Go Back The State of Brand Loyalty 2022

Loyal Shoppers Go the Extra Mile

Consumers are willing to do the most for the brands they love and support.

Loyalty program modules

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In our State of Brand Loyalty 2021, customers made it clear that they were willing to go the distance for brands they love — especially in times of crisis. In addition, nearly 30% of overall respondents said they became more loyal to brands to help support them through COVID-19.

Consumers do the most for brands they love

Even as we approach a new normal, shoppers are still willing to go the extra mile for brands they love. When asked what customers would do for brands to which they are loyal, 65% of global respondents said they would sign up for a brand’s loyalty program. When customers feel emotionally connected to a brand, they want to act on their loyalty, and a loyalty program is their preferred way to express it.

 

Another 59% of shoppers said they would wait to purchase until their favorite brand’s products were back in stock, and 58.5% said they would sign up for a brand’s emails. These numbers highlight the dedication and connection shoppers feel for brands they love.

Globally, the majority of respondents (67.4%) want to shop directly from brands to which they are loyal. Loyal customers don’t want the generalized experience of Amazon. Instead, they want to feel connected to the brands they shop from and be a part of the brand itself. A D2C presence allows brands to establish a rapport with their customers, to build a community shoppers are excited to join.

Take it from HomeWorx, a “masstige” home fragrance company. Before 2020, the brand primarily sold through brick-and-mortar stores and QVC. But, they saw the opportunity to grow their D2C platform, as in-store retail grew increasingly unpredictable during the pandemic. As a result, their tiered program, Club HomeWorx, drives more new shoppers to their site than ever before — and they’ve increased shopper retention rates by 25%.

But what about the behavioral piece of the puzzle? Over 83% of global respondents said belonging to a loyalty program influences their decision to buy again from a brand. As businesses value customer retention over acquisition, the importance of a strategic loyalty program skyrockets. Why? Because they offer clear value to shoppers and keep them coming back.

Nuun, a lifestyle brand dedicated to providing high-quality nutrition drinks, increased customer lifetime value by 3x after launching their loyalty program. Additionally, Gen Z fashion favorite Princess Polly drives 15.4x ROI with their loyalty program alone.

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