Report: Promotional offers confusing brand message to consumers

Study finds consumers making purchase decisions based on emotional triggers to cut through the promotional clutter faster

Customers are increasingly empowered in their purchasing, and yet they continue to get lost in the promotional fray from brand messaging, according to the latest AIMIA Global Emotional Loyalty Study.

Loyalty solutions business, AIMIA, found transactional loyalty is not enough and the challenge is for brands to build one-to-one emotional connections with customers to increase visits and transactions and drive growth.

The survey looked at what attributes, benefits and values make consumers emotionally loyal to a brand and their program, with a particular focus on countries including the US, UK and Australia. It considered whether marketing leaders align their budgets and efforts with the emotional drivers of consumer loyalty, and how well brands are personalising to their customers.

The report examined retail, credit card, CPG, airline, hotel and telco programs for four criteria: Rewards, ease of use, customer data use and member treatment and the opportunities in each category. It compared the attributes which make customers loyal vary by region and vertical, and that emotional loyalty is built through more than just rewards.

However, it found most programs are indistinguishable globally, and are largely spend-and-get models with few exceptions.

When it comes to the ideal loyalty program for Australia, the survey found the greatest drivers for an ideal loyalty program are rewards on offer and ease of using the program. In particular, programs with flat value exchanges, such as spend $100 dollars, earn 1,000 points and receive a $5 voucher, may appeal most to consumers, and a simple tier structure based on spend can do the same. In addition, full transparency behind data collection, ideally to personalise their journey, can assist with the value exchange between the customer and brand. 

The report also found CMOs are allocating much of their budget to acquisition, when they could be more profitable focusing on retention efforts and personalisation. AIMIA said ample opportunity exists for personalisation across all verticals in each region, although marketers aren’t leveraging the data they’re collecting.

AIMIA said the challenge is for brands to create unique programs distinct from their competition, and to make the leap into individualised loyalty.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia.    

 


Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Thank you for sharing your knowledge. Definitely bookmarked for future reading! Check this website https://a2designlab.com/ with lots of ...

Pierce Fabreverg

Study: Gen Z are huge opportunity for brands

Read more

Thanks for sharing. You might want to check this website https://lagimcardgame.com/. An up and coming strategic card game wherein the cha...

Pierce Fabreverg

Board games distributor partners with Deliveroo in business strategy pivot

Read more

Such an important campaign, dyslexia certainly need more awareness. Amazing to see the work Code Read is doing. On the same note we are a...

Hugo

New campaign aims to build understanding around scope and impact of dyslexia

Read more

Great Job on this article! It demonstrates how much creativity, strategy and effort actually goes to produce such unique logo and brandin...

Pierce Fabreverg

Does your brand need a personality review? - Brand vision - CMO Australia

Read more

Here’s an article on solving the most complex customer queries without a delay. Hope it helpswww.engati.com/blog/address...

soham

How to manage social media during Covid-19

Read more

Blog Posts

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Predicting the Future: Marketing science or marketing myth?

Unicorns, the Sunken City of Atlantis, Zeus: They are very famous. So famous in fact, that we often think twice about whether they are real or not. Sometimes if we talk about something widely enough, and for long enough, even the strangest fiction can seem like fact. But ultimately it is still fiction - stories we make up and tell ourselves over and over until we believe.

Kathy Benson

Chief client officer, Ipsos

Winning means losing in the game of customer retention

At a time of uncertainty and economic hardship, customer retention takes on much greater importance. CX Lavender’s Linda O’Grady examines the big grey area between ‘all’ and ‘best’ customers when deciding who is worth fighting for and how.

Linda O'Grady

Data Strategy Partner & Business Partner, CX Lavender

Sign in