Emotional Loyalty Drives Consumers to Brands

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By Published On: May 21, 20240 Comments

New research has revealed that savvy consumers are getting behind loyalty rewards, and what you can do to instill more joy in your members.

The 12th edition of the annual Australian customer loyalty and loyalty program research study, For Love or Money 2024, reveals that in order to be successful, loyalty programs need to be more useful and importantly, more joyful.

The research, conducted by The Point of Loyalty and First Point Research and Consulting through an online panel of 1,010 Australian consumers, found that 50 percent of loyalty program members have become actively involved in ALL of the programs they are a member of.

This is the highest active rate as tracked by the research since 2021 where only 43 percent of members reported they were active in all of their programs.

The research defined an active member as having presented their card or membership number when making a purchase in the past 12 months, with ‘loyalty program’ defined as any type of loyalty or rewards program, VIP club, frequent buyer, member benefits or discount program.

Report author and CEO of The Point of Loyalty, Adam Posner said “With economic uncertainty and everyday living expenses increasing, it’s not surprising members are more actively engaged with programs they know and trust to earn more savings and rewards.”

“However, 50 percent activity means the other half of their programs are not being actively engaged in. This highlights the need for loyalty programs to be more financially relevant, useful and joyful”, he said.

For the first time in the ongoing research study, emotional loyalty to a brand was researched with consumers. Eighty-five percent of consumers identified with a feeling of emotional loyalty (in a positive way) to a brand at any one or many moments.

The top five one-off or ongoing moments identified by consumers in the research, were: 

  1. Being recognised and rewarded for being a valuable customer (49 percent)
  2. Thanking them for being a valuable customer (36 percent)
  3. Meeting expectations when purchasing product/service from the brand (33 percent)
  4. Make the purchase experience simple and seamless (28 percent)
  5. Being surprised and delighted with special moments and unexpected rewards and benefits (26 percent)

Posner commented “Emotional loyalty to a brand is a topic of wide and varied debate and the research adds some new insights to the discussions, giving brands a guide on how to foster a deeper emotional connection with their customers”.

“A well designed and managed loyalty program enhances the overall experience the member has with the brand. This means brands with programs need to nurture their programs to be profitable and sustainable for the brand and meaningful and desirable for their members,” Posner continued.

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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