How to win trust and loyalty

How is loyalty changing? What do customers really want? Are consumers genuinely loyal to brands or is it purely habit? How can brands reward their customers to keep them loyal?

Loyalty card

Consumers say they feel less loyal, while their behaviour remains as loyal as ever – according to the third edition of this research that has tracker customer loyalty since 2016.

Nearly two-fifths of people (39%) say they feel less loyal to brands and companies than they did a year ago, but this may not translate into a change in their behaviour and needs.

Year-on-year the figures have remained steady with half of consumers (49%) still falling into the ‘Active Loyal’ group and around one in five (22%) as ‘Active Disloyal’ – with the remainder either loyal through habit or in certain situations.

Discussing what businesses can do to increase loyalty, Rachel Aldighieri, MD at the DMA, said: “Brands must renew their focus on the most important part of their long-term success, their customers.

Whether marketers decide to offer more personalised experiences, new loyalty schemes or flexible subscription models, successful brands will be those that can put the customer at the heart of everything they do.”

When asked to name their favourite brand or one they were loyal to, consumers were clear that one stood out above the rest: Amazon. Retail stalwarts Marks & Spencer, John Lewis, Sainsbury’s and Tesco complete the top five.

Consumers also report feeling genuine loyalty to these top brands, rather than this simply being based on convenience or habit.

Read the full report to find out more, including how:

  • Consumers are still prone to comparing offers and are deal sensitive
  • Different brands and sectors attract different kinds of consumer loyalty
  • Brand social responsibility and good customer service are strong drivers of genuine loyalty
  • Rewards and loyalty schemes in less established sectors are engaging younger consumers
  • The appetite for loyalty and reward points is somewhat saturated, needing to adapt to match consumer needs

Komal Helyer, Marketing Director at Pure360, explains: “Consumer trust in ‘faceless corporations’ is waning, and in its place is a growing preference for meaningful interactions with brands who are perceived as genuine, transparent and relevant. For marketers, the message remains the same: add value to your customer’s lives and stay relevant to their interests or risk losing their business altogether.”

Source: Above reproduced with the kind permission of the DMA – https://dma.org.uk/research/customer-engagement-2018-how-to-win-trust-and-loyalty 

Our view

Paul Meersman, Head of Marketing at CDS commented: "Brands need to get every touch point with their customers to deliver a rewarding experience that moves the customer smoothly and quickly through the buying process. To do this they need to get the basics right. Flaky systems and poor communications cause frustration and lose trust. Getting it right requires robust, secure digital and print systems that are intelligently integrated, data driven and provide a seamless multi-channel experience. It's as important for B2B companies to understand this as it is for household brands." 

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