty and implications around customer experience management. The survey research also finds that 65 percent of consumers profess they love fewer than three brands, and an additional 9 percent claim not to “love” even a single brand.

Respondents indicated that personalization was key to their brand connection. About three-quarters (74 percent) say that feeling valued and understood as the key component in a brand loyalty program.

Rewards for delivering personalization well and cultivating brand loyalty are also evident

The survey found 64 percent of consumers would rather purchase a product from a brand that knows them, and 34 percent would spend more money on the product to do so. Furthermore, 49 percent of consumers said they were more likely to consider a purchase from a brand that does personalization well, and nearly one in three (32 percent) are willing to overlook a single bad customer experience if they feel like a company is trying to understand them as a customer. Keeping loyal customers happy is key to customer retention, a process exponentially less costly than customer acquisition.

While many identify quality goods and services as essential to loving a brand (40 percent), 17 percent also highlight quality of experience across all channels as their chief requirement. The number one way brands make individual consumers feel understood is by offering relevant product and service recommendations (52 percent), followed closely by making it easier to navigate in-store and online (44 percent). Another 41 percent said they feel understood through the frequency of interactions—sharing relevant information in a timely manner, but not too often.

“Chasing discounts for goods and services is ultimately a race to the bottom in terms of costs,” said John Nash, chief marketing and strategy officer at Redpoint Global, in a news release. “The organizations that will thrive are finding ways to increase customer loyalty through delivery of timely, relevant and highly personalized information. Consumers strongly indicate that personalization and an overall frictionless customer experience are foundational to building relationships that are built to last.”

Generationally there is a bit of a divide in terms of what brand loyalty entails

Boomers tend to lean more towards discounts and loyalty points, whereas values alignment is the biggest driver of brand loyalty for Generation X, Millennials and Generation Z. Still, approximately 1 out of 4 consumers at every age prioritize value alignment. Data privacy matters too, with nearly half (47 percent) of consumers feeling disrespected when brands collect their personal data without asking or don’t clearly give them the opportunity to opt-in or opt-out of communications. Additionally, 42 percent feel disrespected when brands are not transparent about how they will use their personal data.

This survey was conducted via Dynata in January 2022 and targeted 1,000 U.S.-based consumers over 18 years of age.

Richard Carufel
Richard Carufel is editor of Bulldog Reporter and the Daily ’Dog, one of the web’s leading sources of PR and marketing communications news and opinions. He has been reporting on the PR and communications industry for over 17 years, and has interviewed hundreds of journalists and PR industry leaders. Reach him at richard.carufel@bulldogreporter.com; @BulldogReporter


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