It may seem counterintuitive, but discounts are less important than emotional connections in creating brand loyalty, according to The Power of Trust and Emotions in Building Customer Loyalty, a study from Bloomreach conducted by EMarketer.  

Of the marketers polled, 58.4% say emotional connections — i.e., beliefs and values — are most important, while 41.6% claim that transactional incentives such as coupons, discounts and gamification rank first.  

Here are the personal factors that actually build loyalty:

• Customer experience — 59.1%
• Emotional connections — 58.4%
• Trust and reliability — 44.1%
• Available customer support — 32.5%

Meanwhile, 75.3% of brands use personalized marketing in loyalty programs, and 85.7% consider it at least somewhat effective. But 68.8% of marketer polled feel customers are more loyal when they are economically secure.

Remember that these are marketers talking — not consumers. A recent study by Klaviyo found that 74% of shoppers welcome more personalization, but only 34% had gotten it in the prior half year.

Other surveys found that financial incentives are indeed important—like free shipping. And this study seems to confirm that. Here are the factors that are most likely to further customer retention: 

• Available customer support — 32.5% 
• Free delivery — 22.1%
• Future discount — 17.5%
• Free returns — 13% 
• Fast delivery — 9.1% 
• Other — 5.8%

But here’s the main takeaway. 

"Customer loyalty has never been about competitive pricing or rewards programs," says Amanda Cole, chief marketing officer, Bloomreach. "What truly drives lasting relationships is the emotional connection brands forge with consumers through personalized experiences, trustworthy data practices, and meaningful post-purchase engagement.”  

Cole adds: “Companies that invest in understanding and responding to their customers' emotional needs go beyond creating loyalty programs because it’s the thing to do — they're creating brand advocates." 

Bloomreach and EMarketer surveyed 154 marketing professionals worldwide.