Latest news with #brandloyalty
Entrepreneur
4 days ago
- Business
- Entrepreneur
Why Emotional Branding Is Out and Functional Loyalty Is In.
Emotional branding is no longer enough. Today's consumers reward functionality, not just familiarity. Opinions expressed by Entrepreneur contributors are their own. 32% of customers say they would walk away from a brand they love after just one bad experience, no matter how long they've been loyal Brand loyalty isn't dead, but it is evolving. At Digital Silk, we've worked with hundreds of growing brands across industries, and the pattern is clear: emotionally driven loyalty is losing ground to functionality-first experiences. Consumers don't just want to feel something — they want things to work. And that's a shift both in sentiment and in economics. A decade ago, brands poured resources into storytelling and emotional resonance. But today's consumers, especially Gen Z and Millennials, are loyal to experiences, not just feelings. As McKinsey notes, more than 75% of consumers have changed buying behavior since the pandemic began, with many switching brands due to availability, value or digital service quality. To stay competitive, brands need to rethink loyalty not as a marketing campaign but as a product feature. Functionality now defines loyalty Amazon is continuously ranked as the most trusted brand in the retail and eCommerce category in the U.S., and that's not because of its logo or brand promise. It's because Amazon delivers, literally and metaphorically. Free returns, one-click ordering and fast shipping are tangible functions that keep customers coming back. And it's not just Amazon. In a Deloitte study, 84% of consumers ranked "program simplicity and ease of use" as one of the most important loyalty attributes. This shifts the narrative. While emotional connection once held sway, today the true battleground for loyalty is built on functional design—loyalty programs and platforms must work seamlessly, not just look or feel good. Convenience is the new brand personality. Related: How to Build a Brand That Stands the Test of Time Loyalty programs are being re-engineered for utility Traditional points-for-purchase loyalty programs are fading. Today's leaders are embedding rewards directly into product functionality. Starbucks is a prime example, not because of stars and freebies alone, but because of how the program powers frictionless ordering, payment and personalization through its mobile app. As of September 2024, the company reported $1.7 billion in deferred revenue tied to stored value cards and loyalty activity, with over $1.6 billion expected to be redeemed within a year, according to its annual report. That is proof that users are consistently engaging with the platform, placing mobile orders, customizing drinks and redeeming offers as part of their daily routine. This level of functionality doesn't just improve convenience. It reinforces habit loops that make the app, not just the coffee, the sticky part of the brand experience. Uber takes a similar approach. Through its free Uber Rewards program and paid Uber One membership, the brand rewards active users with friction-reducing perks like priority pickups, price-protected routes, free deliveries and cashback on rides. These benefits are functional. Uber One members now account for 40% of Uber Eats U.S. bookings, spend four times more per month, and show 15% higher retention than non-members. Loyalty, in this case, is a consequence of daily usefulness. This shift away from symbolic rewards toward integrated utility reinforces the point: the most effective loyalty programs today earn attention; they don't ask for it. Related: Why Gamification is the Secret Weapon for Brand Engagement What this means for your brand Stop thinking about loyalty as a brand halo. Think of it as friction reduction. Ask: How easy is it to reorder or renew? Do your top customers get better service, faster responses or deeper insight? Is your loyalty program integrated into the daily flow of your product? If not, you're leaving equity on the table. Loyalty shouldn't live in a separate system, but in your UX. Almost 90% of customers say the experience a company provides is as important as its products or services. That experience starts with functionality: seamless logins, fast checkout, accurate personalization and responsive support. AI personalization is reinforcing functional loyalty AI is accelerating this shift. Brands are now using real-time behavioral data to offer smarter, faster and more relevant experiences. Netflix's content suggestions, Spotify's Discover Weekly and Amazon's product recommendations all operate on this principle. These platforms don't ask for loyalty. Instead, they earn it through predictive personalization and time-saving interfaces. AI serves customers, but it also trains them to return. Related: How I Used AI to Transform My Business and Create Multiple Revenue Streams The emotional layer still matters — but it's built on function To be clear, emotional affinity still matters, but only after functional trust is built. Apple users may love the brand, but they wouldn't stick around if the devices stopped syncing. Netflix wouldn't survive on content alone without its intuitive interface and hyper-personalized recommendations. Functional loyalty is the gateway to emotional connection, and not the other way around. Related: Fix This First To Make Every Ad Dollar Count Make loyalty invisible The most successful loyalty strategies are the ones customers don't notice. They just work. They're embedded in your product, reinforced by your service and rewarded by your infrastructure. Brands that still chase emotional loyalty without delivering on functional expectations risk becoming irrelevant. The future belongs to businesses that treat loyalty not as a feeling to inspire, but as a function to engineer.
