Brand loyalty a challenge for marketers
13 July 2018
New report highlights importance of value and quality.
Australian consumers are more concerned about price than brand loyalty, according to a new local marketing report.
Salmat’s 2018 Marketing Report compared consumers’ shopping habits with the perceptions and practices of marketers.
Salmat, which specialises in digital catalogues and letterbox marketing, found customer loyalty continues to be a challenge for marketers in Australia, and to maintain brand loyalty, marketers must focus on value and quality.
The report reveals nearly one-fifth of Australians are loyal to only one or two specific brands and two in five consumers buy the products they need without taking much notice of the brand.
The findings show consumers are increasingly price sensitive, meaning price is a bigger influencer of purchase decisions than brand loyalty. Sixty five per cent of respondents agreed they like to try new products if they're on sale, or if they receive a discount or points for purchasing.
Following competitive pricing, consumers said quality of the products (80 per cent) and customer service (76 per cent) are the most important brand attributes to maintain loyalty. Positive online reviews (61 per cent) and free trials, samples and discounts (48 per cent) were also rated as important factors for maintaining brand loyalty.
“Winning customer loyalty is almost impossible to do today. Instead, the opportunity for marketers is to focus on ensuring they are getting the best price for their products in front of consumers via the right channel,” according to Andrew Lane, Salmat’s head of sales and client engagement.
“This could be through an integrated approach using print, letterbox and digital - depending on the consumer’s preference. Marketers are under a lot of pressure to increase brand loyalty and the recent research shows that if brands can remain competitive on pricing, and communicate that to consumers through the right cost-effective means like catalogues, search and email, they have a higher chance of increasing sales.”
According to the report, 86 per cent of marketers agree technological advancements help collect better customer insights and customer analytics, but 68 per cent of marketers found it challenging to use the same technology to help create lasting one-on-one relationships with customers
Additionally, consumers demand personalised shopping experiences. Consumers reported they expect marketers to use the information they have on them to offer a more personalised and one-to-one experience.