Dive Brief:
- Brand loyalty is often less influenced by emotional connection than by pragmatic considerations like convenience and situational need, according to new GWI research conducted on behalf of Razorfish.
- While nearly two-thirds (65%) of marketers believe repeat purchases are rooted in love for a brand, less than a quarter of consumer respondents cited brand love as a key motivator for repeat purchases or usage across categories including grocery, airlines, credit cards, streaming platforms and hotels.
- Consumers express preference for “soft” benefits that go beyond points, such as exclusivity and early access, as well as perks acknowledging moments of vulnerability. Artificial intelligence (AI) in advertising drew a mixed response when it comes to inspiring loyalty.
Dive Insight:
Razorfish and GWI’s findings around loyalty arrive at a moment when consumers are chasing value in response to sticker shock during everyday occasions like grocery store trips. The research also comes as holiday marketing ramps up in earnest, with brands this season fighting to win over shoppers who are pulling back on discretionary spending.
Given the rocky macroeconomic context, refining loyalty strategies could be of greater importance to brands. More than 60% of consumers are already switching up or expect to adjust their spending habits in response to tariffs, according to separate McKinsey research published ahead of the holidays.
That said, marketers appear to have a misaligned and even romanticized view around what generates loyalty today, with a majority believing consumer favor is largely rooted in brand love. Meanwhile, just 5% cite convenience as a core driver of repeat business.
“Marketers often idealize loyalty as a form of emotional devotion, but our research shows it’s driven by far more practical factors — convenience, product performance, and situational need,” said Nic Chidiac, chief strategy officer at Razorfish, in a statement around the research.
In terms of what is resonating, Razorfish and GWI pointed to “soft benefits” tied to a feeling of VIP status, with 30% of consumers desiring access to limited-edition product releases and 28% interested in exclusive events or content. Consumers also appreciate when brands step up during inflection points or moments of vulnerability. For example, two-thirds of respondents would prefer to receive early check-in at a hotel after a red-eye flight than a room upgrade on their honeymoon, the type of milestone occasion brands more frequently target promotions around.
Razorfish and GWI in the report asserted that the “traditional levers of loyalty are rapidly eroding” amid media fragmentation, the rise of AI and the ease of switching to alternatives, with emergent channels like social commerce fueling “brand promiscuity.” Wealth inequality also plays a role in shifting loyalty patterns, with better-off consumers more likely to express loyalty than lower-income groups.
As marketers experiment more with AI, including for holiday campaigns, the technology continues to pose a double-edged sword. Thirty-seven percent of consumers say that marketing content “overtly” generated with AI creates a negative impact on loyalty while 24% see a positive impact. Nearly two-thirds (62%) of consumers notice AI-generated marketing compared to a combined 38% who either don’t notice or aren’t sure what they are seeing is AI.
