Nowadays, my inbox is flooded with discounts. While these offers are fun and ‘personal’ (I used that term lightly), they no longer spark the same joy or excitement they once did. This got me thinking: Have we become so accustomed to discounts that paying full price now seems out of the ordinary?
Given the sheer volume of products being consumed and the fierce competition for attention, it’s no surprise price cuts are overused at every point of contact with a shopper. But this is where brands are going wrong – customers want to feel genuinely valued. Brands need to dig deeper and offer emotional loyalty rather than purely a transactional relationship through discounts.
So how can brands create a connection that brings customers back? Not just by using an irresistible price, but because they feel truly seen and valued?
For me, this is where emotional loyalty can play a big part in ensuring customers stick around.
Value is everything
At the heart of emotional loyalty is value. Traditionally, customer values were determined by fair pricing or the quality of service. However, with advancements in technology and greater access to information, modern consumers – especially Gen Z and Millennials – have redefined what ‘value’ means. Their expectations are much higher, extending beyond the norms to include transparency in the sustainability of a product, personalised experiences, and a deeper emotional connection with brands.
With three-quarters of shoppers reporting they’ve cut ties with a brand due to conflicting values, it’s more crucial than ever for brands to place value at the heart of their strategy.
Brands must understand that loyalty is earned not simply through financial incentives like free birthday gifts or welcome discounts, but by aligning with customers’ beliefs and lifestyles.
A compelling loyalty programme can foster emotional connections by embracing shared values, and authentic storytelling creating platforms where customers can engage with each other.
Long-standing beauty brand, Dove excels at this approach. By championing the ‘real beauty’ agenda, Dove has sparked honest conversations that engages a whole community spanning across generations, identities and backgrounds.
Prioritising personalisation
For brands to foster a deeper emotional connection with customers and form genuine loyalty they must prioritise personalisation and truth.
To bolster personalisation, data and insights have proven incredibly effective for brands when developing their loyalty programmes. When used correctly, it can create a unique and more tailored experience for its customers.
Personalised recommendations, targeted promotions and customised communications can enhance customer satisfaction and emotional loyalty.
However, brands must handle data with care. According to Adobe’s Digital Trends report 65% of respondents admitted to being worried about how much data brands hold about them, and 60% agreed they get frustrated with brands that know a lot about them but don’t take their preferences into account.
The wrong email or personalised offer can do more harm than good. Amazon once mistakenly sent out baby gift registry emails to customers who didn’t need them, causing unintended distress. This incident highlights the importance of accuracy and sensitivity in data-driven strategies. Brands must ensure that their data is up-to-date and relevant to avoid such mishaps and maintain customer trust.
Feeling connected to consumers
It’s hard to put a pin on it but emotional loyalty surpasses the usual discounts or occasional returning customers, emotional loyalty is when a customer is truly connected to the brand and its ethos.
To create this with customers, brands need to maintain regular communication, keeping themselves at the forefront of consumers’ minds. This could be newsletters, an engaging social media feed or personalised updates. Essentially, the customer needs to feel like they are going on a journey with the brand.
Goop is a good example of this by making its brand synonymous with a holistic lifestyle that extends far beyond a single purchase. This is done by complementing the buying experience with its own podcast (of which I’m a big fan) and events.
Brands that actively involve customers are more likely to drive emotional loyalty and, ultimately advocacy for the brand.
Why emotional loyalty wins
Brands that grasp the significance of value, personalisation and connections within their broader proposition can move past the discount wars and cultivate genuine lasting relationships with their customers. These relationships are built on emotional connections and authentic engagement.
While a discount code might spark initial loyalty it’s not effective for the long-haul customer journey. True loyalty is earned through every interaction, every piece of content and every experience a customer has with a brand.
Jemma Marchant is deputy managing director, krow Group
