UK: Research reveals the four types of loyal customers
New research from the UK's Direct Marketing Association (DMA) reveals four different types of loyal customers: Active Loyals, Habitual Loyals, Situational Loyals, and Active Disloyals. Which category you fall into probably depends on which store you're about to walk into - and the price of the item you're preparing to buy.
The DM's report, "Customer Engagement 2016," details the characteristics and demographics of four key segments of loyalty customers (All descriptive text courtesy of the DMA):
- Active Loyals (40% of UK adult population): Stay loyal to brands for both routine and special purchases. Tend to be both older and younger.
- Habitual Loyals (23%): Stay loyal for routine buys, but shop around for special purchases. More men than women in this category.
- Situational Loyals (9%): Flexible for routine buys buy loyal for special purchases. Proportion rises to 15% of 16-24 year-olds.
- Active Disloyals (27%): Have no brand loyalty. More women than men, and more likely to be in the 45-64 age-group.
As other studies have noted, self-reported "disloyalty" increases as the value of the item purchased increases. For example:
- 41% of respondents shop around for electronics products
- 46% shop around for furniture
- 24% shop around for clothing
- 21% shop around for beauty products
As for reasons that customers stay loyal to a brand despite the ability to buy the product cheaper elsewhere, the reasons closely mirror Ray Kroc's famous "QSCV" drivers of customer loyalty:
- 52% stay loyal for good service
- 48% for product quality
- 46% for convenience
- 32% For service resolution
- 32% For good offers/deals
And UK consumers most definitely appreciate loyalty marketing tactics:
- 46% want their favorite brands to offer loyalty programmes
- 39% want exclusive access to items or deals
- 36% want time-sensitive discounts
There are many more stats available in the report; downloand it here.
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