Rare: loyalty 2020

Spring 2019

The Research

If the marketing industry can’t agree on a common definition of loyalty, how will consumers understand what it means for them? We interviewed a panel of UK marketers and polled 1,000 UK consumers to examine attitudes towards loyalty as we head towards a new decade - one that will be critical for retailers and brands.

 
 

The findings

Consumers told us loyalty means different things to different age groups, but that trust and choice is driven by three crucial factors:

 
Top three factors for boosting trust and loyalty. Data from Rare's Loyalty 2020 report.
 

The report also benchmarks brands in the hospitality, retail, fitness entertainment streaming sectors based on their ability to create loyalty. Key findings include:

  • Netflix, Hulu, Spotify and other streaming providers are more successful at engendering loyalty than more traditional bricks and mortar product and service providers. Data plays a crucial role in creating services that help make brands “sticky” with their customers.

  • Netflix is the only brand in an examination of 50 across all five sectors that was shown to deliver on its customer promise. Almost half of the consumer respondents subscribe to it, while 83% value the brand’s location and quality as its most pleasing attributes among six that were tested.


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If you have got customers who are just functionally satisfied they are less likely to recommend you to friends, but if customers have an emotional attachment in place they will recommend you and stay with you longer. Brands need to think what customers need and want, and about the customer’s journey to drive long-term loyalty and how to put an emotional angle that works for different customer segments.
— ALISTAIR ROBERTSON, HEAD OF CUSTOMER INSIGHT, SANTANDER UK
Subscription is the ultimate loyalty and because customers subscribe, they want to have the money’s worth of the subscription. Netflix in particular is able to deliver on its promise because the core company is set up to understand customers’ preferences.
— RYAN DAVIES GROUP LOYALTY LEAD, ARGOS
Brands need to think beyond marketing and consider all aspects of their business model, so they can cope with customer demand when growth comes. More boutique brands, such as craft beer, have grand plans and want to do things differently. However owners need to think beyond their market position and consider their growth model and fulfilment to make sure that service is consistent.
— CATHERINE WARRILOW HEAD OF PR , BWP GROUP

Found that interesting? Check out our other reports.