Study: Personalization driving loyalty

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And, while most brands believe they are offering that one-to-one personalization (73%), the researchers with Formation say marketers continue to miss with their personalization targeting. This, according to the report, is because while more than half (58%) of shoppers say they are ‘more loyal’ to brands now than in the past most (63%) belong to between 1 and 3 loyalty programs, a sign that loyalty programs are not delivering what brands think they are. The researchers also found that more than three-quarters (77%) of shoppers say brands ‘could do more’ to earn their loyalty.

“Garnering loyalty is increasingly difficult, especially with the economic uncertainty brought on by COVID-19. The need for brands to deliver real value has become more dire as shoppers evaluate purchasing decisions against personal safety and tighter household budgets,” said Christian Seichau-Hansen, CEO & Co-Founder, Formation. “Consumer expectations for individualized experiences are rising, and the pandemic is accelerating that. If brands want to foster loyalty from today’s consumer, they must deliver experiences and communications so tailored they feel as if they’ve been crafted for just that one person.”

In fact, researchers found that 79% of shoppers say the more personalization options uses the more loyal they are. Other interesting findings include:

â–ª 73% of shoppers ‘are more likely’ to engage with brands offering loyalty programs
â–ª 81% of shoppers ‘will share basic data’ with brands for more relevant/personalized experiences
â–ª 75% of shoppers recognize macro and micro segmentation tactics used in email

More Formation data can be accessed here.

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ABOUT THE AUTHOR

Kristina Knight-1
Kristina Knight, Journalist , BA
Content Writer & Editor
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Kristina Knight is a freelance writer with more than 15 years of experience writing on varied topics. Kristina’s focus for the past 10 years has been the small business, online marketing, and banking sectors, however, she keeps things interesting by writing about her experiences as an adoptive mom, parenting, and education issues. Kristina’s work has appeared with BizReport.com, NBC News, Soaps.com, DisasterNewsNetwork, and many more publications.