National Post
6 days ago
- Business
- National Post
The Value Ultimatum: New Research Shows Consumers Demanding More Than Ever from Brand Relationships
Article content Global study of 5,000 consumers reveals transparent value exchange now critical to building lasting brand loyalty Article content ST. PETERSBURG, Fla. — Consumer loyalty, which has become increasingly elusive, is at a crossroads, according to new research from leading loyalty solutions provider, Kobie. Today's shoppers face uncertainty as economic volatility, cultural divisions, and rapidly evolving technologies reshape their relationship with brands. With heightened price sensitivity driving purchasing decisions and trust becoming more crucial than ever, consumers are redefining what loyalty means. The annual Heart of Loyalty Consumer Research Report, surveyed 5,000 consumers across the United States and, for the first time, Canada and the United Kingdom, uncovering critical insights into evolving consumer perceptions and expectations around brand loyalty. Article content Article content The research reveals a noticeable shift in consumer behavior, with key insights showing that today's consumers demand transparent, meaningful value in exchange for their time, personal information, and engagement with their favorite brands. These heightened expectations make it more critical than ever for brands to ensure their loyalty programs can deliver exactly what their customers expect. What consumers want from loyalty programs: Article content Immediate value recognition: Transparency in savings creates powerful connections with brands. 67% of consumers said that when they can see exactly how much they've saved through loyalty programs, they immediately recognize the program's value, transforming abstract benefits into concrete, meaningful returns. Flexibility and control: Consumers want autonomy over their loyalty benefits, with 61% wanting the ability to gift their points to others and more than half seeking options to redeem rewards with brands outside the original loyalty program itself. This desire for flexibility reflects consumers' need to maximize value on their own terms. Reward quality over quantity: Consumers are clear about wanting substantial value from their loyalty investments. 85% of respondents expressed a desire for better discounts, indicating that small percentage discounts, low-value freebies, or generic promotional offers are no longer sufficient to maintain engagement and that brands must deliver meaningful financial benefits. Surprise and delight: The element of unexpected value resonates strongly. 82% expressed interest in surprise earning opportunities, suggesting that brands that can deliver unexpected value will create more memorable and engaging loyalty experiences. Fair value exchange for providing personal data: Consumers are willing to provide valuable first-party data to brands via their loyalty programs, but with a few stipulations. First, the reason for the ask must be shared: 86% of consumers say it needs to be extremely obvious why they're being asked to share information before they'll provide it. Also, incentives help: 82% of consumers said they would share information with a brand without any incentive, but this jumps to 94% when brands offer reasonable value in return. Article content 'Consumers are sophisticated evaluators of value, especially in an uncertain economic climate where every purchase decision carries more weight,' said J.R. Slubowski, Associate VP, Strategic Consulting at Kobie and lead of the Heart of Loyalty Consumer Research Report. 'Rising costs and economic pressures have made consumers more discerning than ever, which actually makes loyalty programs more critical. When brands can demonstrate genuine value and build trust through transparency, they provide the stability and savings that consumers desperately need. The most successful brands will be those that recognize this moment as an opportunity—consumers are actively seeking partners who can help them navigate financial uncertainty, and loyalty programs that deliver real, measurable value become essential tools for both retention and acquisition in challenging times.' Article content About The Heart of Loyalty Consumer Research Report Article content The study was conducted in early 2025 and included responses from 5,000 consumers across the United States, Canada, and the United Kingdom. Kobie's consumer research is known in the industry for its academic rigor, designed to uncover evolving trends in consumer perceptions and expectations around brand loyalty in an increasingly competitive and price-sensitive marketplace. The study includes actionability for loyalty practitioners to optimize strategies yield higher program ROI. This research was conducted independently by Kobie's Research Center of Excellence. Article content Kobie delivers market-leading, end-to-end loyalty solutions for the world's most successful brands. With strategy-led technology, Kobie is consistently named an industry leader by Forrester with a mission of growing value through loyalty. Article content We turn complex customer data into actionable insights, leveraging human-guided AI and strategic services to enable loyalty outcomes across industries. Kobie Alchemy® Loyalty Cloud delivers and measures loyalty experiences that set brands apart. To learn more about partnering with Kobie and how we have been driving loyalty for more than three decades, visit Article content Article content Article content Media Contact: Article content Article content Article content
