2. What is driving customer loyalty?
How is customer loyalty changing in
2021 and beyond?
Is sustainability and charitable giving
important for loyalty?
INTRODUCTION TO LOYALTY
REIMAGINING LOYALTY
3. What does Customer Loyalty mean?
REIMAGINING LOYALTY
In the mind of a consumer in 2021 - loyalty works both ways. Real, tangible
benefits and reward for being loyal to a business should be reciprocated and
valued above all else in the corporate world.
Despite greater access to various retailers, increasingly more creative
recruitment strategies for competing brands and more personalised marketing
communications, brand loyalty is hugely important for brands and customers.
4. Do people still believe in Brand Loyalty?
REIMAGINING LOYALTY
Of people believe that brand loyalty exists, therefore it’s a very
real experience for almost everyone.
99%
True brand loyalty does not need a mechanism or program
to work, it is deeply rooted in the psyche of the consumer.
Source: Rare Consulting. UK adults 18+ years old. Data collected 7th - 24th May 2021 (N=854).
Q9 - When thinking about loyalty which of the following are the most important aspects for staying loyal to a brand? (N=854).
6. Key drivers of Brand Loyalty
REIMAGINING LOYALTY
QUALITY TRUST RELIABILITY
Consistent with our previous research into loyalty (Demystifying Customer Loyalty, 2016), Quality,
Trust and Reliability are more important than discounts, price and benefits in loyalty programs.
“A consistent experience with the quality of a brand and the
service accompanying it.”
Male, 48-54 years old, East Midlands.
“When quality and value of a product or service have been
very good over a sustained period of time.”
Male, 55+, East Midlands.
7. Breakdown of Brand Loyalty key drivers
REIMAGINING LOYALTY
Source: Rare Consulting. UK adults 18+ years old. Data collected 7th - 24th May 2021 (N=854).
Q9 - When thinking about loyalty which of the following are the most important aspects for staying loyal to a brand? (N=854).
8. Key drivers of brand loyalty -
demographic breakdown
REIMAGINING LOYALTY
Source: Rare Consulting. UK adults 18+ years old. Data collected 7th - 24th May 2021 (N=854).
Q8 - When thinking about loyalty incentives, which of the following categories do you have?
Females (N=438), Males (N=416).
There are slight differences between males and females
in key drivers of brand loyalty.
9. Key drivers of brand loyalty -
generational breakdown
REIMAGINING LOYALTY
Source: Rare Consulting. UK adults 18+ years old. Data collected 7th - 24th May 2021 (N=854).
Q8 - When thinking about loyalty incentives, which of the following categories do you have?
Baby Boomers and older (N=317) Gen X (N=211) Millennials (N=228) Gen Z (N=98).
There are also differences between the generations in
key drivers of brand loyalty.
10. Brand Mechanics
REIMAGINING LOYALTY
Customer loyalty is mostly driven by value for money. However,
offering all of the below metrics is the key to success.
Source: Rare Consulting. UK adults 18+ years old. Data collected 7th - 24th May 2021 (N=854).
Q27 - When thinking about the brands you are most loyal to, to what extent do you agree with each of the following? ‘Strongly/Somewhat agree’ (N=854).
12. 1. It’s a changing world
2. Robbing Peter to pay Paul?
3. Organic loyalty
4. Exceptions to the rule
13. Top Loyalty Mechanisms
REIMAGINING LOYALTY
Point based
rewards account
Subscription
based account
Discount
rewards
card/account
A fast track or
priority access
rewards card /
account
A friends and
family rewards
card / account
An exclusive
membership
rewards /
account
None of the
above
Other
Source: Rare Consulting. UK adults 18+ years old. Data collected 7th - 24th May 2021 (N=854).
Q8 - When thinking about loyalty incentives, which of the following categories do you have? (N=854).
14. Apps and Email Communications
REIMAGINING LOYALTY
In comparison to just 29% of consumers who would prefer to be notified via App. As
opposed to being informed frequently through push notifications, Emails allow consumers to
make decisions when they are ready and on their terms.
Everyone wants an app, right? However, 71% of customers stated that Email is
the most preferred method of communication for loyalty reward schemes.
Source: Rare Consulting. UK adults 18+ years old. Data collected 7th - 24th May 2021 (N=854).
Q25 - How would you like to be notified of your loyalty rewards? (N=854).
15. REIMAGINING LOYALTY
Case Study - Bloom & Wild
Bloom & Wild are a popular letterbox flower delivery
service. Some of their offerings include:
● 10% off your next order.
● NHS staff discount.
● Opt-out emails for Father’s Day and Mother’s Day.
● 10% once signed up to the Bloom & Wild
newsletter.
Bloom and Wild offer price discounts as well as not only
a tailored service through their subscription and
product offerings (one off purchases, monthly flowers
sent to a person of your choice etc), but their email
communications are also personalised and tailored to
their customers needs allowing them to opt-out of
certain communications.
17. How are attitudes changing to sustainability?
REIMAGINING LOYALTY
of the population agree that,
sustainability is an important
aspect in staying loyal to a
brand.
This is of more importance
to women (70%) than it is to
men (56%).
It is still a majority for both
groups and should be a
focus for brands.
of the population agree
that, charitable giving is
also an important aspect
in staying loyal to a brand.
Similarly, this is of more
importance to women
(60%) than men (51%).
Source: Rare Consulting. UK adults 18+ years old. Data collected 7th - 24th May 2021 (N=854).
Q9 - When thinking about loyalty which of the following are the most important aspects for staying loyal to a brand? (N=854).
18. How are brands embracing sustainability?
REIMAGINING LOYALTY
It’s more important than ever that brands embrace sustainability and charitable giving as part of their
loyalty schemes:
According to WARC, reducing CO2
emissions is now the primary
association, having grown to 19% -
pushing ahead of recycling programs
and single-use plastics.
Consumers regard retailers as being in
the lead when it comes to
communicating around sustainability,
especially supermarkets.
A majority of people say they are
willing to pay more for sustainable
brands, but many wonder why they
should have to.
19. Final Thoughts
REIMAGINING LOYALTY
Everyone believes
in brand loyalty
Quality, trust
and reliability
Subscription and
membership models
Sustainability and
charitable giving
20. Conclusion
CONSUMER BEHAVIOUR & ITS EFFECT ON BUSINESSES
“It is not the employer who pays the wages.
Employers only handle the money. It is the
customer who pays the wages.” - Henry Ford