New research from SAP Emarsys Customer Engagement has found that almost half (45%) of Australian customers remain ‘silently loyal’ to their favourite brands – regularly purchasing from them despite not recommending them publicly.
SAP Emarsy’s Customer Loyalty Index (CLI) surveyed more than 2,000 Australian consumers to help brands understand how to engage loyal shoppers. According to the research, 55% of customers will avoid a brand after a single bad experience.
Total Tools, Australia’s largest professional tool retailer, is one company focused on nurturing silently loyal consumers. By partnering with SAP Emarsys to employ AI, the company brought together all customer data into a single, actionable spread.
Total Tools Group head of loyalty, Elisse Jones, explains how implementing AI is helping the brand to grow.
“We’re using the customers’ interactions with our brand to drive a conversation with them. And with AI and machine learning doing the heavy lifting for us, driving personalisation at scale, we can focus on delivering a more rewarding customer experience.”
By employing generative AI technology, Total Tools saw a 200% increase in loyalty sign-ups online. Using SAP Emarsys’ automation and AI-driven personalisation capabilities allows the company to reach customers on the correct channel and deliver tailored offers straight to their inbox.
These ‘silently loyal’ customers are becoming increasingly important, with research showing that a new customer can cost up to five times more than retaining an existing one. Silent loyalists are key to creating long term business growth.
SAP Emarsys chief marketing officer, Sara Richter said, “Silent loyalists are the unsung heroes of customer loyalty. AI empowers brands to uncover these valuable customers, delivering tailored experiences that further strengthen the customer relationship. By focusing on convenience, availability, and personalised rewards, brands like Total Tools can build enduring relationships with these customers, ensuring they feel valued without disrupting their loyalty.”