Key Overview:
- Approximately two-thirds of consumers believe that brands prioritize new customers over their existing clientele, as revealed by a survey published on Friday by email marketing platform GetResponse. This sentiment escalates to about 70% among those who make monthly purchases.
- Interestingly, nearly 70% of brands maintain an equitable distribution of their budgets between customer acquisition and retention, according to the findings. The survey polled 2,400 consumers and 600 direct-to-consumer and e-commerce brands across the United States, the United Kingdom, Germany, Spain, Italy, and Romania.
- Larger enterprises tend to allocate more resources toward customer retention, with 40% of brands boasting revenues exceeding $50 million ranking this as their primary growth focus, while only 29% of brands with revenues below $5 million share this priority.
Analytical Insights:
Consumers aspire for brands to acknowledge their loyalty, seeking recognition that transcends mere discounts or promotional incentives.
“Many of us have encountered that disheartening moment: a fantastic introductory offer, but exclusively for new customers,” remarked Patricia Camden, managing director and customer experience and loyalty authority at EY, in an email.
“Simultaneously, we have remained loyal for years, yet our history goes unnoticed. This quickly engenders a perception issue.”
Research by EY has consistently indicated that customers desire acknowledgment in substantial ways, according to Camden. A meticulously designed loyalty program can bridge the gap, attracting new clientele while also valuing the loyalty and preferences of longstanding customers.
“Brands excelling in this domain weave loyalty into daily experiences, rather than restricting it to promotional events,” Camden noted.
“When loyalty programs are crafted based on consumer insights and tailored recognition triggers, perceptions shift from ‘brands are solely interested in new customers’ to ‘this brand appreciates my enduring relationship.’”
Consumers exhibit a willingness to engage in the brand-consumer nexus, as GetResponse’s survey underscores. An impressive 91% of respondents express readiness to share personal preferences with brands in exchange for enhanced rewards or offers.
Recognition extends far beyond mere loyalty points, as Camden highlights. Furthermore, the benefits cannot adhere to a one-size-fits-all model.
Recent EY research disclosed that many women appreciate recognition on their birthdays, while such milestone acknowledgments tend to bear less significance for men, as per Camden’s observations.
The frequency of rewards significantly influences consumer preferences. EY found that some customers yearn for frequent bonuses, whereas others gravitate towards rewards perceived as more infrequent but personalized.
Above all, a quest for value resonates among consumers, Camden asserts.
“A recurring theme in our research highlights the importance of value that transcends discounts,” Camden elaborated.
“Exclusive services, member-only events, unique experiences, and benefits with partner brands often resonate more compellingly than a mere coupon or discount.”
These revelations align closely with GetResponse’s research findings. A significant majority of consumers express a desire for VIP treatment, with 93% indicating they would be inclined to participate in exclusive experiences or recognitions designed for loyal customers if offered by their favored brands.
Source link: Marketingdive.com.
