Aussie consumers’ loyalty is primarily influenced by the price tag, however emotional connection and ethical values will become key loyalty drivers, according to a consumer research by Emarsys.
About 65 per cent of 1000 Australian consumers surveyed said they will choose other brands if a cheaper option is available. More than half of respondents said consistently low prices are the top reason for staying loyal to a retailer.
“Incentivised loyalty exists and can lead customers to shop regularly while also considering themselves brand advocates,” said Adam Ioakim, MD at Emarsys Apac. “Having a quality product or experience is no longer enough.
“Brands must also work hard to provide attractive prices and valuable offers.”
Meanwhile, 60 per cent of consumers consider the product range factor to decide to stay loyal to a brand.
The research found that consumers’ loyalty will also be driven by emotional connection and strong social and ethical values.
“Compared to other generations, millennials and Generation Z as a cohort tend to be much more influenced by emotional drivers when it comes to loyalty,” said Ioakim. “They favour a personalised, human connection and shared social values and hold these almost equal to experience when it comes to building loyalty.”
However, more than a quarter of respondents said they will stay loyal to a brand despite disagreeing with their ethics. This trend, called ‘silent loyalty’, sees consumers showing loyalty to brands by shopping with them regularly, but without advocacy.
“Consumers may be silently loyal due to competitive prices, next-day delivery or a wide range of products, without actually considering themselves to be a brand ambassador,” said Ioakim.