By Adam Fraser
Facebook publishes research based on its own data blended with external market research on its own Insights Blog “Facebook IQ”.
It produced some very interesting recent research via its survey on brand loyalty across several key marketing verticals.
In an era of almost infinite choice across so many product sectors, and with the clichéd image of Millennials as a group who will product hop on a whim, many may assume brand loyalty is almost dead and hence an out of reach goal for marketers to aspire to.
Not so says the survey, backed by interviews with 14,700 people across 5 different sectors (car insurance, airlines, hotels, groceries and restaurants). In summary brand loyalty is “thriving with rich opportunities for brands”.
5 of the most interesting insights from the study were:
- 77% of consumers are returning to the same brand, but the drivers vary between “brand loyalists” (37%) and “repeat purchasers” (40%). Significantly, brand loyalists have more emotional and experiential drivers such as trust and service while repeat purchasers focus more on utility factors such as price and convenience
- Millennials can potentially be as loyal to brands as baby boomers but face certain potential barriers unique to their generation – issues such as availability of healthy options and ease of communication with a brand are far more important to Millennials and hence can impinge on the desire to remain loyal more than for other demographics
- Whilst higher household income (US$150k plus) are 32% more likely to be loyal, customer experience is the key driver of loyalty across all income brackets
- Interestingly new parents are more likely to be loyal – 42% of New Parents describe themselves as loyal compared to 36% of non-parents.
- Regular users of Facebook and Instagram are 1.25 times more likely to be loyal to brands than non regular users of these platforms
The key theme of the research is consistent with something I have consistently blogged about and regularly discussed on my podcast – marketers need to focus more on customer service and customer experience to drive existing customer retention beyond the traditional obsession with new customer acquisition. Millennials specifically over index to brands they can easily communicate with (think social customer service); all demographics value customer experience as a loyalty driver (customer service is very often a key aspect of this).
It re-affirms my core belief that social listening and social customer service should be foundation pillars in any enterprise social media strategy.