Fast Company
7 days ago
- Entertainment
- Fast Company
There's a formula to loyalty—super-fandoms have mastered it
Building super-fandom isn't an art, it's a science with a proven formula that brands can learn and replicate. The most successful fandoms, like Taylor Swift's Swifties, follow predictable patterns centered around building strong emotional architecture around a shared idea to generate a sense of belonging. Mastering this formula is integral for brands seeking lasting loyalty as it's the only reliable path to transforming casual consumers into passionate advocates who drive real business impact. The fandom formula Fandoms operate on four fundamental principles: 1. Emotional resonance comes first. Swifties don't just like Taylor Swift's music because it sounds good; they see their own stories reflected in her lyrics. Every album becomes a shared emotional journey, not just a collection of songs. Because they see themselves and their values reflected in this artist, they are invested in her success, ensuring each album release goes No. 1 on the charts. 2. Shared rituals and language create insider status. It's an unspoken code among Marvel fans that you stick around for the post-credit scenes of every single movie. Fandoms develop their own vocabularies, traditions, and ways of belonging that make outsiders want in. 3. A sense of belonging transforms individual consumers into collective identities. There are whole online and in-person communities dedicated to being a member of Beyoncé's Beyhive. They travel to concerts together, buy music and merchandise together, and every other brand avenue released by Queen Bey. 4. Active participation and co-creation turns audiences into collaborators. Fandoms thrive because fans don't just consume. They remix, theorize, create fan art, write fanfiction, and build upon the original work, offering another opportunity for direct fan-to-artist connection. The future is fandom-driven brands Most brands approach loyalty like a math problem. Spend $100, get 10 points. Visit five times, get a free coffee. Instead of a transactional approach to building brand loyalty, consider deploying the following: Build emotional anchors in the brand experience: Every brand interaction is an opportunity to create lasting emotional connections beyond the initial point of sale. Red Bull exemplifies this approach by translating the energy and thrill customers experience from their drink into a lifestyle ecosystem. Through immersive experiences like virtual reality alpine climbing and extreme sports activations, Red Bull offers energy and the feeling of limitless possibility for their community of thrill-seekers. Foster community, not an audience: The distinction between audiences and communities determines whether customers become advocates. Audiences consume, but communities create, connect, and discover together. Celebrities have become especially adept at leveraging fandom to create dedicated brand communities. Take Hailey Bieber's recent success with cult beauty brand Rhode. From exclusive pop-up events and viral TikTok videos, Rhode created virtual and physical spaces where beauty enthusiasts could experiment and bond over their collective obsession. In turn, Rhode built a movement around beauty that turned skincare routines into shared experiences and enough cultural cache to drive a $1 billion valuation in just three years, leading to its acquisition by e.l.f. Beauty. Make fans a part of the experience: Fandoms cultivate active participants and collaborators. Netflix's upcoming 'Netflix Houses' represent this principle at scale, transforming viewers into main characters of their favorite Netflix series. One second they're a contestant of Squid Game and the next they're wandering through Stranger Things' Hawkins to solve the latest mystery. Netflix repurposed dying mall space to create these immersive experiences, curating a new way for younger generations to experience malls and TV shows. A win for Netflix, the teens, and the malls. The most successful companies of the next decade won't just have customers, they'll have believers, which they'll build by making people feel something profound. Behind every transaction is a human being seeking connection, meaning, and belonging. In a world where fandoms power industries, the only thing standing between brands and that devotion is the courage to design experiences that honor this fundamental truth.
