Retail sector is best at inspiring loyalty

An Arvato Loyalty Services product story
Edited by the Marketingservicestalk editorial team Aug 27, 2007

Research from arvato loyalty services among over 1,000 UK consumers has revealed that the retail sector inspires the most brand loyalty, with almost a third of favourite brands being in this sector.

Supermarkets account for four in every five retail favourite brands indicating that consumers do actually feel loyalty towards the brands they buy.

The report also reveals that 85 per cent of adults say that they are loyal to their chosen brand, with a quarter rating that feeling of loyalty as ten out of ten.

In second and third place came the food and drinks market and financial sector respectively, the latter surprisingly winning one in eight respondents' approval as their favourite brand in this category.

These findings also reveal the top five 'loyalty inspiration' factors, the aspects of a brand that consumers consider the most important it inspiring and securing their loyalty.

These included: quality products; helpful, knowledgeable staff; ease of contact; being able to recognise customers and their value; and a brand experience that is enjoyable at every single touchpoint.

These results were consistent across both genders and across all age groups, with the exception of 18-24s and thirtysomethings, who consider their fifth most important factor to be how well 'the brand's image fits my personality'.

However, fewer than 10 per cent of respondents considered brand 'cool' or peer pressure to have a substantial affect on their brand loyalty.

Graham Ede, Managing Director, arvato loyalty services, commented: "Whilst the basic concept of loyalty and relationship management should evidently not be challenged, best practice to translate loyalty initiatives into commercial success still seem to remain - in the minds of consumers - the province of a handful of leading brands.

"Companies with loyalty schemes, or contemplating loyalty initiatives, would be well advised to investigate what their customers feel would inspire their loyalty, as the fundamental building block of any such initiative's commercial success".

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