According to Oracle’s 2018 report on “The Loyalty Divide”, fewer than a third of consumers believe that the loyalty rewards and offers they receive are relevant to them, although 58% of retailers think they are. Are you aligned with what your customers are seeking from you?
Consumers today value novelty over consistency, and trust each other over institutions and brands. They are redefining loyalty by calling the shots themselves: shifting their allegiances from brands to smaller worlds of curated, like-minded populations which share their values, while also seeking out more opportunities for novelty and change in their lives.
Consumer attitudes increasingly favor membership over loyalty, where consumers “belong” and yet still feel “unique”.
Kantar’s recent U.S. MONITOR client deliverable, Download on Membership, reinforces this new paradigm to suggest that today’s loyalty proposition is based upon five pillars which should inform brand and marketing strategy at every stage of the customer journey.
And each pillar is going to be valued differently by different consumer groups.
SO HOW DO YOU KNOW WHICH LOYALTY PILLARS ARE IMPORTANT TO YOUR CUSTOMERS?
Kantar’s attitudinal segmentation, MindBase®, identifies 11 unique consumer segments, clustered together by generational commonalities, yet each with their own unique values and attitudes. Built from the U.S. MONITOR, and projected onto a U.S. marketing database of 260M adults, MindBase can be linked to digital platforms and your own customer database for insight and activation.
HOW CAN MINDBASE BE USED TO DETERMINE YOUR CUSTOMERS’ LOYALTY PILLARS?
One way to assess your loyalty initiative, is to look at your customers and your strategies through the lens of MindBase. This can allow you to uncover which consumers place greater value on one pillar vs. another.
For instance, our U.S. MONITOR research reveals that only 43% of consumers 18+ believe that offering loyalty/rewards programs is an important attribute in deciding where to shop. But of course that’s the perspective across the total population.
Our MindBase® attitudinal segments reveal that Millennial Omni Explorers and Boomer Compassionate Creatives both value rewards programs more so than their counterpart generational segments. Both of these consumer groups are comprised of creative and spontaneous individuals, who influence others via social media and consciously seek ways to stretch their finances. Rewards can provide both a financial incentive as well as a unique way to be recognized by promoting brand engagement, appealing to these two seemingly different consumers.
One can also look at differences within a generational cohort. For example, the Personalization Pillar is valued by over half of consumers, regardless of generation. But a closer look at the four Millennial segments shows some unique differentiation. Novelty and “uniquely for me” are sought after in particular by Millennial cohorts Ambitious Realists and Omni Explorers – demographically similar, yet attitudinally different.
The Ambitious Realists segment is working its way up the corporate ladder and working down its college debt. Life is speeding up with the demands of work and family. Things like new experiences, personal relationships and professional aspirations are taking a backseat to, well, life. They are loyal to brands that tailor their offering and let them choose what fits their specific need.
Omni Explorers are actively engaged with brands through social media, and are influenced by what they see from brands and by social influencers, a role they like to play themselves. This group seeks brands that can allow them to curate their own style – and will gladly showcase those brands which help them reflect to others their stylish and “in-the-know” sense of self.
SO WHAT DOES THIS MEAN FOR YOU?
Knowing which pillars comprise your loyalty initiative, and which are the most important to your best customers, can set you apart from your competition – and ensure long-term customer loyalty.
MindBase insights helped IKEA reposition its loyalty initiative and new store launch for success.View Client Story
When was the last time you evaluated your loyalty program or engagement tactics by integrating attitudinal data tools into your planning and execution?
Download our latest thinking on Loyalty and Membership.