June 4, 2019

Data: Over Half of Consumers Will Pay More to Buy from a Retailer They’re Loyal to

Yes Marketing finds most people rank value/quality of products as their top driver for loyalty to retailers

DALLAS, June 4, 2019 — Over half of consumers say they will pay more to buy from a retailer they’re loyal to, indicating a significant opportunity for brands to drive long-term revenue from their loyal customer base, according to a new study by Yes Marketing.

In “The Retail Shopper’s Journey to Loyalty” report, Yes Marketing surveyed over 1,000 retail shoppers to identify their priorities and motivations as they move along the customer journey, from initial interaction with a brand to brand loyalty. The report revealed that 41% of consumers rank product quality/value of products as the top reason they’re loyal to a retailer while 35% rank price highest.

The findings indicate that elements like free shipping perform well in driving purchases with new customers but are less influential for long-term loyalty. In fact, only 3% of shoppers ranked free or expedited shipping as the top driver of loyalty. On the other hand, 40% of consumers ranked it as the top convenience factor they consider before making a purchase with a new retailer. Marketers can leverage these findings to prioritize the benefits they communicate to customers at different points in their journey.

“The seamless and personalized consumer experience, which is a critical component of loyalty, has become table stakes,” said Jim Sturm, president of Yes Marketing. “It takes so much more to deliver on the different expectations customers have for retailers at each stage of their journey. Smart brands must differentiate between effective acquisition tactics and effective loyalty strategies. This distinction can help brands increase lifetime customer value and create truly successful lifecycle programs.”

In terms of rewards, the report found that cash is king with 39% of consumers reporting that cash incentives make them feel most rewarded for their loyalty, followed by early access to products (23%) and exclusive promotions (18%).

“With the continuous evolution of the retail sector, retailers must build strong customer relationships to create lifetime loyalty and drive revenue,” said Michael Iaccarino, CEO and chairman of Infogroup, parent company of Yes Marketing. “Given the significant impact customer loyalty has on business results, retailers need to find a service and technology partner who can enhance and execute their marketing strategies to adapt to changing consumer expectations.”

Additional findings from the report include:

  • Overall, 73% of consumers report that they feel adequately rewarded for their loyalty.
  • Only 9% of consumers say points toward specific rewards is the top factor for feeling rewarded for their loyalty.
  • Similarly, just 9% of consumers say free or expedited shipping is a top factor in making them feel rewarded for their loyalty while just 1% ranked access to exclusive events as their top choice.
  • Memorable or exciting marketing communications, convenient returns options and social responsibility were the least influential loyalty drivers, with only 1% of consumers ranking these as the most influential factor in driving loyalty.

To learn more about what motivates consumers’ loyalty to retailers, download the full report here.

About Yes Marketing

Yes Marketing focuses on enabling marketers to engage, acquire and retain consumers along each stage of the consumer journey with a brand – from awareness through consideration, purchase and lifetime loyalty. This is accomplished through a unique combination of expert marketing services, best-of-breed technology and proprietary data assets that enable brands to create and deliver truly personalized, data-driven customer experiences with the help of a single vendor with an integrated technology and service offering. To learn more, call 1-877-937-6245, email [email protected] or visit www.yesmarketing.com.

About Infogroup

Infogroup is a leading provider of data and data-driven marketing solutions. Infogroup provides data, technology and services that help marketers acquire new customers and maximize the value of existing relationships. The company’s data and marketing solutions help clients of all sizes, from local SMBs to FORTUNE 100™ enterprises, increase sales and customer loyalty. Infogroup provides both digital and traditional marketing channel expertise that is enhanced by access to our proprietary data on 280 million individuals and 24 million businesses. For more information, visit www.infogroup.com.