There has been much discussion in recent years about how some consumers do business with brands that share many of their personal values. Millennials have been cited as the most active generation in this area.
So, should brands be worried about if their values don’t match up with some consumers?
According to our 2022 Customer Loyalty Data Study: What Are the True Drivers of Loyalty in the Minds of Consumers?, 44% of consumers say they continue to shop at brands that don’t share their personal values.
To almost half of consumers, values might not matter. This isn’t a clear “yes” or “no” answer because different consumers have different motivations.
Alignment of Brand and Personal Values Aren’t Always as Important to Consumers As You Might Think
While alignment of brand and personal values has been examined in the loyalty industry in the past decade, just how important is it?
Well, the data study shows values don’t always play as major a role as many brands are led to believe when it comes to loyalty. When 44% of respondents say they continue to shop with brands that don’t share their values, it tells you that many consumers place more value on other aspects of your brand.
According to the data study when consumers were asked why they’re loyal to their favorite brands, higher quality product (27%) was the top response. Another stat that reveals consumers shop with brands that don’t share their values is because 56% say they do it to get a better deal.
To determine their brand loyalty, the main things consumers focus on are price, product quality, and convenience.
As a result, brands have more influence over customer loyalty than they think by focusing on price, product quality, and convenience.
Values Still Matter to Many Consumers
Although many consumers won’t shop at brands that don’t share their personal values, there is a significant amount that places a high priority on a company’s values.
Consider nearly 70% of consumers say their favorite brands are a part of who they are.
Also, one in four consumers say that a strong sense of community describes why they’re loyal to their favorite brands.
And 76% of consumers value the recommendations of family and friends the most.
While shared values might tip customer loyalty toward a specific brand in some cases, these stats clearly show that many consumers prioritize values when it comes to displaying brand loyalty.
For Brands, Their Messaging to Consumers Is In Their Hands
Some consumers care about things like price, quality, and convenience the most and some care about community and personal values the most.
That’s why it’s important for brands to think holistically about their customer loyalty and engagement strategies and try to offer something for all their different customer groups.
To spark customer loyalty and retention, all those factors come into play. Which of those factors drives your customers the most depends on your brand.
While the biggest loyalty driver for 18–24-year-olds is feeling a strong sense of community with others, consumers 40 and older cite quality as the dominant trait that sparks loyalty.
For some brands it comes down to price for their customers, while for other brands it might be values and social causes.
Consider that 33% of consumers say a brand taking a contrary social or political stance to their own could cause them to lose loyalty with their favorite brand.
But the focus for brands around driving loyalty remains completely in their hands.
Brands can tell their stories any way they want. Since many consumers are neutral when it comes to a brand’s values, companies shouldn’t feel pressured to take any stance on any issue.
If brands execute on product quality, price, and convenience, they will be rewarded with loyal customers and a passionate community. If your brand messaging centers on these three things most important to your customers, you’ll keep them happy and eager to engage.
Focus on Creating a Loyal Brand Community
Your brand controls your own messaging to consumers. Listen to them, focus on these three things, and communicate about them often.
It’s about having a holistic loyalty and customer engagement solution, so your brand has something for all your different customers.
Don’t concern yourself too much with any political or social positioning on issues because those things don’t matter to many of your customers.
Customer loyalty, according to our study, is driven by product quality, price, and convenience. Doing everything you can to prioritize these three key factors will go a long way toward building greater customer loyalty.
To download the 2022 Data Study, click here.