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

Conversations over a cuppa with CMO: Coles Group's Lisa Ronson

​In this week's instalment of Conversations over a Cuppa with CMO, we talk with Coles Group CMO and our former #1 in the CMO 2018, Lisa Ronson, about how the supermarket giant has approached marketing and customer engagement and how she's coped with the transformative and significant impact of the COVID-19 crisis as a leader and brand strategist.

More Videos

Modernization on marketing to promote products and business is really a big leap especially the age of social media. Thanks for sharing s...

Brayden Manchee

How National Tiles used digital personalisation to deliver 15 per cent of revenue online

Read more

Great write-up. I wrote an article about ASMR as well and the top ASMRtists:https://medium.com/illumina...

Dexx Mason

ASMR: Flash in the marketing pan, or something more?

Read more

Nice to be visiting your blog once more, it has been months for me. best mp3 converter

Yolanda R. Skillman

Melbourne Fashion Week: Using digital and insight to drive engagement and attendance

Read more

Typically I visit your web journals and get refreshed through the data you incorporate yet the present blog would be the most obvious bes...

Yolanda R. Skillman

What automated design is going to do to 3D printing and product customisation

Read more

I am overpowered by your post with such a decent theme. best mp3 converter

Yolanda R. Skillman

Report: Accountability key to marketing's influence in business

Read more

Blog Posts

The 10 commandments of marketing in COVID times

With social and economic uncertainty and the changing political landscape, how can CMOs adapt to seize opportunity?

Duncan Wakes-Miller

GM, marketing, Audika Australia and New Zealand

Why direct response advertising is winning this year

In response to the COVID-19 crisis, brands around the globe are going into hibernation and waiting out the ongoing storm. CMOs have dramatically slashed their budgets across every single form of media, digital included.

Sabri Suby

Founder, King Kong

Taking back control of your tech

To win in customer experience, brands need to take back control of their technology.

Michael Titshall

VP, managing director, R/GA Australia

Sign in