The interactive ad agency Razorfish is out with a new study on the nature of loyalty, making the observation that while marketers tend to believe that loyalty comes from emotional devotion, which they presumably nurture through a variety of means, in fact loyalty is “driven by far more practical factors – convenience, product performance, and situational need.”
According to the study, “65% of marketers believe repeat buyers return because of their love for the brand/company. In reality, love for a brand may not be enough of a driving force for consumers to remain loyal. Across categories such as groceries (23%), streaming platforms (20%), or hotels (17%), less than a quarter of respondents agree love for a brand is a major motivator for repeated purchases.
“Loyalty programs still matter, when they are useful. Consumers actively participate in the programs they are a part of, with the goal of receiving points and rewards for their loyalty (57%). For 45% of respondents, the benefits of loyalty programs have become more valuable than they used to be. However, satisfaction surrounding some programs falls short.”
The report says that “soft benefits take center stage. While discounts and points still motivate participation, softer perks—like exclusivity, early access, and VIP treatment—rank among the strongest loyalty drivers across generations, while also promoting brand health. Exclusivity is important, with 30% of respondents wanting access to limited edition drops, while 28% are interested in invitations to exclusive events or content.”
One interesting note: “AI that looks like AI unsettles brand loyalty. While the topic of AI and brand usage is incredibly nuanced, 37% say it has a negative impact, 38% say it has no impact, and 24% say it has a positive impact. However, when asked if they are able to identify when AI is being used in advertising content, less than two-thirds of respondents could tell.”
KC’s View:
I would question whether this is true across-the-board. I’d be willing to bet, for example, that love is more critical to people’s loyalty to Dorothy Lane Market or Central Market or Stew Leonard’sthan convenience – people love those retail brands so much that they’ll go out of their way to get there. Same for non-retail brands such as Apple – we pay more because we love the brand.
But Amazon? I think it is fair to say that I am loyal to Amazon because it is the ultimate in convenience. Not because I love it.
In fact, I think some of the study’s assertions are being challenged and proven these days, as brands sometimes behave in ways that even their most loyal customers find distressing. Sometimes, love is tested. Brand loyalty has its limits.
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