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BizReport : Loyalty Marketing : September 22, 2014

Consumers more likely to be loyal to brands with a physical presence

Consumers are loyal to just three brands, according to Emarsys, whose recent study shows that online-only brands find it harder to attract loyal consumers than those with a physical store.

by Helen Leggatt

Retaining customers and maintaining their loyalty is a key concern of brand marketers but, according to new research from Emarsys, this is easier said than done for those businesses that are online-only.

According the Emarsys' research, consumers have just three brands to which they are loyal at any one time. Furthermore, over three-quarters (79%) said they were more likely to be loyal to brands that have a physical presence.

The key to keeping online-only brands' customers loyal is, says Emarsys, personalization and special treatment. More than 4 in 10 consumers (42%) say this type of treatment builds trust and loyalty with online-only brands.

According to Steven Ledgerwood, brands "need to make better use of the data customers share with them to target offers and ideas that are truly relevant. As well as offering the usual loyalty points and discounts, our survey found customers want preferential services for their loyalty (29%) and offers tailored around birthdays and anniversaries (33%)".

However, Ledgerwood observes that many brands are not taking this advice onboard, despite the fact that consumers will share more personal information with a brand they trust which, in turn, enables greater personalization.

Fashion was the sector that inspires the greatest online brand loyalty (51% - 64% among women), found Emarsys, followed by entertainment (27%), lifestyle (20%), music (19%), travel (18%), sports brands (15%), personal IT (14%) and sport activity (13%).

Image via Shutterstock

Tags: brand marketing, brick and mortar, ecommerce, loyalty marketing, personalization, retail

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