43% of consumers have stopped engaging with a program because the rewards offered are not valuable to them, 32% have stopped because the rewards aren’t relevant to them.
Cheetah Digital, a cross-channel customer engagement solution provider for the modern marketer, today announces the results of its 2020 survey in conjunction with eConsultancy, “Is your marketing strategy out of touch?” The report discusses the findings of a 30 point survey of nearly 5,000 consumer’s point of view on privacy, messaging, personalization and brand loyalty.
Winning CX will come from Brands who can balance relevance, consistency and convenience to drive engagement. The kind of engagement that drives optimal customer lifetime value and real business impact.
The fall of the third-party cookie and subsequent rise of consumer privacy legislation has made it harder than ever for brands to understand consumer behavior and connect through the channels they have always relied on. In current, sensitive times, during a global pandemic, it is more important than ever brands deliver clear and concise communication that consumers actually want to receive. Consumers’ personal data informs nearly every facet of a brand’s marketing plans but their willingness to share it is changing rapidly, so brands must provide value in exchange for a consumer’s data without relying on third-party cookies. Nearly 40% of consumers aren’t comfortable with brands using personalized ads or cookies. However, 89% of consumers said they are willing to share their data with a brand in exchange for discounts or coupons, or loyalty points or rewards.
“These moves are putting power into the hands of consumers,” said Richard Jones, CMO of Cheetah Digital. “Marketers must think through the value exchange they offer consumers to incentivize data collection, ongoing engagement and loyalty. And brands must unify their data to power personalized marketing that isn’t derived from “snooping.”
To build a strong loyalty program, brands first need to have solid goods and services as this is the top driver of loyalty for 52% of consumers. With great offerings, the loyalty program also has to share relevant offers for consumers, discounts and coupons being rated as most important. Three-fourths of consumers report halting engagement with programs in which offers weren’t valuable or relevant to them. This reinforces the need to engage with consumers, provide value in exchange for their preferences and data in order to create a loyalty program with enticing offers and personalized experiences.
“Loyalty programs are getting a turbo charge in terms of their importance to marketers given all the privacy related disruption in adtech. Direct engagement and rewarding repeat interaction and advocacy has never been so important. We hold ourselves accountable for being the experts in loyalty to lead our customers to create best-in-class loyalty programs,” said Jon Siegal, vice president of Global Loyalty Sales at Cheetah Digital. “Because just eight percent of consumers aren’t members of at least one loyalty program, brands have a monumental opportunity to leverage loyalty as a way to not only drive sales, but to build brand advocates.”
Additional findings from the report include:
- 43% of consumers have stopped engaging with a program because the rewards offered are not valuable to them, 32% have stopped because the rewards aren’t relevant to them
- Consumers are most willing to share: product feedback (55%), information on products they may buy in the future (42%, and information on past purchases (42%)
- 73% of consumers made a purchase in the last 12 months from an email sent by a brand or retailer
- Consumers are most likely to engage with brand messaging between 5pm – 10pm
- 71% of consumers expect a loyalty program to offer redeemable points, 66% expect discounts on products and services
This article originally appeared in MarTechAdvisor.
