Shopper’s loyalty to brands IS higher than assumed
Most of the marketers in the eCommerce business were thinking along the lines that Generation Z shoppers are not loyal towards the brands at all. In fact, only 11% of them had any notion of brand loyalty being a key factor in the business. The latest research has proven them wrong!
The recent study by a certain eCommerce agency has shown that only 22% of the marketers thought that the shoppers participated in loyalty programs launched by brands in the past two years. The research involved around 2000 shoppers and some 400 marketers.
The actual findings have shown that the professionals were way off in their estimates, as the real percentage of the shoppers increasing brand loyalty stood at almost a double figure – 38%.
On top of that, no less than 54% of the interviewed shoppers said that they are involved in loyalty programs via loyalty cards or mobile apps and that the average number of brands involved per shopper stands between 4 and 10.
Finally, no less than 86% of the shoppers openly expressed their opinion that they consider themselves actually loyal to the brands they are involved with!
The implications of such findings are more than serious. Given the fact that only a small percentage of marketers have considered brand loyalty as the key factor, it implies that there is a huge space left unattended for that could create quite a significant turnover for brands.
This is something that could affect every brand out there, regardless of the channel they favour for generating sales and hints that the well-executed loyalty programs across the omnichannel structure could actually yield quite significant ROI and could cause even major shifts in the eCommerce landscape.
Since both online and physical stores are considered as potential foundations for such an approach, there is a huge pool of options that marketers could use in order to retain shoppers and turn them into the regular customers.
It is to be expected that in the future this will provide a significant growth spurt to all those brands that manage to identify the right approach and invest in brand loyalty campaigns in the right way.