60% of consumers cite social responsibility as a reason for their brand loyalty

Purposeful rewarding: consumers are shifting their loyalties to brands that care

Five in eight consumers who categorize their loyalty to their favorite brand as ‘genuine’, named brand social responsibility as a reason for their loyalty.

The Future Trends: Paid-for Loyalty report is part of a broader DMA series that delves into the future trends for 2020.

This report looks at loyalty, and how this term is being re-defined by consumers who are becoming more easily swayed. Brands are having to accept that people won’t necessarily be as sticky as they used to be.

Paid-for loyalty offerings

According to the DMA study, customers decide to commit to a specific brand and purchase a package of benefits (which allows them to access premium services) depending on several factors. Convenience is one of them. But other things like personalization and CSR have become increasingly important when people decide where to go shop. Ultimately, consumers are demanding that brands pay attention to their lifestyle, interests, and passions.

Loyalty shouldn’t just be determined by spend

The overall trend is that consumers are flakier. Plus, their loyalties can cross over several brands at the same time within the same industry. The bottom line is that people are becoming more disloyal, at a quicker rate, thanks to a constantly expanding range of offers and over-saturated market. Consumers need reassurance that engagement with a brand is worth it.

Therefore, brands need to rethink their reward strategies. Spend shouldn’t always be the metric that determines loyalty favors; consumers in 2020 are looking for more alternative, tailored benefits that make the customer journey even more convenient and worthwhile.

This blog is part of a three-part series. For part 1 click here and for part 2 click here.


Want to find out more? Get access to the full report here, and you can read all three reports in the DMA series here.

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