Brand Loyalty Increases as Consumers are Prepared to Pay More to Purchase Preferred Brands
MarigoldTM’s Global Retail Forecast Shows Importance of Fostering Brand Loyalty As Cost of Living Rises
Ongoing economic uncertainty and a looming recession have brands and marketers increasingly focused on doing more with less as budgets shrink and needs rise.
This is particularly true for retailers worldwide, which is why Marigold released Retail Forecast: The 2023 Consumer Trends Index including insights, data and advice on the latest consumer purchasing trends brands need to know.
Brand loyalty stands out as a prominent topic within the report, with the stats confirming its continued relevance and importance in the 2023 landscape. Nearly two thirds (59%) of respondents are prepared to pay more to purchase from their preferred brands, with 67% claiming a brand’s loyalty program is an important or critically important factor in winning this lasting loyalty.
Against the current backdrop of global economic uncertainty and rises in the cost of living (which 60% of respondents are very pessimistic about), having an attractive loyalty program is therefore vital for brands. That’s because 46% of consumers said they would rely more on loyalty program benefits this year.
As well as considering retailer loyalty program benefits, the report also suggests consumers will favor brands with strong ethical credentials. Over three fourths of shoppers (82%) say their favorite brand uses their data responsibly. And on a similar theme, almost half of consumers want their data to be used more effectively too, with 49% claiming to be frustrated with the irrelevant content and offers they receive in marketing communications.
Marigold’s forecast suggests that 2023 will be a more difficult year for retailers, with consumers budgeting harder and being less prepared to part with their cash overall. Of those surveyed, 51% are doing more research before buying, 47% are waiting for items to go on sale and 50% are “show rooming” or browsing in-store before buying online or elsewhere.
Despite these shifts in consumer behavior as shoppers stall in the face of tighter purse strings, brands can continue to rely on their existing channels. The report confirms that email and mobile remain cost-effective. Over half (52%) of respondents made a purchase directly as a result of an email (up 4% on last year) while 55% used their mobiles to research potential purchases.
“We’re seeing that economic pressure is forcing even loyal customers to question their brands of choice, which means retailers have to double down on ensuring their communications and loyalty programs are fully on point,” said Tim Glomb, VP of Content at Marigold. “The Global 2023 Consumer Trends Report focuses on helping marketers understand the needs and expectations consumers have for brands in this new environment. This is critical information designed to help marketers successfully interact with their customers.”
With over 6,000 consumers surveyed across the world, the data compiled in the Retail Forecast: The 2023 Consumer Trends Index gives brands the tools to get their relationship marketing right.
