By now we know the power that social media wields – particularly for a brand's bottom line. A viral campaign could take you into cult-favorite territory, but a trendy new competitor could wipe you off the map fast. Backed by key findings from 5WPR's fourth annual Consumer Culture Report, agency co-CEO Dara Busch shares advice for brands looking to bolster brand loyalty in today's socially driven landscape.
While social media plays an enormous role in purchasing influence, it’s also diluting brand loyalty. In the past, shoppers were keen on staying loyal to the brands they knew and trusted. In today’s socially driven world and a shaky economy, an influx of fast-adapting competitors prompt shoppers to reconsider their choices at every point throughout their buying journey. The data shows consumers willing to jump ship, especially when it comes to saving.
Marketers must work harder than ever to not only predict consumer behavior but keep their most valuable customers. Let’s look at some factors influencing–and hindering–loyalty, and how brands can leverage social media to keep consumers from abandoning their carts.
Make Your Offers Pop on Social
66% of consumers would be likely to switch away from a brand they know and trust to a value-based alternative. Clearly, they’re prioritizing saving. Discounts are key (and obvious), but they need to be quick, easy and communicated clearly to the right audience to be truly effective. Develop a media strategy that incorporates meaningful and time-sensitive flash sales. If a top seller among 25- to 34-year-olds is back in stock, hyper-target repeat buyers in this category with a limited-time discount. Social ads are working with consumers, but you must have a thumb-stopping strategy for your offer to stand out to the right customer.
The Customer Experience is As Important as the Product
Value goes far beyond the product. For the customer, the shopping experience is just as important as what they’re buying. With infinite choices literally at their fingertips, shoppers question everything, leaving brands to justify themselves or risk losing a customer. Even shipping fees can turn customers off; when asked, 30% of shoppers don’t feel that any same-day shipping fee is justifiable, and 40% believe same-day shipping should only cost up to $10. If cutting primary costs isn’t an option, make shoppers feel better about spending with your brand by removing some of the commitment from their purchasing decision. Think try-before-you-buy programs, BNPL, and free, easy returns.
Influencers May Have More Loyalty Power Than Brands
With paid social ads and influencer posts making the list of top-three purchase influences, it’s obvious that while brand loyalty appears to be declining, influencer loyalty is not. “Digital word-of-mouth” is now a thing, with Gen Z and Millennials checking in with their influencer “friends” regularly for a look at the brands they’re using in their daily lives.
Influencers are not only aspirational and relatable, but they’re also transparent and responsive. Consumers who engage positively with them are likely to get a response, bolstering their trust in them. Moreover, followers are being offered a deal most of the time through affiliate marketing. Because content creators play such a significant role in influencing brand loyalty, marketers would be smart to put dollars in this bucket. Determine the who, where, and what, and then enlist macro-influencers to boost brand loyalty.
Naturally, each consumer group is making different demands. Keeping the above in mind, marketers would benefit from a deeper dive that uncovers those potential points of conversion for each consumer base, and develop a strategic, data-driven approach to gain their loyalty.
The research was conducted by Censuswide, an independent market research consultancy, with a nationally representative sample of 2,000 US consumers between the 21st and 24th of November 2022. Censuswide is a member of the British Polling Council and abides by and employs members of the Market Research Society. All survey panelists are double opted-in, in line with MRS code of conduct and ESOMAR standards.
5W's in-house research & analytics practice leveraged an AI-based natural language processing tool in order to visualize, aggregate and analyze the most salient media conversations surrounding inflation, consumer spending habits and supply chain impacts over the past calendar year (November 2021 - November 2022). Insights gleaned from this analysis were paired with Censuswide's consumer survey data to ensure synergies in 5W's reporting.
