STUDY: Brand Loyalty Isn’t Dead, it’s Just Complicated

• Annual InMoment report highlights significant consumer retail trends
• Findings include how brands can earn the loyalty of their consumers
  during the holiday shopping season

SALT LAKE CITY–(BUSINESS WIRE)–#CEM–A recent study from customer experience (CX) intelligence leader
InMoment
reveals how today’s retail customers define brand loyalty in the face of
endless options as we approach the holiday season.

The 2018
Retail Trends Report surveyed 1,300 U.S. consumers and highlights
the different ways today’s shoppers define brand trust and loyalty.
Contrary to the perception of many retailers, 83 percent of consumers
consider themselves about the same or more loyal to brands than their
parents, with nearly 30 percent of Millennials reported being more brand
loyal than their parents — the highest percentage among all demographics.

Consumers who considered themselves less loyal than their parents cite
more choices (54 percent), with 37 percent saying it was because they
have more information. But choice and education cut both ways: for
consumers who felt they were more loyal than mom and dad, 42 percent
said it’s due to doing more research and having first-hand experience,
with 35 percent saying its because they have a larger variety of
choices. The message to retailers: be transparent with information, and
ensure what you have to offer has unique and compelling value for your
customers.

When asked to describe their style of loyalty, consumers reported the
following:

• 60 percent: Share the love. The majority of consumers say that
  while they aren’t singularly committed, they are faithful to a
  “select” number of brands or products. For example, while they may not
  purchase all of their fitness clothing from a single brand, they do
  buy their running shoes from the same brand faithfully. Loyalty is
  connected to specific value offered by a product or service.
• 23 percent: Play the field. The study found 23 percent of
  consumers say they aren’t loyal to specific retailers or products.
  Instead, these consumers tend to make purchasing decisions in the
  moment depending on new products/services, price, offers/sales,
  recommendations, etc.
• 17 percent: Monogamist. The mythological (and perhaps,
  nonexistent) loyal consumer is a rare find, but they do exist.
  However, only 17 percent of consumers classified themselves as
  “fiercely loyal” to a handful of brands — typically one per category.

According to Andrew Park, senior director of customer experience
strategy at InMoment, these findings reveal a complex and varied
definition of loyalty that brands must understand and respect if they
hope to build high-value relationships.

“The holiday shopping season provides a great opportunity for retailers
to begin building genuine relationships with their new and existing
customers that last far beyond December,” said Park. “The brands that
stand out during the holiday shopping frenzy are the ones that have been
listening to and collecting authentic and direct feedback from customers
all year and use this feedback to inform experiences their customers
desire most. Whether it’s as complex as a popular e-retailer opening a
holiday pop-up store or as simple as offering layaway options, when
customers recognize they’re a priority and co-creators of a brand’s
reputation and value, they’re much more likely to be and stay loyal for
the long haul.”

To download the full report with all of the findings, click here.

About InMoment

InMoment™
is a cloud-based customer experience (CX) intelligence leader,
arming brands with compelling customer insights to drive high-value
business decisions and relationships with both customers and employees.
InMoment’s industry-leading analytics
power a full suite of Voice of Customer (VoC), Voice of Employee (VoE),
and Employee Engagement solutions. InMoment also provides strategic
guidance, support, and related services to more than 425 brands across
95 countries. For more information, visit http://www.inmoment.com/.

Contacts

InMoment
Lisa Davis
VP Communications
ldavis@inmoment.com
+1
801.230.9399 m