Study says most marketers misconstrue customer loyalty

New Ideas in MarketingEssential news for marketers, summarised by YouGov
October 22, 2019, 1:38 PM GMT+0

33% of senior marketers believed customer loyalty is based on “consistency of transactions”.

This piece cites a report from the CMO Council stating that brand marketers have a “dangerously outdated view of customer loyalty”. As per the report, one in three of the surveyed senior marketing decision-makers believed loyalty is predominantly based on the consistency of transactions as against a “lasting bond of allegiance”.

About 40% of respondents defined a loyal customer as someone who regularly purchased their products or is enrolled in an awards program. Given how the respondents equated consumers’ convenience with loyalty, this metric could be misleading.

A reason for this dissonance is maintaining separate strategies for brand experiences and customer engagement. However, the CMO Council says that recognising that the loyalty extends beyond relationships built on savings, rewards or promotions could be a solution.

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