Almost half (49%) of Australian consumers indicate that there some brands they will never switch from no matter what, according to findings from a new Emarsys Customer Loyalty Index.
The research found that there are customers whose unwavering lifetime loyalty can be built through making consumers fall in love with a brand, with seven in 10 (70%) of Australian consumers admitting they have a favourite brand they love and trust.
Even though more than half of shoppers are loyal to brands because of consistently low prices and discounts, 12% wouldn’t even consider switching products if a cheaper version was available.
Commenting on the findings, Emarsys managing director for Asia Pacific, Adam Ioakim said some retailers have customers who are simply die-hard fans and the reasons for their loyalty can be vastly different.
“One customer might be loyal due to product quality or customer service, and for another customer it could be as simple as having entertaining, heart-warming, or funny adverts. But creating this kind of unwavering loyalty isn’t going to happen overnight,” he said.
“Understanding why shoppers love your brand is essential. If you have enough insight into your customers, then you’ll understand why they like shopping with you. Every touchpoint you then have is an opportunity to build a better bond.”
Excellent customer service a key motivating factor for just under half (48%) of consumers, only falling behind low prices, wide products range, as well as discounts and incentives on the list of top motivating factors.
Yet a poor customer experience can also persuade a loyal customer to jump ship. Just over half (51%) of consumers claim to have switched from a brand due to a bad experience.
Interestingly, the older demographics are much more likely to be loyal to a brand based on customer service. Over two thirds (68%) of respondents aged 55 plus held this as their top reason versus just under two in five (39%) of respondents aged 25 to 34.
The research showed that Australian consumers are most loyal to retailers in clothing and fashion (56%), followed by food and drink (55%), beauty and skincare (35%), technology (32%), furniture and homeware (19%), automotive (11%) and airlines (10%).
The top types of retailers respondents are the most loyal to are department stores (36%), independent retailers (33%), single-brand stores (30%), pre-loved and charity shops (16%), followed by e-commerce/social media-based stores (12%) and direct subscription brands (9%).
For all retailers, Ioakim’s advice is to personalise communication touchpoints to reflect individual preferences. “It’s important to be aware of any dislikes or turnoffs. Instead of making suggestions based on assumptions, the key is to ascertain the specific triggers for each customer and then deliver content that’s contextually relevant.”