Given all the politics and polarization on the market in recent times, it’s a bit of a minefield for brands. Loyalty is down, according to many studies, and consumers generally seem less tolerant of brands that make mistakes or behave badly differently.
However, in a new survey of the mobile data company, Blis, 52% of respondents say they are more loyal to brands today than they were there were five years. Another counter-intuitive data point is that women seem significantly less loyal to the brand than men. But the study also has a range of interesting and more nuanced results that “brand loyalty is up or down.”
The survey of 2,000 US consumers provides a “hierarchy of needs” and values that consumers use to evaluate and make buying decisions from retailers and brands. Bottom – the most important or common considerations – are the quality and price of the product. The values or “morality” of the sellers are less influential as a counterparty to the purchase.
Hierarchy of Consumers of the Needs of the Brand
As noted above, a large majority (71%) of respondents stated that their main criteria in dealing with brands were the price and quality of products. Interestingly, consumers were more tolerant of errors or mistakes they “liked the mark”. (It is unclear what this means.) But there were differences and differences depending on the age cohort and the level of income.
The largest group has given brands that one chance to fail before changing loyalty. Among the different age categories, millennials were the least tolerant, unless they “liked the mark”. However, it is important to remember that the feelings expressed in a survey and the actual behavior are not always the same.
The survey also found that the higher the level of income, the less indulgent or patient consumers were:
[T] The higher the household income, the more likely it is to abandon a mark. 36% of surveyed consumers with household incomes below $ 25,000 are willing to give brands a number of opportunities, while 54% of consumers earning between $ 75,000 and $ 200,000 are less willing to forgive.
Asked about behaviors that annoy or alienate them, consumers surveyed cited poor quality, “shady business practices” and poor customer service as the most important. After these were too personalized content that involved surveillance, unrecognized loyalty and too many emails (over-communication). The most popular content in a different set of results was “promotional” (involving discounts or rewards).
From the brand’s point of view, the above chart may be the most valuable content of the report. Although customers said they were upset or alienated by “content or ads that were too intrusive or that they monitored my online behavior,” they were always willing to share personal information if it resulted in promotional offers and new products or privileged information.
These two series of results perfectly illustrate the challenge brands face: creating “personalized” content, advertisements and promotions that do not feel “too intrusive”. Damned if you do, damned if you do not do it.
The full study is available here (registration required).