Survey: The key to brand loyalty is…

Dan Berthiaume
Senior Editor, Technology
AI concept
Brands need to personalize their consumer loyalty efforts.

Most consumers are only loyal to a limited number of brands, so understanding what drives brand loyalty is key.

According to a new survey of more than 1,000 U.S. consumers sponsored by customer experience software vendor Redpoint Global, about two-thirds (65%) of respondents say they love fewer than three brands, and an additional 9% claim not to “love” even a single brand. 

When asked what factor drives brand connections, a leading 74% of respondents indicated that personalization is key to their brand connection – citing feeling valued and understood as the top component in a brand loyalty program.

[Read more: Survey: Brand trust, online product info drive purchase decisions]

The Redpoint survey also found that 64% of respondents would rather purchase a product from a brand that knows them, and 34% would spend more money on the product to do so. Furthermore, 49% of respondents said they were more likely to consider a purchase from a brand that does personalization well, and nearly one in three (32%) are willing to overlook a single bad customer experience if they feel like a company is trying to understand them as a customer.

Examining responses by consumer generation, the study finds there is a bit of a divide in terms of what drives brand loyalty. Baby boomers tend to lean more toward discounts and loyalty points, while values alignment is the biggest driver of brand loyalty for Generation X, millennials, and Generation Z. Overall, approximately one out of four respondents at every age prioritize value alignment.

Other interesting findings include:

  • 40% of respondents identify quality goods and services as essential to loving a brand.
  • 17% of respondents say quality of experience across all channels is their chief requirement for loving a brand.
  • Nearly half (47%) of respondents feel disrespected when brands collect their personal data without asking, or don’t clearly give them the opportunity to opt-in or opt-out of communications. Additionally, 42% feel disrespected when brands are not transparent about how they will use their personal data.
  • The number one way brands make individual consumers feel understood is by offering relevant product and service recommendations (52%), followed closely by making it easier to navigate in-store and online (44%). Another 41% of respondents said they feel understood through the frequency of interactions – sharing relevant information in a timely manner, but not too often.

“As retailers think about where to prioritize their time and money, they’ll be wise to listen to the majority of customers who favor feeling valued and understood as the key component in a brand loyalty program, over discounts and loyalty perks,” John Nash, chief marketing officer, Redpoint Global, said in an exclusive commentary to Chain Store Age. “In a competitive retail market, brands who only recognize broad segments or loyalty tiers are limiting opportunities to acquire customers and to retain those who will be most loyal to the brand. Successful retailers will be those able to tailor every customer touchpoint while simultaneously respecting unique data privacy preferences.”

The survey was conducted via Dynata in January 2022 and targeted 1,000 U.S.-based consumers over 18 years of age.

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