For beauty business news, beauty store owners turn to Beauty Store Business. Beauty business trends, beauty business profiles and more!
Issue link: http://beautystorebusiness.epubxp.com/i/429491
76 January 2015 | beautystorebusiness.com Beauty Culture Age & Income Don't Influence Brand Loyalty A new survey reveals that understanding a customer's context and needs during the purchase process cultivates brand loyalty. The 2014 Brand Loyalty Survey from enterprise marketing solutions provider StrongView (strongview.com) shows a correlation between the context and perceived value within a marketing message, and increases in purchasing and engagement from consumers receiving those messages. The most loyal customers, which StrongView refers to as "Brand Enthu- siasts," are engaged with their brand of choice as a frequent and consistent buyer, and are highly likely to recommend the brand to friends. The StrongView survey, which was conducted in conjunction with Edison Research, found nearly twice the number of Brand Enthusiasts reporting that loyalty played a part in their last purchase, compared to non-Enthusiasts surveyed. In addition, Brand Enthusiasts confirmed that they were more likely to buy after receiving a timely message that was relevant, helpful and consistent with their expectations. For example, 77% of Brand Enthusiasts reported purchasing an item recommended by their brand of choice. Further findings revealed the following: Age and high income have little effect on a person's likelihood to be a loyal customer. • Loyalty was essentially even across all age brackets, ranging from 17% to 19% of adult online shoppers between the ages of 18 and 54. • Only 5% of consumers with $150,000 in annual salary were loyal to a brand, compared to 29% of shoppers with an annual salary of $25,000 to $50,000. • Sixty-seven percent of loyal customers make $75,000 or less annually. Higher levels of context and value are tied to purchases. Customers reported they were more likely on a scale of 1 to 10 to buy when they received a marketing message that: • Matched their expectations of the brand, 8.7 • Matched past interactions with the brand, 8.6 • Was relevant to their needs, 8.6 • Was received at the right time, 8.4 • Was helpful or useful in aiding their decision to buy, 8.4 Brand Enthusiasts are more valuable than new customers for the following reasons: • They are nearly four times more likely to spend significantly more with a brand in the future. • They spend on average 13% more per purchase than other customers. • They are more likely to purchase based on recommendations from their brand of choice. • They are three times more likely to frequently purchase from the brand. In addition, 51% of Brand Enthusiasts and 45% of non-Enthusiasts reported that their last purchase for a brand was prompted by email communication. This is more than online and offline advertising combined. ■ Do you have culturally relevant information that our readers ought to know? Send it to senior editor Manyesha Batist at firstname.lastname@example.org. Consumers Prefer Email Marketing Consumers prefer brands to reach out to them via email more than any other mode of communication, reveals the 2014 Consumer Views of Email Marketing report from BlueHornet Networks (bluehornet.com), an email marketing provider from Digital River (digitalriver.com). Among the survey's key findings: • Consumers check their email accounts early and often, and 80% check their email before they start work. • More than 80% percent say that discounts are the No. 1 reason they sign up to receive emails; specifi- cally, a reduced dollar amount is the most attractive type of offer, with a percentage off being the second most valued offer (for consumers 18- to 45-years-old), while free shipping hits the mark for consumers 46- to 75-year-olds. • Nearly 45% of consumers will wait until they receive a discount to make a purchase. • Of consumers who made at least one purchase in the last year, approximately 38% engaged from a mobile email and have used a mobile coupon. • Just over 87% of consumers say they will either delete or unsubscribe from an email list if mobile email messages don't display properly. • Almost 70% of consumers want to communicate with brands via email rather than direct mail or text messages. • Consumers overwhelmingly agree that one to two commercial text messages per week is the ideal amount of text-message communication from a brand. Left image: Gettyimages.com; right image: courtesy of StrongView