Dive Brief:
- About two-thirds of consumers say they believe brands value new customers more than existing ones, according to a survey released Friday by email marketing platform GetResponse. That share rises to about 70% among customers who repurchase monthly.
- However, nearly 7 in 10 brands say their budget is split evenly between retention and acquisition, according to the survey. GetResponse surveyed 2,400 consumers and 600 direct-to-consumer and e-commerce brands in the U.S., the U.K., Germany, Spain, Italy and Romania.
- Larger brands invest more into retention, with 40% of brands with over $50 million in revenue ranking customer retention as their top growth priority. The share falls to 29% among brands under $5 million in revenue.
Dive Insight:
Customers want brands to recognize them as loyal customers, and they’re looking for more than discounts or rewards.
“I think most of us have had that moment when we see a great introductory offer and realize it's only for new customers,” Patricia Camden, managing director and customer experience and loyalty leader at EY, said in an email. “Meanwhile, we've been loyal for years, and there's no acknowledgment of that history. That creates a perception problem very quickly.”
Loyalty research at EY has consistently found that customers want to be recognized in meaningful ways, according to Camden. A well-designed loyalty program can make the difference by not just attracting newcomers but recognizing the tenure and preferences of loyal shoppers.
“The brands that do this well embed loyalty into everyday experiences, not just promotional moments,” Camden said. “When loyalty programs are built around customer insight, and their specific triggers for recognition relevance, they shift the perception from ‘brands only care about new customers’ to ‘this brand values my long-term relationship.’”
Customers are willing to contribute to the brand-customer relationship, according to GetResponse. The survey found that 91% of consumers are willing to share personal preferences with a brand in order to receive more rewards or offers.
Customer recognition goes beyond loyalty points, according to Camden. The benefits can’t be one-size-fits all rewards, either.
A recent EY loyalty study found that many women say being recognized on their birthday matters to them, while milestone recognition doesn’t carry the same weight with men, according to Camden.
Frequency of rewards matters as well. EY found that some customers want frequent offers, but others seek rewards that are less common but feel tailored or special.
Across all customers is simply a desire for value, according to Camden.
“Another theme that continues to rank in our research is value beyond discounts,” Camden said. “Exclusive services, member events, unique experiences and benefits with partner brands can resonate more than just a coupon or an offer.”
These findings are in line with GetResponse’s research. Most customers are looking for opportunities to feel like a VIP, with 93% saying they are likely to join an exclusive experience or recognition offered only to loyal customers if their favorite brands offer one.
