Customer loyalty can be viewed over time through a series of different consumer behaviors.
But what factors are really driving consumers to be loyal to certain brands.
We asked 2,500 consumers to explain why they’re loyal to their favorite brands to better understand the psychology behind what keeps them regularly buying and engaging.
Those responses were captured in our 2022 Customer Loyalty Data Study, which, among other findings, answers the following questions:
- What’s driving demand from loyal shoppers?
- What really influences their opinions and what’s simply hype?
- How much do brand values influence consumer decision-making?
- How do loyal customers engage?
- How much control do you have over customer loyalty?
These topics were discussed during an ebbo™ webinar, titled, “What Are the True Drivers of Loyalty in the Minds of Consumers?”.
Paul Wolfer, B2B Marketing Manager, ebbo; and Tom Baker, VP, Strategic Partnerships at ebbo, co-hosted of the webinar.
Here are the most important takeaways from the webinar.
The Drivers and Disruptors of Loyalty
At the end of the day, for many consumers customer loyalty boils down to price and quality. In fact, 65% of consumers say a decline in a brand’s product quality would cause them to lose their loyalty and try a different brand.
Nearly one in four consumers says higher quality products best describes why they’re loyal to their favorite brands. And 47% say a price increase would cause them to lose their loyalty and try a different brand.
But there are other factors that have a huge impact.
Our study revealed the following stats:
Seventy-six percent of consumers say it’s opinions of friends and family.
Fifty-seven percent say it’s media coverage.
A sense of community triggers customer loyalty, the study finds.
- Thirty-four percent join online groups.
- Thirty-two percent attend in-person events.
- Eighteen percent consume brand-related content.
Also, one in four consumers says a strong sense of community describes why they’re loyal to their favorite brands. Whatever your brand can do to create a sense of community for your customers will go a long way toward creating brand advocates.
Loyal customers want to be immersed in these communities and connected to your brand.
The study breaks down the top reason various age groups are loyal to their favorite brands.
- Gen Z: This brand does good in the world or has a positive social impact.
- Millennials: I feel a strong sense of community with others loyal to this brand.
- Gen X, Baby Boomers, Over 74: This brand offers a higher quality product than similar brands.
The Habits and Attitudes of Loyal Customers
So, now that we know the drivers and disruptors of loyalty, what about consumers’ habits and attitudes?
According to our study, the following are actions loyal consumers have taken in the past 12 months.
- Sixty-seven percent of consumers bought their favorite brands’ products regularly.
- Forty-eight percent of consumers told their friends about their favorite brands.
- Twenty-four percent of consumers provided feedback/filled out surveys from their favorite brands.
When consumers are loyal, they are engaged. Consider 64% of consumers check their loyalty status or points at least once a month, and 36% check weekly.
What your loyal customers aren’t doing:
- Twenty-four percent aren’t providing feedback/filling out surveys from their favorite brands.
- Nineteen percent aren’t sharing personal data with their favorite brands.
- Seventeen percent aren’t posting about their favorite brands using hashtags/handles.
These numbers tell brand officials there are opportunities to engage more consumers. In fact, 58% of consumers have rarely or never shared a post about their favorite brands on social media.
For brands seeking to collect deeper customer data, here are some thought-provoking stats from the study:
- Seventy-three percent of consumers will share their email addresses with their favorite brands.
- Sixty-five percent of consumers will share their names.
- Fifty-six of consumers will share their birth dates.
- Thirty-four percent of consumers will share their demographic data.
- Thirty-one percent will share their home addresses.
There are many ways that brands can collect deeper and more accurate consumer data through incentivized engagement.
By offering a value exchange through sweepstakes, promotions, and rebates, brands can give their customers reasons to provide data which can lead to a better customer experience.
Balancing Brand Values and Loyalty
In the customer loyalty world there is a large discussion around brand values. And how these values impact customer loyalty.
Do brand values matter?
Well, 44% of consumers say they continue to shop at brands that don’t share their values. And almost three out of four consumers willingly or unwillingly purchases from brands that have contrary stances or beliefs to their own.
Why?
Fifty-six percent of consumers do it to get better deals.
To illustrate the potential impact brands have on consumers, 69% say their favorite brands are part of who they are. This is the kind of stat every brand wants to see and trust because when consumers reach this level of loyalty, they are your best advocates and become invaluable.
So, who is unsure of their favorite brands values?
- Gen Z (38%)
- Millennials (42%)
- Gen X (51%)
- Baby Boomers (68%)
- Over the age of 74 (72%)
Think Holistically About Your Different Customer Segments
It’s important for brands to think holistically about their customer loyalty and engagement strategies and try to offer something for their different customer groups.
Price and quality still matter quite a bit, but your customers value community and the opinions of friends and family.
Your loyal customers are checking in often, but you need to act on those opportunities by incentivizing them to engage more between purchases and collecting deeper data from a large percentage of consumers.
While purchasing comes down to price for many consumers, brand values matter to many, especially younger generations.
Keep these thoughts in mind when you think about your own loyalty and engagement strategy.
For more customer loyalty data and insights, watch the full webinar recording here.
If your brand needs help in any of these areas, feel free to contact us here.