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Consumers have both functional and ethical demands. There is opportunity for businesses to build trust by appealing to both their immediate needs and ethical concerns. Despite consumers putting functional considerations first, brands have an opportunity to develop their ethical offer, the area brands more often fall short of customer expectations. Businesses have to be seen as responsible as well as high value and quality in the consumers' eyes. Conclusion Rise of the active loyalists DMA insight: How to win trust and loyalty Customer Engagement 2017 How can your business meet consumers’ demands to build more trust and loyalty in the future? Consumers are increasingly loyal to brands, but at the same time they put more effort into researching and finding deals. This paradox is at the heart of the modern customer. Read the full report, by the DMA and Foresight Factory Customer Engagement 2017: How to Win Trust and Loyalty to find out what consumers really think about brands and marketing. Customer Engagement 2017 Campaign Sponsors Rise of the loyalists Overall, loyalty has increased by 8% compared to last year 80% of consumers show brand loyalty: ...for habitual purchases (16%) ...for situational purchases (14%) ...or both (50%) are willing to research to get the best deals claim they would stop buying from a brand if they stopped their special offers 65+ age group 16-24 age group 65+ age group 43% 51% 52% Cautious youth @ @ 16-24 age group 38% Function and ethics Consumers want benefits to be functional: Value 77% Easy 75% Good service 74% Do not lie Be fair Be genuine 65% 66% 64% But good brand ethics are high consumer considerations: Importance vs delivery There is a gap between what brands offer consumers, and what consumers view as important 8/10 4/10 vs For functional benefits there is a modest difference: brands generally deliver on ease, value and service But for ethical considerations, the deficit is larger: About the DMA The DMA provides guidance and support to help its members put their customers at the heart of their one-to-one communications to give them the rich benefits of a much more relevant, welcomed and effective relationship with each individual customer. The DMA aspires to facilitate its members’ marketing evolution with the opportunities, advice, support, networks and tools to be able to reach the sensitivity and sophistication of marketing to build their future prosperity – along with the success of the industry as a whole. https://dma.org.uk/research/customer-engagement-how-to-win-trust-and-loyalty Published by The Direct Marketing Association (UK) Ltd Copyright © Direct Marketing Association. All rights reserved. www.dma.org.uk 2016 Active loyal (those who stay loyal for both routine and special buys) Habitual loyal (stay loyal for routine buys, but look for deals for special items) Situational loyalty (loyal for special buys, pragmatic about routine buys) Active disloyal (no brand loyalty) 2017 2016 2017 2016 2017 2016 2017 Bargain hunters 50% 40% 16% 23% 14% 9% 21% 27% 64% 65% 66% 46% 49% 51% 54% 40% 54% 40% Safe products 12% defict Workers’ rights 14% deficit Be genuine 14% deficit Be fair 16% deficit Do not lie 18% deficit Important to consumers Brands deliver Important to consumers Brands deliver Important to consumers Brands deliver Important to consumers Brands deliver Important to consumers Brands deliver Young consumers find it difficult to know which brands are trustworthy They also find it difficult to know which marketing messages they can trust

DMA insight: How to win trust and loyalty · 2018-06-19 · DMA insight: How to win trust and loyalty Customer Engagement 2017 How can your business meet consumers’ demands to build

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Page 1: DMA insight: How to win trust and loyalty · 2018-06-19 · DMA insight: How to win trust and loyalty Customer Engagement 2017 How can your business meet consumers’ demands to build

Consumers have both functional and ethical demands.

There is opportunity for businesses to build trust by appealing to both their immediate needs and ethical concerns.

Despite consumers putting functional considerations �rst, brands have an opportunity to develop their ethical o�er, the area brands more often fall short of customer expectations.

Businesses have to be seen as responsible as well as high value and quality in the consumer s' eyes.

Conclusion

Rise of the active loyalists

DMA insight: How to win trust and loyaltyCustomer Engagement 2017

How can your business meet consumers’ demands to build more trust and loyalty in the future? Consumers are increasingly loyal to brands, but at the same time they put more e�ort into researching and �nding deals. This paradox is at the heart of the modern customer.

Read the full report, by the DMA and Foresight Factory Customer Engagement 2017:How to Win Trust and Loyalty to �nd out what consumers really think about brands andmarketing.

CustomerEngagement2017

Campaign Sponsors

Rise of the loyalists

Overall, loyalty has increased by 8% compared to last year

80% of consumers show brand loyalty:

...for habitual purchases (16%)

...for situational purchases (14%)

...or both (50%)

are willing to research to get the best deals claim they would

stop buying from a brand if they stopped

their special o�ers

65+ age group 16-24 age group

65+ age group

43%51%

52%

Cautious youth

@@

16-24 age group

38%

Function and ethicsConsumers want bene�ts to be functional:

Value 77%

Easy 75%

Good service 74%

Do not lie Be fair Be genuine

65%66% 64%

But good brand ethics are high consumer considerations:

Importance vs deliveryThere is a gap between what brands o�er consumers,

and what consumers view as important

8/104/10

vs

For functional bene�ts there is a modest di�erence: brands generally deliver on ease, value and service

But for ethical considerations, the de�cit is larger:

About the DMA

The DMA provides guidance and support to help its members put their customers at the heart of their one-to-one communications to give them the rich bene�ts of a much more relevant, welcomed and e�ective relationship with each individual customer.

The DMA aspires to facilitate its members’ marketing evolution with the opportunities, advice, support, networks and tools to be able to reach the sensitivity and sophistication of marketing to build their future prosperity – along with the success of the industry as a whole.

https://dma.org.uk/research/customer-engagement-how-to-win-trust-and-loyalty

Published by The Direct Marketing Association (UK) Ltd Copyright © Direct Marketing Association. All rights reserved.

www.dma.org.uk

2016Active loyal

(those who stay loyal for both routine and

special buys)

Habitual loyal(stay loyal for routine buys,

but look for deals for special items)

Situational loyalty

(loyal for special buys, pragmatic about

routine buys)

Active disloyal(no brand loyalty)

2017

2016

2017

2016

2017

2016

2017

Bargain hunters

50%

40%

16%

23%

14%

9%

21%

27%

64%

65%

66%

46%

49%

51%

54%

40%

54%

40%Safe products 12% de�ct

Workers’ rights 14% de�cit

Be genuine14% de�cit

Be fair16% de�cit

Do not lie 18% de�cit

Important to consumers

Brands deliver

Important to consumers

Brands deliver

Important to consumers

Brands deliver

Important to consumers

Brands deliver

Important to consumers

Brands deliver

Young consumers �nd it di�cult to know which brands are trustworthy

They also �nd it di�cult to know which marketing messages they can trust