In January 2023, Cheetah Digital by Marigold released their 2023 Consumer Trends Index. As Marigold’s fourth consecutive annual study, this year’s report surveyed 11,000 global consumers from over 10 countries to find out trends and attitudes in personalization, privacy, messaging, advertising, brand loyalty, and the rising cost of living. The report interviews consumers about their behavior toward brands, breaking down trends across demographics, geography, and digital channels and platforms. The purpose of the Consumer Trends Index is to provide marketers with the data and analysis they need to plan and forecast for the year ahead, offering strategies rooted in relationship marketing — the science of taking a human approach to the way brands acquire, engage and retain customers in order to drive revenue on a recurring basis.
Talking consumer trends with VP Tim Glomb
“Let’s Talk Loyalty” is an industry podcast for marketing professionals, featuring loyalty specialists from around the world. In the latest episode, podcast host Paula Thomas interviews Tim Glomb, Vice President of Global Content at Marigold, to get the most critical and influential insights from this year’s Consumer Trends Index. In this informative and exciting interview, Glomb shares his thoughts and work from the Consumer Trends Index on how brand loyalty is continuing to grow throughout the world, why consumers love the brands that they do, as well as key reasons why customers abandon loyalty programs.
Glomb insists that in its multifaceted approach, the Consumer Trends Index gives marketers the data to understand “where consumers want brands to be to win [their] loyalty.” Sharing the most prevalent reasons why all marketers should be engaging consumers in loyalty programs, and offering suggestions for some of the less common strategies that consumers are beginning to expect from marketers in 2023, Glomb contends that brands need to be in consumers’ pockets, recognizing them as individuals, an approach which a lot of brands struggle with.
What consumers are saying about loyalty in 2023
From the thousands surveyed this year, Glomb shares that consumers are definitely interested and thinking about loyalty programs. In fact, compared to previous years, growth in loyalty is trending upward with a rise in more people willing to pay more for their favorite brands — an impressive 59% of surveyed consumers are brand loyal, and the brands most attractive to consumers are those that are showing global maturity and awareness. The data tells us that the most important elements in a brand and its loyalty program, those which keep consumers making purchases, are early and exclusive access to new products and services and the presence of a community that consumers can feel connected with. While discounts and low prices for great products and services are necessary to attract consumers, Glomb states that those are not the advantage. Consumers want rewards and community, with 29% wanting exclusive access to new products and services, and 24% wanting suggestions based on their preferences.
Now more than ever, it’s imperative for loyalty offerings to be intune with consumers’ wants and needs. This year’s data relays that 43% of consumers said they are more likely to participate in loyalty programs; however, over 60% of global consumers are extremely concerned about economic conditions. This gives brands an opportunity to listen to consumers, create opportunities for them, and provide them with ways to manage their budgets. But, consumers are not just choosing to stick with loyalty programs for the sake of it. They want loyalty programs that prove their worth, value, and convenience. Many will switch brands over a poor, or lack of, loyalty program, and over half of consumers say they will leave a loyalty program if the rewards aren’t worth it.
Making waves with this year’s Consumer Trends Index
Glomb notes that people outside of the industry may think loyalty is dead, or that it’s now only points and prizes, but he contends that this year’s report illustrates that loyalty is in demand, consumers drive demand, and brands need to catch up — invest in the technology, invest in the people, and invest in the process to meet consumers where they are to win their loyalty.
As an independent, nimble, and innovative company invested in continuing research, Marigold is a global pioneer in Relationship Marketing, providing tailored, industry-specific martech solutions to over 40,000 businesses around the world. Cheetah Digital, one of its most versatile and sophisticated platforms, delivers the technology marketers need to grow relationships, grow revenue, and ultimately grow their businesses. To learn more about this year’s Consumer Trends Index, listen to this episode of “Let’s Talk Loyalty,” and download the full report now.
