'Dull marketing' puts off even the most loyal customers

Almost half of Gen Zers (46%) and nearly a third (29%) of other generations have admitted they have abandoned a brand they were once fiercely loyal to simply because they grew bored of them and their dull marketing.

So says SAP Emarsys’ annual Customer Loyalty Index (CLI), which reveals that, regardless of whether consumers care deeply about a brand, the key to standing out in the long term lies in better personalisation, more relevant content, and offering unique perspectives tailored to individual interests.

The study shows that younger consumers are particularly drawn to innovative marketing. Specifically, nearly a third (30%) of Gen Z, compared to 23% of all demographics, have tried a new brand because of its creative marketing.

Additionally, nearly a third of Gen Z (31%) are enticed by brands that use “cool” content or imagery, compared with 21% of other age groups. Meanwhile, 28% of Gen Z, compared to 17% of other demographics, seek out brands that deliver “memorable experiences”.

The report cites the likes of Liquid Death bottled water as being “radically entertaining” to get cut through and Asda’s “Brat Summer”, insisting these brands have set a benchmark by turning everyday products or services into something innovative and memorable.

Whether “Brat” or ”Demure”, the study looks into what it take for brands to extend the initial loyalty ignited by fast-moving social trends into long-term true loyalty.

For enterprises looking to stay ahead in an increasingly competitive landscape, SAP Emarsys leverages AI to optimise the entire marketing process – from customer segmentation to campaign execution and performance analysis.

It maintains that AI identifies the most profitable under-served audience segments, representing new opportunities across different lifecycle stages, enabling highly targeted campaigns delivered at the ideal time and through the most effective channels.

SAP Emarsys argues that this approach not only uncovers new customer groups but also personalises content and interactions in realtime, making one-to-one engagement seamless across multiple platforms. With generative AI, on average, marketers save over two hours on manual tasks in the launch of a typical marketing campaign, allowing them to focus more on driving innovation and revenue growth.

Recognising that an omnichannel marketing strategy is key to unlocking true loyalty, the report says brands like Ferrera Candy Company and Pizza Hut are making every interaction count by creating personalised, two-way conversations. This results in the consumer’s life stage becoming clearer, and with each future interaction, the brand can better predict the customer’s next needs.

Customers now recognise the value exchange; when they share information like an email address, or birthdate, they expect something meaningful in return, such as loyalty points or VIP perks like early access to new products. This provides a superior customer experience that keeps them coming back.

And marketers are increasingly turning to AI to foster long-term loyalty and reach new audiences. According to recent SAP Emarsys research, two-thirds (66%) of marketers agree that AI will be crucial for boosting customer engagement in 2024, and half (50%) have already experienced a rise in engagement after implementing AI-powered personalisation.

SAP Emarsys CMO Sara Richter explained: “It’s clear that consumers today, not just Gen Z, expect more than ‘business-as-usual’ – they want meaningful and memorable experiences. The key to delivering that is personalisation for every customer.

“AI is the only practical solution for providing genuine one-to-one interactions at scale, across every channel, and at the right moment. Brands that embrace AI-powered personalisation are far better equipped to keep customers engaged, especially when attention spans are short, and demands are high.

“By combining traditional marketing strategies with the advanced capabilities of predictive and generative AI, marketers can create exceptional experiences.”