Bloomreach, an agentic platform for personalization, has published a new research report conducted with Emarketer indicating today’s consumers are becoming less brand loyal.
The basis of the report, The Power of Trust and Emotions in Building Customer Loyalty, was a survey of more than 150 marketers who said consumers are less brand loyal than they were five years ago. In addition, more than half of the study’s participants agreed marketing with an emotional message would resonate more than transactional or financial incentive-based initiatives.
Bloomreach maintained a lack of trust in a brand is a dealbreaker for most consumers, indicating marketers should prioritize emotional intelligence and brand experience to build loyalty with consumers.
The report emphasized customer relationships extend beyond a sale, as 32% and 22% of respondents said available customer support and free delivery, respectively, provide the best opportunity for customer retention. However, 88% of marketers said lack of trust is a purchasing dealbreaker. The process of building trust with consumers requires a brand to be intentional in its interactions, engaging with customers on their preferred media channels while prioritizing data protection and respecting customer privacy.
In a critical observation at a time when the marketplace has been pressured by inflation and tariff concerns, 68.8% of survey respondents said consumers become more brand loyal when economically secure, even as 49% pointed out many shoppers have switched to lower-cost brands recently.
Whatever other factors are affecting brand loyalty, 75.3% of surveyed marketers use personalized marketing in loyalty programs and find it effective for customer retention. From personalized product recommendations to tailored content, marketers are forging connections by addressing what each customer cares about the most.
“Customer loyalty has never been about competitive pricing or rewards programs,” said Amanda Cole, chief marketing officer for Bloomreach. “Trustworthy data practices and meaningful post-purchase engagement. Companies that invest in understanding and responding to their customers’ emotional needs go beyond creating loyalty programs because it’s the thing to do: They’re creating brand advocates.”
