Consumers crave personalization — so much so that 81% will share personal information to get it, and 50% will even pay a premium for it, according to to Brand Loyalty 2020, a study by Formation.
And some firms get it — 73% of consumers feel a level of 1:1 engagement with their favorite brands. But few companies are at that stage, the proof being that 77% feel brands should be doing more to earn their loyalty.
That’s especially true when it comes to email.
Putting a consumer’s name in an email is no big novelty— in fact, it’s now "table stakes," the study notes.
Of the consumers surveyed, 75% say marketing emails often include their name. But names and basic demographics like gender are the most basic levels of personalization — and far from 1 to 1.
“Being addressed by name might be a nice gesture, but if the marketing email doesn’t contain any products or information relevant to the user’s lifestyle, the effort is wasted,” the study notes.
However, only 20% say they receive marketing emails featuring content relevant to their lifestyles, interests, attitudes and past purchases “extremely frequently. “
And a paltry 18% say they get emails with content so unique to their needs that it recognizes them as individuals.
The top 5 personalization strategies most likely to increase brand loyalty are:
Oddly, the 5 strategies most likely to decrease brand loyalty are similar:
Here are a few more relevant stats:
Finally, here is the most promising stat of all: 58% say they are more loyal to brands than they were five years ago.
Formation surveyed 2,000 consumers in the U.S.