Independent Singapore
04-07-2025
- Business
- Independent Singapore
Singapore consumers expect good service from brands they choose but say they fail to deliver: Ipsos
Photo: Depositphotos/ pichsakul (for illustration purposes only) SINGAPORE: Most consumers in Singapore expect brands to offer great service—but walk away disappointed. According to Ipsos' CX Global Insights 2025 report, 78% of customers in the city-state stated that they chose a brand expecting a good experience, yet 86% reported that those same brands failed to exceed their expectations. Singapore Business Review reported that the report also found that 59% of local consumers had a bad or forgettable experience with a brand in the last six months. The issue, according to the report, isn't a lack of interest or engagement from consumers but brands falling short on the promises they make. 'It's no longer enough to satisfy—it's about connecting emotionally and delivering consistently,' the report noted. In addition, only 31% of local consumers said they would recommend a brand they used, though 57% said they tried those brands through a recommendation. Notably, 44% of local consumers also do not trust social media influencers. To earn customer loyalty, Ipsos advised brands to offer authentic, personalised engagement, rather than relying on visibility alone. See also Study says 9,200 people are enslaved in Singapore Still, 52% of respondents said they are willing to pay more for a better experience. That number jumps to 70% when there's an emotional connection involved. Ipsos added that Singapore customers value friendly service, seamless digital interactions, reliability, and personalised connection most. While AI takes on a bigger role in customer service, only 44% believe it will improve their experience. /TISG Read also: Xiaomi to consider selling cars outside China from 2027 after YU7 SUV racks up record sales Featured image by Depositphotos (for illustration purposes only)
Fast Company
02-07-2025
- Business
- Fast Company
17 best practices that help brands grow alongside their customers
BY Customer expectations are constantly changing, and the most successful brands are proactive enough to anticipate them. Sales growth in the modern age is all about forging stronger relationships, building trust, and creating value at every stage of the customer journey. From real-time feedback loops to thought leadership and adaptive storytelling, business leaders are finding new ways to grow in sync with the people they serve. To that end, 17 members of the Fast Company Executive Board share the most effective practices they've used to evolve alongside their customers and strengthen long-term loyalty. 1. SHIFT FROM SELLING TO SERVING. Brands grow when they shift from selling to serving. By educating the industry, sharing expertise, and leading with insight, not just products, they earn trust and stay top of mind. Being a reliable source of clarity in a noisy market builds lasting credibility and customer loyalty. – Lexi Sydow, 2. DEEPLY UNDERSTAND YOUR CUSTOMER. Have a deep understanding of who your customer is and communicate in ways that surprise and delight them. Encourage them to help you share the good news about your brand through word of mouth and social media. – Jo Ann Herold, Herold Growth Consulting 3. INVEST IN HIGHLY ACTIONABLE DATA. Investing in highly actionable data enables brands to truly understand their customers and engage with them on a deeper level. With accurate, privacy-first identity insights, marketers can deliver more relevant experiences, build trust, and drive sustainable growth through better engagement strategies. You can't scale what you don't understand. – Bryan Whitaker, Statara Solutions 4. TURN CEOS INTO STORYTELLERS. To truly grow with their customers, brands need CEOs who don't just lead behind the scenes but become their most authentic, magnetic storytellers—because when a CEO's personal brand shines, customer loyalty follows like a spotlight on stage. A strong thought partner helps a CEO figure out their ideal and authentic personal leadership brand. – Beth Jannery, Titan Strategic Communications 5. BUILD A MEASUREMENT MINDSET. Growth isn't a guessing game. Brands that build a measurement mindset into their marketing double down on what works and