Brand loyalty is the holy grail of marketing in today’s crowded marketplace. In an environment where consumers can find a multitude of willing providers for any product, getting people coming back to you regularly is the key to long-term success.
But what is the price of loyalty and should consumers who keep coming back be actively rewarded for doing so?
Young consumers in the UK certainly seem to think so.
A survey of 1,500 British consumers by Banking Refunds found that 35% appreciate brands that go the extra mile (even if the extras are included in the cost of purchase) and 23% claim this leads to long term loyalty.
29% expect brands to offer them perks for repeated custom.
36% said that receiving tailored perks, such as discounts on commonly purchased items or benefits on birthdays, made them feel ‘special’.
30% of consumers asked said they would most like exclusive discounts, while Amazon Prime (37%) and Netflix (31%) subscriptions were the most sought after.
“Everybody loves a perk, and there is no better feeling than getting a freebie. Our research suggests that they are a great way for brands to cultivate brand loyalty especially with young consumers, which in turn could drive more revenue,” Carl Millar, Managing Director at Banking Refunds, said.
Older consumers more cynical
It seems to be younger consumers that are the most swayed by perks.
35% of respondents aged over 65 claimed that freebies and perks were not an effective strategy for building brand loyalty.
In fact, only 12% of that age bracket thought it was an effective way of getting repeat custom. This compares to 37% of 18-30 year olds who thought that perks did inspire brand loyalty.
“Our findings highlight the importance of any benefits needing to be tailored to the wants and needs of consumers,” continued Millar.
“Millennials believe perks are effective in establishing a connection with a brand, and it can be strongly suggested that brands with a younger core demographic are likely to gain the most from investing in perks to drive revenue or acquisition.”