n Consumers have opportunities to
discover new beauty brands and
products at every turn, so you have
to create real reasons for them to
stay loyal to your brand.
n With the amount of data brands and
companies are now able to capture
about their consumers, it is imperative
loyalty initiatives and programs are
personalized for consumers.
n Consumers hold four currencies
they can dedicate to a brand:
Spend, Talk, Engage and Prefer.
Referred to as STEP, each action
demonstrates the multiple dimen-
sions of loyalty at a very personal
level. Understanding and utilizing
these currencies are true ways
beauty brands can get ahead.
In a beauty market that grows more competitive by the day, the decline of consumer loyalty is unwelcome news. Ernst & Young reports brand loyalty is plummeting, and only 25% of consumers say brand loyalty affects their buying behavior. Discovering alternative products from friends or bloggers, as well as enticing offers from an ever-growing list of new brands, is easier than ever.
Social sharing and growing use of mobile technologies make loyalty a moving target.
But while consumer behavior might be changing, consumer needs have not. They
still crave brands and retailers that make them feel smart and deliver consistency.
This represents a huge opportunity for brands. By capitalizing on innovation in
data-driven consumer centricity, beauty marketers can gain unprecedented loyalty
from consumers—by demonstrating unprecedented loyalty to consumers.
The Myth of the Loyalty Ladder
Marketers often talk about taking consumers up the loyalty ladder from brand
awareness to preference, loyalty and advocacy. If loyalty is just a series of steps
building to stronger love, why have so few companies managed to hold on to their
customers? Loyalty doesn’t work this way.
Many marketers often think they’ve done enough to capture consumers’
affections. That’s why customer retention rates in the 60–65% range are considered
good in some categories. Let’s be clear: It’s unacceptable to lose four of every 10
customers because they don’t follow your rigid, pre-determined path to loyalty.
Loyalty isn’t—and shouldn’t be—easy to cultivate in consumers. Putting in the work and gaining knowledge from user-supplied data helps brands build a stronger, more authentic, more meaningful and more useful connection.
BY NAOMI KASOLOWSKY