grow with their customers. Don't stop at basic conversion metrics that only tell part of the story. Widen the lens to spot patterns that bring the bigger picture into focus, helping you understand what drives customer decisions, meet their needs, and earn their loyalty. – Jessica Shapiro, LiveRamp 6. DESIGN ADAPTIVE EXPERIENCES. A best practice for brand growth is building adaptive systems across experience, strategy, and storytelling. Today's customers expect progression, not just personalization. Every interaction should be an opportunity to listen, learn, and evolve. Growth happens when brands evolve with their audience, not just market to them. – Gabriel Bridger, Rightpoint 7. ALWAYS BE HELPFUL. Be helpful, whether it has anything to do directly with what you sell or not. If your customers think you're helpful, there is truly no downside to that perception—ever. – Andrea Lechner-Becker, GNW Consulting 8. LISTEN, LEARN, AND ADAPT. Engage in active listening through surveys, feedback loops, and social engagement to understand evolving customer needs. Then adapt offerings and messaging accordingly. This builds trust, loyalty, and long-term growth. – Scott Keever, Keever SEO 9. BREAK DOWN ORGANIZATIONAL SILOS. Only one best practice? Ruthless audience centricity—and breaking silos. I rarely see marketing, product, and sales all rowing in sync. But when those three act as one team, grounded in customer needs, the center of that Venn diagram isn't chaos—it's growth. – Sarah Buckler, Tangible 10. ENGAGE CUSTOMERS PERSONALLY. Actively engage with your customers, whether that's through social media or personalized engagement. Respond to online comments, write thank you notes for orders, and take your time when answering emails. Meaningful interactions show that you care about your customers and help build a personal connection with clients. – Mark Valentino, Citizens 11. LEVERAGE THE POWER OF PR. Get as much visibility as you possibly can. The best way to do this is through the press. Speak on podcasts, contribute to a publication in your field, and get the attention of a journalist by offering your expertise. Do whatever you can to stay in the public eye. No publicity is bad publicity. – Victoria Chynoweth, Victoria Chynoweth 12. MAINTAIN HUMAN CONNECTIONS. When you're growing and scaling, don't forget where personal touch and connection actually matter in your customer's journey. You can automate a lot, but you can't automate the trust and loyalty that come from real human interaction. Keep that part real. – Travis Schreiber, 13. CREATE A CUSTOMER ADVOCACY PROGRAM. There must be a consistent feedback loop between brands and their customers, which can take many forms. One way is through a customer advocacy program, where both parties benefit from a deeper level of access and investment in each other. This might include soliciting customers' feedback more regularly, meetings with business leaders, and participating in pilot and beta programs for new products. – Irina Soriano, Seismic 14. RESPOND PROMPTLY TO BUILD TRUST. The best practice brands can follow to grow with their customers is to respond to their customers quickly, within an hour or two. That includes phone calls and emails. It doesn't have to be a long answer to their concern or question, but an automatic email, text, or phone message that tells them you received their communication and are addressing their need goes a long way toward building trust. – Baruch Labunski, Rank Secure 15. STUDY THE CUSTOMERS WHO LEAVE. Listen carefully to the people who walk away. We studied our defectors, asking, 'What made you downgrade? What did we miss?' The feedback wasn't always easy to hear, but it was gold. Their departures revealed blind spots our loyal users couldn't see. Sustainable growth comes not from doubling down on what works, but from understanding why others say it doesn't. – Shayne Fitz-Coy, Sabot Family Companies 16. HOST CUSTOMER CO-CREATION LABS. My go-to best practice is hosting quarterly 'Customer Co-Creation Labs'—live virtual sessions with our members to brainstorm new templates and PR tactics. We feed those insights directly into our roadmaps, creating a feedback loop that ensures our branding evolves in lockstep with our customers' needs. – Kristin Marquet, Marquet Media, LLC
