PORTLAND, Ore.--(BUSINESS WIRE)--SheerID, the global leader in identity verification for commerce, today announced the publication of its 2024 Consumer Loyalty Report. Retailers are leaning into discounts in response to pushback from consumers who feel pinched by inflation. But while discounts are good for generating short-term sales, can they also effectively generate long-term loyalty? To find out, SheerID surveyed more than 3,200 consumers in the United States and the United Kingdom, asking about their feelings on the economy, discounts and what it takes for brands to build enduring loyalty.
Connecting with consumer communities nurtures enduring loyalty
The survey, which was fielded by Centiment on behalf of SheerID between March 1 and March 14, 2024, showed that enduring loyalty occurs when customers feel emotionally connected to a brand, and the best way to spark and nurture that emotional connection is by giving gated, exclusive offers to consumer communities, like students, teachers or the military.
The survey also revealed that 80% of members of these communities identify more strongly with their community than they do with their age group, political affiliation or where they live. And this strong identity translates directly into brand loyalty. In fact, 73% of respondents feel more emotionally connected to brands that give them an exclusive offer, and 71% are more loyal to a brand that offers them an exclusive deal.
Economic worries continue to impact consumer spending
Rising prices are shaping consumers’ pessimism about the economy, and 71% said they are changing their spending habits as a result. While the economy is driving customers to pivot to whichever brand offers the best deal, the research showed that exclusive offers are an effective way to both acquire new customers and nurture their long-term loyalty.
More than 80% of consumers who belong to a consumer community check to see if a brand offers an exclusive deal to their group. More than half said that an exclusive offer would motivate them to try a new brand, and 45% said they would even switch their loyalty from one brand to another if the brand had a community-based exclusive offer for them.
Feeling deeply recognized by a brand drives loyalty
Research shows that the top three emotions that drive loyalty are feeling valued, appreciated and respected. SheerID’s survey found that when a brand gives an exclusive offer to a group the consumer identifies with — such as 20% off to students members — it evokes these deep emotions of loyalty because members of that group feel recognized and rewarded by the brand.
This feeling was mutual across communities. Seventy five percent of military and first responders said they felt honored by receiving an exclusive offer from a brand and 75% of healthcare workers, 69% of teachers and 67% of students said they felt grateful to brands that give them that recognition.
Emotional connection fosters enduring loyalty in a tough economy
Customers who feel an emotional connection with a brand have a 306% higher lifetime value. Our survey showed that exclusive offers are an effective way to drive that emotional connection: more than two-thirds of teachers (76%), students (73%) healthcare workers (72%), military (71%) and first responders (67%) said they feel more emotionally connected to brands that give them an exclusive offer. And that loyalty endures despite the inflationary pull to consider other brands based on price alone.
Exclusive offers drive loyalty program membership
More than 70% of members of all five consumer communities in our survey said they would be likely to join a brand’s loyalty program in order to redeem an exclusive offer. That includes a whopping 90% of first responders and 88% of teachers, as well as military (86%), healthcare workers (83%) and students (73%).
As a result of these findings, it is best practice for brands to integrate verification into the loyalty program enrollment process. This enables brands to immediately use the first party data collected to re-engage and create highly personalized loyalty campaigns that further deepen the emotional connection and sustain loyalty over time.
Loyal consumers like to spread the love
In an economy that fuels price-shopping, exclusive offers are a great way to attract new customers. And, because exclusive offers forge an emotional connection by making customers feel seen and appreciated, it helps build and sustain loyalty that endures regardless of economic pressures.
“The findings of the 2024 Consumer Loyalty Report are clear: gated, exclusive offers to consumer communities cultivate an emotional connection with brands that builds long-term loyalty,” said Stephanie Copeland Weber, CEO of SheerID. “The SheerID Open Verification Platform makes it easy for a brand to build a gated offer program for hundreds of consumer communities in minutes.”
To download and read the full 2024 Consumer Loyalty Report, visit this link. And to get started with SheerID, you can get started for free.
About SheerID
SheerID is the global leader in identity verification for commerce. With SheerID, brands identify and acquire customers from highly valued consumer communities — such as the military, students, teachers, and first responders — with personalized offers through loyalty programs, digital wallets, and more, that are gated by instant verification from the largest set of authoritative data worldwide. SheerID verifies more than 2.5 billion people via 200,000 authoritative data sources to increase sales while mitigating fraud, provides global insights from hundreds of the world’s leading brands, and never shares or sells customer data. As a result, the world’s biggest brands — including Amazon, Home Depot, Spotify, and T-Mobile — rely on SheerID as their identity verification partner. Founded in 2011, SheerID is backed by Fortson VC, Brighton Park Capital, Centana Growth Partners, Voyager Capital, and CVC Growth Partners.
SheerID is ISO Certified and is a member of the MACH Alliance, the group of independent technology companies dedicated to advocating for open, best-of-breed technology ecosystems. In 2023, SheerID ranked among the highest-scoring businesses on Inc. Magazine’s Annual List of Best Workplaces. For more information, please visit SheerID or follow us on X (formerly Twitter), LinkedIn, Facebook, and TikTok.
