Loyal customers—the frequent fliers or the twice-a-week pastrami sandwich eaters—are the lifeblood of any commercial enterprise. Here’s a snapshot of their identity and value.
Posted: October 23, 2014
The report was based on data from a survey of 2,200 online U.S. adults, 26 percent of whom were determined to be “brand enthusiasts”—defined as those who say they are likely to recommend preferred brands to friends and who make almost all relevant purchases from those brands now and in the future.
Brand enthusiasts are fairly evenly distributed among age groups and income levels, and they are also nearly evenly split by sex (47 percent female, 53 percent male), the analysis found.
Moreover, brand loyalty is not necessarily about price: Fewer than half (47 percent) say sales/discounts influence their brand purchases, compared with 80 percent who say they are influenced by product/service quality.
Below, additional key findings from the report.
The value of a brand enthusiast
- Brand enthusiasts are nearly four times more likely to spend significant amounts of money on favored brands in the future, and three times more likely to buy frequently from those brands.
- Enthusiasts spend 13 percent more per favored brand purchase on average than other customers.
- Brand enthusiasts are also significantly more likely to purchase based on recommendations from their brands of choice.
Email was found to be the most effective method for driving action for all adults surveyed, with 51 percent of brand enthusiasts and 45 percent on non-enthusiasts reporting that their last purchase of a brand product/service was prompted by email communication.
Consistency and relevance
Enthusiasts tend to respond to marketing messages when the prompts are consistent and relevant, the analysis found. Respondents say they are more likely to buy from a brand when marketing messages…
- Match expectations of the brand (8.7 average score out of 10)
- Match past interactions with the brand (8.6)
- Are relevant to the their needs (8.6)
- Are received at the right time (8.4)
- Are useful in aiding the decision to buy (8.4)
- 44 percent of brand enthusiasts have already liked a favored brand on Facebook; 20 percent have followed a favored brand on Twitter.
- 39 percent of brand enthusiasts have recommended a favored product/service via social media.
- Enthusiasts are two times more likely to report complaining about a brand on social media.
About the research: The report was based on data from a survey of 2,200 online U.S. adults conducted in March and April 2014.
A version of this article originally appeared on Marketing Profs.
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