Majority of UAE consumers are now in less committed relationships with their favorite retailers than ever before, with only five percent feeling devoted towards their preferred retail brands, according to the global loyalty marketing agency, ICLP’s recent study. Devotion, which is a factor of how passionate, committed and intimate consumers feel with a retailer, is key to growing high-value, enduring relationships between people and brands.
ICLP surveyed consumers in the UAE to rate their experiences with friends and romantic partners, as well as brand relationships, on seven core relationship criteria. By partnering with a global authority on relationship dynamics, Professor Ron Rogge from the University of Rochester, the company was able to create a model that is based on Sternberg’s Triangular Theory of Love.
The studies found that at their most loyal, consumers fall into the devoted group and are enthusiastic, passionate and committed to a retailer. In addition, devoted customers are the most willing group of consumers to share personal information, opinions and desires with their favorite brands, and are least likely to stray to competitors.
The Power Of Devotion
Devotion is the most favorable state for retail brands, as the study found that 100 percent of customers that fall into this group would recommend a brand they are devoted to. This is a major indicator of how valuable a devoted customer base is for word-of-mouth, compared with other types of customer relationships. Out of the other five relationship groups, levels of advocacy vary significantly.
Only 19 percent of customers in a ‘liking’ relationship would recommend a retailer to others, 42 percent in a ‘casual’ relationship, and 64 percent in a ‘companionate’ relationship, revealing how powerful a devoted relationship is to a retailer’s bottom-line. Nonetheless, ‘romantic’ relationships which, according to Sternberg are characterised by high levels of passion and intimacy are also strongly inclined to share their love for certain retailers with 83% likely to recommend brands.
What Retailers Can Do To Create Devoted Customers?
With only 5 percent of consumers currently falling into this valuable ‘Devoted’ consumer group, retailers need to find ways to drive this pinnacle relationship across their customer base. The research findings also provided valuable insight into how retailers can tackle the challenge of driving a deeper relationship with customers. The study found that consumer interest in loyalty programmes remains high in terms of encouraging spend, as 79 percent of shoppers stated they would be encouraged to shop more with a brand if it had a loyalty programme.
Foster brand advocacy: 100 percent of devoted customers would recommend a retailer to others, demonstrating the importance of creating and maintaining devoted customer relationships
Create stronger rewards programmes: though consumers in empty, liking and casual relationships have lower expectations around rewards, 79 percent of Emirati consumers would buy more if they were better rewarded. This emphasises the power of using personalized rewards that ‘surprise and delight’ customers to move them towards a more devoted state
Take time to understand customers’ needs: 73 percent would buy more if retailers used their data to understand their customers’ individual needs and requirements better. By doing this, retailers can encourage the intimacy required for a devoted relationship
Build respect and trust among consumers: 71 percent would buy more if retailers treated them with more respect, and 62 percent would buy more if they trusted brands more. Trust is key to securing the commitment that exists where there is devotion
Communication is also crucial: 68 percent would buy more if brands communicated with them better. This highlights the importance of using better communications and engagement strategies to create the reciprocal sense of passion present in a devoted relationship
Professor Rogge said, “ICLP’s recent study represents ground-breaking work in understanding the key components of brand loyalty. Our analyses suggested that the same seven basic types of relationships emerged for both brand and close relationships. In fact, a majority of respondents approached their relationships with favourite brands in a very similar manner to how they approached their close relationships. Therefore, developing a strong and devoted relationship with a brand might not be so different from developing a strong and caring bond with another person, suggesting that people might buy with their hearts.”
“Brands today are finding it difficult to bond with their customers; the level of choice means consumers are increasingly distracted. Our research shows what consumers need from a brand in order to build an emotional connection, is very similar to what they require from relationships with friends and loved ones. That is, good communication, reliability, consistency, reward and recognition,” commented Sanjit Gill, General Manager, ICLP.
