A majority (79%) of consumers admit that as brands personalise their loyalty programs, they are more willing to remain loyal to that brand.
That’s according to a survey of 2,000 consumers on personalisation tactics used by brands conducted by Formation.ai, which uses AI and machine learning to deliver one-to-one offers to customers.
The “Brand Loyalty 2020: The Need for Hyper-Individualization” study also revealed that 33% of customers felt that personalised mobile notifications boosted their brand loyalty, while 39% felt the same way about personalised web experiences.
However, location-based mobile notifications still creep up 18% of respondents, while 26% said the tactic would increase their brand loyalty.
At the same time, 75% of respondents said that basic customisation used in emails was not enough to keep them interested.
For 73%, the brands they engage with most are providing one-to-one level customisation.
The goods news for brands is that 81% of their customers are willing to share personal information as long as the experience is personalised.
“Consumer loyalty has risen to new heights in the last five years, but it hasn’t been a boon for every brand,” said Formation.ai co-founder and CEO Christian Selchau-Hansen.
“Garnering loyalty is increasingly difficult, especially with the economic uncertainty brought on by COVID-19. The need for brands to deliver real value has become more dire as shoppers evaluate purchasing decisions against personal safety and tighter household budgets.”
Although 58% of consumers said they were more loyal to brands than five years ago, some 63% were signed up to just one to three loyalty programs which means that a program must deliver exceptional features for them to be interest.
“The bar for creating consumer relevance has risen dramatically as tech giants like Netflix, Amazon and Spotify deliver increasingly personalized user experiences,” Selchau-Hansen said.
“Consumer expectations for individualized experiences are rising, and the pandemic is accelerating that. If brands want to foster loyalty from today’s consumer, they must deliver experiences and communications so tailored they feel as if they’ve been crafted for just that one person.”