Brand loyalty only works for customers through individual experiences
Brand loyalty and brand attachment are increasingly dependent on the individual customer experience: Nearly two-thirds of German consumers (65 percent; Europe: 61 percent) are primarily loyal to brands that tailor the customer experience specifically to their needs and preferences.
More than one in two of them (58 percent, Europe: 50 percent) would therefore buy the products they are looking for from an unknown brand without hesitation if it offers a better customer experience. This is the result of the latest Goldsmiths study "Reinventing Loyalty: Understanding Customer Behavior in the Experience Era", for which more than 5,000 consumers were surveyed across Europe (including 1,000 in Germany) on behalf of Adobe. According to the survey, new technologies such as chatbots and augmented reality are particularly popular with German consumers: 52% prefer brands that continuously introduce innovations to improve the customer experience (Europe: 50%). Consumers like to return to these brands again and again.
Using artificial intelligence to increase customer loyalty through experiences
For brands, new technologies such as artificial intelligence (AI) offer ideal conditions for meeting the increased expectations of consumers in the digital age: Artificially intelligent systems help them to process very complex data at lightning speed so that they can tailor their entire marketing to the customer's needs, the situation and the channel. According to the latest Adobe study, German users are already on board: more than half of them (51%, Europe: 53%) would already be willing to disclose personal data about themselves if they receive helpful, practical and personalized experiences in return. At the same time, 59 percent want more transparency about the use of their data (Europe: 76 percent).
"Engaging with customers in a better and more diverse way and providing them with a personalized customer experience are now the main motivations for using artificial intelligence. It enables brands to transform data and content based on customer relationships into genuine, personalized experiences. In the future, algorithms will continue to learn and adapt so that we can not only surprise and delight our customers, but also help solve their problems quickly and easily," says David Burnand, Enterprise Marketing Director at Adobe EMEA.
If the customer is unsure where the company got the information about them, personalization is quickly perceived as unpleasant and the actual added value is in danger of being lost. For 63% of German consumers, brand loyalty depends not least on how consistently the brand experience is played out across all channels (Europe: 61%). Just under half of them (45%) make their purchases online (Europe: 46%), and almost one in four (24%, Europe: 27%) regularly use a mobile device to do so. Adaptive, mobile-optimized customer experiences are therefore no longer an optional extra, but have long been a must for sustainable brand loyalty.
The new ABCD of loyalty
As part of the study, Adobe and Goldsmiths identified four new dimensions that brands should consider when designing and implementing experiences in order to delight their customers, fulfill their needs and sustainably promote customer loyalty:
Give people an Adaptive experience - Customer loyalty is closely linked to an engaging experience that is tailored to the specific needs and requirements of the consumer. Brands need to know and respect their customers and use their data in a way that brings them clear added value in the customer journey.
Be wherever the consumer loves to be - An always-on mentality is crucial for customer loyalty. The traditional customer journey has been completely transformed by digital technology - with significantly more convenience for customers. Brands therefore need to be always present, always available and on every device or platform for a consistent customer experience.
Help consumers filter Choices - Brands need to stand out if they want to attract attention and strengthen customer loyalty. Artificial intelligence can help them bring together relevant data and engaging content to create a unique customer experience that is delivered to the right person at exactly the right time.
Differentiate through experiences that surprise and delight consumers - New technologies that help today's consumers solve their problems faster or fulfill their needs more quickly set brands apart from the competition and support customer loyalty.
