Almost half of shoppers only stay loyal to brands for discounts

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With retailers desperate to entice shoppers back through their doors after months of disruption, new global research from retail experts, Emarsys, reveals that almost half (45%) of shoppers only stay loyal to brands due to being regularly offered discounts, points, and rewards.

For the retailers that survived this turbulent time, competition between brands is fiercer than ever before — and keeping shoppers loyal is a growing challenge. With this in mind, Emarsys has launched its new Customer Loyalty Index which reveals five ‘Loyalty Types’ that all consumers experience in varying degrees:

• Incentivised Loyalty – Developed through discounts, rewards and incentives 
• Inherited Loyalty – Built via association with other brands 
• Silent Loyalty – Held by customers without public advocacy or endorsement 
• Ethical Loyalty – Founded on strong emotional connections and shared values
• True Loyalty – Formed of unshakeable advocacy and love of the brand 

By recognising these different loyalty types and evaluating how customers fit within each category, brands can create a tailored marketing strategy to communicate and engage with each customer in a unique way. 

Emarsys’ Customer Loyalty Index incorporates data from over 7,000 consumers across five countries. It reveals that ‘incentivised loyalty’ is the most popular among shoppers. In comparison, only one in five (20%) admit to being loyal due to having an emotional connection with the brand and just 19% are loyal to brands because they reflect their personal ethics. 

Price is clearly a strong motivation for shoppers across the world. Over half (58%) admit to switching products if a cheaper option is available and a further 53% will shop indiscriminately, depending on their circumstances.  

Commenting on these findings, Payal Hindocha, Director Customer Engagement Solutions GTM at Emarsys said: “It’s well-known that shoppers are motivated by price – everyone loves a discount or a reward to make them feel like they’ve snagged a bargain. However, the key for most retailers is keeping these consumers coming back again and again, rather than only shopping with you for a cheap deal. This is a fundamental part of building greater customer loyalty. 

“One way to dial up what we call ‘incentivized’ loyalty is through a customer-facing app. This not only provides shoppers with real-time, contextually relevant offers that are unique to them, it also provides your brand with important customer insights. This behavioural data can be used to drive engagement with relevant experiences that anticipate and deliver what customers want — when and where they want it, at scale. Targeting a customer with the right incentive, at the right time, and on the right channel is vital for driving first-time customers to repeat purchases and ultimately, creates more loyal customers.”