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:
- Personalized website experience
— 39%
- Personalized marketing email — 33%
- Personalized mobile notifications — 33%
- Personalized discounts — 29%
- Location-based marketing
via mobile — 26%
Oddly, the 5 strategies most likely to decrease brand loyalty are similar:
- Personalized website experience — 32%
- Personalized
email marketing — 32%
- Personalized mobile notifications — 27%
- Personalized discounts — 20%
- Location-based marketing via mobile — 18%
Here are a few more relevant stats:
- 83% will do so if the brand is transparent about how the data will be used. And 34% are extremely willing.
- 73% are more
likely to engage with a brand that offers a loyalty program than a company that doesn’t.
- 79% say the more personalization tactics a brand uses, the more loyal they will be.
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.