Shoppers who switch, shoppers who don't
Part three of our whitepaper entitled 'Winning retail strategies for the digital age'
If brands get promotions right, the positive impact on loyalty can be significant. Overall, rewards have a big impact on customer devotion, with 68% saying that receiving a reward would increase their loyalty towards a brand. Our research reveals some interesting considerations, particularly for brands targeting Millennials.
It costs five times as much budget to win a new customer than to retain an existing one
Younger generations are more easily influenced by rewards when it comes to loyalty, with consumers aged 16 to 24 admitting to being the most influenced. In that age bracket, 79% say that receiving a reward would increase their loyalty to a brand.
Those aged 55 and over, however, are least swayed by rewards, with under half of these consumers (48%) echoing their younger counterparts.
Younger generations are more easily influenced by rewards when it comes to loyalty
But our research shows that offers are a good way to help win new shoppers. More than half of the respondents (56%) would switch products because of a promotional offer. This rises to 61% for those aged 16 to 34, a statistic any brand targeting Millennials should heed when developing their shopper marketing strategy.
Drilling deeper into the demographic findings, earnings don’t correlate with switching products because of an offer. Those who earn £45,000 to £55,000 are the most likely to switch, with 66% in agreement with the statement.
Higher earners are more likely to switch brands
Consumers who don’t work are least likely to switch.
The gender split
It’s when we explore the gender spilt that new opportunities appear.
Almost three quarters of women say receiving a reward from a brand change your opinion and increase your loyalty to the brand (73%), in contrast to 61% of men.
Furthermore, some 61% of women state they are likely to switch brands because of a promotion, compared to 50% of men.
What this means for brands
The marketing holy grail of knowing your consumer is still absolutely vital. All marketers strive to meet this goal, and it has never been more relevant. Promotions activated via smart technology are nothing without audience insight.
Brands must ensure that they are aware of the potential for loyalty in their target demographics, tailoring and prioritising activity accordingly.
Next page: Jumping into the convenience trolley