Reaching high-value audiences is a challenge in and of itself. Turning those audiences into repeat customers is another obstacle entirely. Over the past decade, retail marketers have experimented with innovative strategies to both juice brand loyalty and feed the data flywheel. Few could have predicted that those same techniques would become paramount to maintaining loyal customers during a global pandemic.  Â
 No one can deny that shopping habits have changed, perhaps forever. However, there is an open question about whether customer loyalty has adapted along with it. While retail brands are struggling to meet their audiences where they are, there are signs that customers seek deeper, more direct relationships with brands. According to a new Treasure Data surveyOpens a new window of 1,000 U.S. shoppers, consumers are receptive to marketing and financing trends that rapidly accelerated in the past year. From a growing interest in buy now pay, later (BNPL) options to the immense influence of loyalty programs, customers are looking to foster deeper relationships with brands, assuming they can offer convenience and seamless customer experiences in return. Below are five takeaways from the survey data that capture customer behavior in 2022 and shed light on how retail brands can connect with high-value audiences going forward.Â
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1.The Future Is Consumer Financing Â
During times of economic volatility, it can be difficult for retail brands to address consumers’ financial needs. Consumer financing services have historically eased that burden in retail, though never at an industry-wide scale. Market conditions and the seamless integration of BNPL solutions over the past two years have seemingly altered perceptions of both retail brands and their customers. The study highlighted the extraordinary popularity of BNPL offerings at the moment, with more than two-thirds of all shoppers (71%) having considered some form of financing to pay for products or services in the past year. BNPL is a win for everyone, as it not only simplifies the purchasing experience for customers but also increases their buying power so that they can keep coming back.
2.Valuing the Value ExchangeÂ
Customer loyalty is a two-way street in the sense that both brands and consumers must actively participate in the value exchange. For retailers, all that used to mean was ensuring the shelves were stocked. With the rise of ecommerce and contactless shopping, retailers have had to increase their table stakes to get customers’ attention. The survey found an overwhelming number of consumers are engaging in the value exchange with brands and retailers, with 83% of respondents willing to give up their personal information if they can derive value in the form of discounts, member benefits or product recommendations. By offering these incentives in exchange for valuable customer intelligence, retailers can set up a mutually-beneficial relationship that extends beyond a single purchase.
3.Standardizing Loyalty Programs
Against the backdrop of a pandemic and unprecedented supply chain disruption, customer loyalties have been tested repeatedly. While some shoppers are abandoning their preferred brands when inventory problems pop up (21% of respondents indicated they would buy another brand if theirs is out), there is nothing to suggest loyalty rewards programs are failing retailers and brands. An astounding 82% of respondents indicated loyalty rewards motivate them to buy from certain retailers or brands. These findings demonstrate that a majority of consumers desire to enter long-term relationships with brands, and it is this audience that retailers and brands can tap into with rewards and other conveniences. Â
4.The Convenience of Contactless Shopping and Direct-to-ConsumerÂ
It’s hard to conceive a world without in-store shopping. At the same time, it’s also not difficult to see the shopping experience becoming more contactless. As the pandemic persists, consumers plan on using contactless commerce at a greater rate in 2022, with 60% of shoppers anticipating more curbside pickups than the previous year. Further, more and more consumers are becoming comfortable circumventing the retailers and buying from brands directly, as two-thirds (68%) of consumers anticipate buying directly from brands more in 2022 than the previous year. Although retailers and third-party markets will always be a priority for CPG companies and other retail brands, they can no longer ignore the direct-to-consumer (DTC) channel.Â
5.Personalized Marketing’s MaturationÂ
After a customer consents to marketing communications, it’s on the brand or retailer to guide that relationship in a manner that is constant but not overbearing. It’s a challenging line that often gets crossed, especially before the pandemic. Once deterred by marketing overload, many consumers are now in favor of proactive alerts and notifications, with just over two-thirds (68%) finding them beneficial no matter the time or occasion. Perhaps relatedly, it appears marketers have improved in tailoring their communications to shoppers, as 63% of consumers believe brand offers and recommendations accurately reflect their shopping habits.Â
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In a lot of ways, the pandemic totally changed consumer behavior. Without question, where and how people shop is different from two years ago. However, the consumer-brand relationship that began taking shape 25 years ago, in the ecommerce era’s formative years, does not seem totally affected. Customers, the high-value ones anyways, still want discounts and personal experiences. The retailers and brands implementing data-driven strategies to connect with high-level audiences are the ones most likely to reap the benefits as the industry navigates the pandemic and its aftermath.
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