Tuesday, April 16, 2024

Price point still leading factor for customer loyalty

Cost continues to greatly influence customers, with 65% of Aussie consumers stating they will switch products if a cheaper option is available.

This comes from Emarsys research which surveyed consumers on what influences their purchases.

Additionally, more than half of consumers (51%) highlighted consistently low prices as a top reason for staying loyal to a particular retailer.

However, the most popular reason for being loyal to a brand was having a wide range of products (60%), followed by regular discounts, loyalty points and incentives.

“Incentivised Loyalty exists and can lead customers to shop regularly whilst also considering themselves brand advocates,” Managing Director, APAC at Emarsys, Adam Ioakim says.

“Having a quality product or experience is no longer enough. Brands must also work hard to provide attractive prices and valuable offers.”

Emotional customer connections

Emotional connections with a brand that has strong social and ethical values are shown to be important as well.

The research shows that 23% and 21% of consumers respectively listed these as top reasons for remaining loyal to a brand.

“Compared to other generations, millennials and Generation Z as a cohort tend to be much more influenced by emotional drivers when it comes to loyalty,” Mr Ioakim says.

“They favour a personalised, human connection and shared social values and hold these almost equal to experience when it comes to building loyalty.”

More than a quarter of consumers revealed that there are some brands they regularly buy from despite disagreeing with their ethics. The team at Emarsys says, this begs the question; is convenience and price more important than brand values?

“Consumers may be silently loyal due to competitive prices, next day-delivery or a wide range of products, without actually considering themselves to be a brand ambassador.”

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