A recent report titled ‘Trend Loyalty’ from SAP Emarsys indicates a decline in traditional loyalty among consumers in Australia. The report highlights a shift towards a more immediate, emotion-driven allegiance shaped by trending products on social media, particularly among Gen Z shoppers.
According to the Customer Loyalty Index (CLI), 36% of Gen Z respondents purchase items based on current trends, nearly double the rate of the overall population. This demographic also shows loyalty to brands that maintain trends, with 26% indicating reduced loyalty if a trending item underperforms. The findings suggest that trust in products is influenced significantly by their virality, with 14% more likely to trust a product that has gone viral, and 51% declaring loyalty to specific products rather than brands.
Sara Richter, CMO at SAP Emarsys, emphasized the dual nature of Trend Loyalty, stating it presents both risks and opportunities for brands. She noted that marketers must act quickly and understand their customers personally to leverage these fleeting moments into lasting connections.
PUMA is cited as an example of a brand effectively utilizing AI and automation to personalize customer experiences based on rich data insights. Furthermore, SAP Emarsys has introduced the B2B Buyer Loyalty Index (BLI), offering insights into how business buyers form loyalty and make purchasing decisions.
- Why it matters: Brands must adapt to changing consumer behavior to maintain relevance and drive loyalty; understanding trends can lead to increased engagement and potential sales.
- The latest: SAP Emarsys has launched the B2B Buyer Loyalty Index (BLI), expanding insights into loyalty trends among business consumers.
Source: https://www.bandt.com.au/gen-zs-brand-loyalty-replaced-by-viral-moments-finds-sap-emarsys-report/
Source: https://www.bandt.com.au/gen-zs-brand-loyalty-replaced-by-viral-moments-finds-sap-emarsys-report/