NEWS17 August 2016

Relevance trumps personalisation for brand loyalty

News Retail Trends UK

UK — New research from the DMA (Direct Marketing Association) reveals that 40% of consumers would like event reminders and purchase suggestions from brands.

Loyal crop

However, when asked what they liked receiving from their favourite brands, only 33% said they wanted tailored offers and deals. 

The study, produced by the Future Foundation in conjunction with Relay42, Organic and Acxiom on behalf of the DMA, explored the changing nature of consumer engagement with brands.

It found that there were four types of brand loyalty:

  • Active Loyals ( 40%), who stay loyal to brands for both routine and special purchases, and who tend to be both older and younger
  • Habitual Loyals ( 23%), who stay loyal for routine buys but shop around for special purchases. More men than women are in this category
  • Situational Loyals ( 9%), who are flexible for routine buys but loyal for special purchases. This percentage rises to 15% among 16-24 year olds
  • Active Disloyals ( 27%), who have no brand loyalty. More women than men are in this group, and more 45-64 year olds

Reasons that consumers gave for continuing to use a brand even if they could get a cheaper deal elsewhere included good service ( 52%), quality of products ( 48%) and convenience ( 46%). 

The study also revealed that disloyalty increases with the value of items consumers are looking to purchase, and that customers are willing to share data in exchange for benefits, such as lower prices, loyalty rewards and special deals. 

Findings were based on a survey with 1,000 consumers and qualitative research exploring the language consumers use when discussing their relationships with brands.