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Cristina Dinozo
Senior Director of Marketing Communication @ Yotpo
November 13th, 2019

New Data Reveals That Brand Loyalty Is on the Rise Among Consumers

The Growing Focus on Direct-to-Consumer (D2C) Experiences Are Potentially Driving a Renewed Affinity for Brands

NEW YORK, Nov. 13, 2019 /PRNewswire/ — Yotpo, the leading eCommerce marketing platform, released its annual brand loyalty survey examining American consumers’ sentiment towards brands, and the role of rewards programs in harnessing and cultivating that loyalty.

“This year’s data showing continued strong brand loyalty among consumers supports the idea of a brand renaissance, the same phenomenon fueling the rise of direct-to-consumer and growth of the modern eCommerce industry,” said Tomer Tagrin, CEO & Co-Founder, Yotpo. “But the study also reveals that loyalty is hard won. Most consumers consider themselves loyal to only a handful of brands. To win, brands need to stay at the top of their game by offering amazing products at a fair price and creating valuable experiences worth coming back to. The survey shows that even loyalty programs need to excite to drive engagement.”

In our survey of over 2000 consumers in the United States, nearly 9 of 10 professed loyalty to brands, with nearly a quarter (24.82%) saying they’re in fact more brand loyal this year versus last.

Our previous survey (2018) found a fifth of consumers saying they’re more loyal, marking a 27.9% uptick in this segment. This support Tomer’s thesis that the shift to direct-to-consumer (D2C) efforts are powering a brand renaissance.

The D2C approach isn’t just for digital natives; it also increasingly adopted by established brands who figured out that every channel–from their eCommerce sites to their stores to everything in between–is a critical opportunity to impress consumers so that they’ll keep coming back.

Takeaways from Yotpo’s 2019 State of Brand Loyalty study include state of brand loyalty today and how can brands and merchants capture and keep their customers’ interest in the long run.

Consumers care about brands

Nine out of 10 (90.2 percent) consumers consider themselves equally or more brand loyal compared to a year ago.

20192018
More loyal to brands this year24.82%19.4%
As loyal to brands this year64.33%70.8%
Less loyal to brands this year10.85%9.8%

How many brands are you loyal to?

1-561.08%
6-1026.19%
11-205.68%

Asked to define their brand loyalty, consumers polled overwhelmingly characterized it as repeat purchasing (67.8%), followed by “love” for the brand (39.5%), and finally, preference despite price (37.7%).

What does being ‘brand loyal’ mean to you?

I tend to buy from the same brand67.77%
I love the brand39.51%
I buy from the brand despite cheaper competitors37.68%

For consumers, product is still the point of entry and departure for brand loyalty, a validation of the “hero product” concept that are the specialty of modern D2C brands.

Which of these inspire your loyalty to a brand?
Product77.84%
Price62.96%
Customer service26.14%
Loyalty program22.34%

Consumers that are loyal to a brand are more than willing to refer that brand (59 percent) to their friends and family. They are also willing to spend more with that brand (36 percent) eschewing Amazon or cheaper options.

For brands they are loyal to, consumers are willing to?

Join their loyalty program59.48%
Refer the brand to others59.29%
Spend more on product even w/ cheaper options elsewhere36.49%

Brand loyalty needs to be earned and re-earned

What hasn’t changed in 2019? It still takes a lot of purchases to cultivate loyalty. Before considering themselves loyal, shoppers need to buy from the same company:

  • Five or more times (36 percent v. 37 percent)
  • Three times (33 percent, no change)
  • Four times (17 percent, no change)
  • Two times (13.2 percent v. 12.4 percent)

Impact of brand loyalty to holiday shopping

New for 2019! Consumers are more likely to do their holiday shopping with brands they love (41 percent) and a majority find customer reviews helpful (80 percent) when researching or shopping for gifts online.

When shopping for gifts, which of these are true?

I am more likely to buy something from a brand I love40.98%
I don’t typically consider brand name in my buying decision23.90%
Price is important but the brand matters more16.59%
I am more likely to buy from a brand if I am part of their loyalty program15.12%

When researching or shopping for gifts online, which of these are the most helpful?

Customer reviews80.49%
Photos from customers55.61%
Videos from customers29.76%

Read more about Yotpo 2019 Yotpo Brand Loyalty study here.

Yotpo’s 2019 State of Consumer Loyalty presents findings from a survey of 4,200 U.S. adult (18+) consumers, conducted by Pollfish for Yotpo in October 2019.

About Yotpo
Yotpo is an eCommerce marketing platform that provides advanced solutions for customer reviews, visual marketing, loyalty, and referrals. Yotpo proudly serves thousands of brands, including MVMT, THINX, Steve Madden, and Rebecca Minkoff. A Forbes Cloud 100 company, Yotpo is an official partner to Google and Facebook, has raised $101 million in funding and employs more than 375 people globally. Visit https://yotpo.com for more information.

Contact: Cristina Dinozo, 646-647-1776, press@yotpo.com

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