MARKET BRIEF

2012 brand loyalty SurveyMarket brief

ExEcutiVE SuMMaRY In this new age of the empowered, connected consumer where word of mouth yields unparalleled influence, the importance of brand loyalty is paramount in driving revenue and profitability. The Brand Loyalty Survey was conducted between March 7 and March 19, 2012 to discover which brands consumers are most loyal to, why, and how they show their loyalty. The findings underscore the critical role of reliable products, superior customer service and rewards programs on consumer perceptions, buying habits, and advocacy.

2012 BRAND LOYALTY SURVEY

apple, coca-cola, amaZon.com, google top the loyalty listWe asked consumers what brands they couldnt live without and some familiar companies topped the list: respondents overwhelmingly singled out Apple (20% of all responses collected), followed by Coca-Cola products, and a tie between Google and Amazon.com. Other brands mentioned by consumers included Starbucks, Target, Microsoft, and a slew of retailers from apparel, electronics and health/beauty organizations.

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Survey responses also revealed which industries have the strongest brands: consumers reported being most loyal to food and beverage companies (57%) and technology and gadgets providers (51%), and least loyal to health/fitness (44%) and wireless providers (43%).

What companies are you most loyal to their brands?100

Most Loyal Least Loyal

80

60

57%

51% 44% 43%

40

20 0Food & beverage companies Technology & gadgets providers Health/tness Wireless providers

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2012 BRAND LOYALTY SURVEY

Quality, service drive brand loyaltyWhat makes you loyal to a brand? (select all that apply)88% 72% 50%

loyal consumers more tolerantWill you tolerate more from certain companies or brands, e.g. paying more for name brands or driving for your favorite coffee shop vs a closer one?No

Quality

Customer service

Price

13%Yes

Convienience

45% 15% 12% 9%0 20 40 60 80 100

Their commitment to social responsibility

87%

Status symbol

Other

What is the best way a company can build loyalty with you?

if you answered yes, which of the following would make you tolerate more from a brand or company? (Check all that apply)

Providing exceptional 24/7 customer service

34%Quality

77%

Rewarding me for purchases, feedback, referrals

20%Customer service

Sending me exclusive and/or relevant o ers and specials

63% 37%

13%Price

Providing personalized products, services

12% 11% 10%0 10 20 30 40 50Convienience

Other

29% 17% 9% 8%0 20 40 60 80 100

Knowing me when I visit or call in

Their commitment to social responsibility

Other

According to survey respondents, the two biggest drivers of loyalty are quality (88%) and customer service (72%), above price (50%) and convenience (45%). When consumers were asked about the best ways companies can gain their loyalty, the top choice for respondents was providing exceptional 24/7 service (34%), followed by reward programs, providing personalized products/ services and sending exclusive, relevant offers. Bottom line consumers not only want companies to delight them from a customer service standpoint, but they also want companies to better understand their needs and preferences on an individual basis.

Status symbol

Eighty-seven percent (87%) of consumers surveyed said that they would tolerate more from certain companies or brands because of their loyalty, with 77% of these respondents pointing to quality and 63% pointing to customer service as factors driving their commitment.

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2012 BRAND LOYALTY SURVEY

lasting first impressions key to gaining loyalty and trustWhen is the most critical time for a company to gain your loyalty?When I make my rst purchase or begin service (rst impressions) Exceed my expectations in resolving an issue (service and experience) Before I buy or decide to do business with the company (reputation, word of mouth) When I consider switching to a competitor

consumers not feeling the love With current reWards programsdo you believe the brands/companies you are loyal to are doing enough to reward you as a loyal customer?

48% 40%

Yes

No11 %

37% 63%

1%0 10 20 30 40 50

Across the entire customer lifecycle from acquisition, on-boarding, service/support and retention, companies have opportunities to build loyalty with customers. According to 48% of consumers surveyed, the most critical time to gain their loyalty is when they make their first purchase or begin service, while 40% indicated that companies gain their loyalty when exceeding expectations in resolving an issue. These findings point to the weight consumers place on those critical interactions early and during their lifecycle, and often involving customer care and support areas. Perhaps most interesting was the fact that only 0.8% of respondents believe that the most critical time to gain their loyalty is when they consider switching to a competitor. Organizations should closely examine customer experiences across each stage of the lifecycle to identify the optimum times and channels to delight customers and deepen relationships.

Sixty-three percent (63%) of consumers surveyed do not believe companies are doing enough to reward their loyalty. Although many industries thrive on loyalty programs like airlines, hotels and restaurants, some companies may be missing an opportunity to engage their loyal customers through exclusive programs and treatment strategies. Even more compelling is the finding that over 50% of respondents would consider increasing the amount of business they do with a company for loyalty rewards and 46% indicated that they had increased purchases due to rewards programs. how do loyalty programs (or lack there of) reward loyal customers influence your decision to continue doing business with those brands? (Check all that apply)

I would consider increasing the amount of business I do with the company for loyalty rewards I have previously increased the amount of business I do with a company for loyalty rewards

54% 46% 22% 12% 12%0 10 20 30 40 50

It has no inuence

I would consider ceasing business with the company for lack of loyalty rewards I have previously ceased doing business with a company for lack of loyalty rewards

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2012 BRAND LOYALTY SURVEY

loyalty drives Word of mouth, advocacyhow do you show your loyalty? (check all that apply)I spread the word and tell others

78% 69% 54%

I buy more

I dont consider other competing products/companies

I join the brands social media community

15% 11% 3%0 20 40 60 80 100

I visually support the brand (apparel, promotional items, bumper stickers)

Other

When asked how they show their loyalty to brands, consumers said they spread the word and tell others (78%), buy more from the company (69%) and wont consider other competing products (54%). Loyal consumers are vocal, more profitable and more tolerant of issues if they are connected to a brand companies should continue new ways to discover and reward customers for referrals, especially with regards to the influence of social media (think offering discounts for likes on Facebook or rewarding customers for positive or informative tweets about the brand).

about clickfoxThe leader in a new breed of experience analytics, ClickFox maps the complex maze of customer experience journeys formed by interactions at every touch point with a company. Unlike business intelligence tools, ClickFox links disjointed, cross-channel data to fully understand and analyze customer behavior in a holistic view. Using ClickFox, businesses can optimize performance to improve loyalty, raise revenue, cut costs, enhance reputation, drive business strategy, and predict future needs -- all with breakthrough speed and scalability. ClickFoxs patented technology can be installed in weeks to deliver a clear picture of unstructured data and drive better decisions. Working with ClickFox, Fortune 500 leaders in telecommunication, financial services, media, utilities and healthcare organizations collectively have added more than $1 billion to their bottom lines.

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