Stalk your customers and risk exodus, brands warned

Brand owners might think they are being smart by keeping in touch with consumers, but there is a fine line between having a healthy relationship and stalking, with those companies that overdo it likely to trigger a mass exodus of customers.

That is one of the key findings of a new study by Intuit Mailchimp which focuses on the evolving relationship between brand and customer, consumer spending motivations, and how businesses can best connect with them in today’s climate.

Sourced from a survey of 10,000 consumers across nine countries, including 1,500 in the UK, “Brand Trust In the Age of Information Overload” reveal that brand trust and connection (46%) is the number one factor that drives sales with British shoppers.

The report also identifies other primary characteristics consumers look for when making purchasing decisions: free delivery (44%), regular discount codes and rewards (43%), excellent customer service (40%), free returns (38%) and quick shipping (35%).

The results differed greatly across the generations surveyed. For those aged over 65 the key purchase drivers were trust (61%), free delivery (54%) and excellent customer service (51%), whereas those aged 18 to 24 were led by discounts (32%) and humour (29%).

And while the report underlines a handful of insight-informed tactics to roll out, it also pinpoints marketing mishaps to avoid. Some of the top reasons that lead UK consumers to unsubscribe from brand emails include repetitive or unimaginative emails (45%), unsubstantiated claims about brand purpose (38%), biased/partisan commentary on social or political issues (35%) and if they can’t view an email properly on their device (34%).

The findings also reveal the quantity threshold: British consumers will unsubscribe if a brand sends more than seven emails per week.

Despite trust coming out top, nearly a third (32%) of shoppers have started trusting in brands less amid the rise of misinformation. To combat this, the study sets out a six-point plan for brands to instill this from the outset, and maintain it.

– Focus on quality service: A proven track record of excellent customer service ranks highly as a driver for both purchases and engagement. This ranked higher in importance for older generations, with over half (51%) of those aged over 65 versus just one in five aged 18 to 24 saying it was a primary purchasing factor.

– Ask for data and provide value: While four in five shoppers need to be assured by brands that they’re using their data responsibly, nearly half (46%) are happy to share it with brands they trust. However, more than three-fifths (62%) want to see more value and greater personalisation in exchange for sharing data, and only just over a third (36%) feel they’re currently seeing the value of doing so. So, while personalisation has some way to go, it’s encouraging to hear that more than one in three mentions it’s currently stopping them from “missing out on products” and that they are being shared information “they’re genuinely interested in”.

– Galvanise brand advocates: The report revealed word-of-mouth recommendations by friends and family are the most trusted endorsements (48%), followed by customer testimonials and reviews (32%) – both much higher than content creators and influencers (10%). These findings underline the real value of brand advocates – true unbiased, unpaid fans. Not only will the brand benefit from the fan’s repeat purchases but also from their authentic following’s purchases (and perhaps advocacy) too. A marketing-savvy way to harness this push power and incentivise and reward can be through recommend-a-friend schemes. It’s worth underlining that a key way to restore brand trust when lost is through customer testimonials, as well (50%).

– Communicate transparently: For British consumers, the primary way to rebuild brand trust when lost is through transparency of company actions (51%). Notably, in the face of inflation, nearly the same percentage of shoppers who stayed loyal to a brand that lowered or locked its prices (46%) stayed loyal to a brand that raised its prices transparently (43%).

– Live up to brand promise: The report reveals the two (joint) most important factors that significantly impact purchasing decisions for shoppers are “a company with values to match my own” (31%) and “a company that clearly has a strong brand identity: visual, written and substance”, so spending time on brand-building content to underline company ethics can quite literally pay off. Findings show that on the whole, customers care more about sustainability than affordability. Over a quarter (26%) said they were more inclined to buy from a brand that has a positive impact on the environment, compared to 15% who said they were more inclined to buy from a brand that is affordable but less sustainable.

– Leverage smart discount strategies: Discount codes are an unequivocal sales driver. Nearly half of UK consumers (45%) will look for a discount code before making any online purchase and over a quarter (28%) will delay purchases over £100 until they can get money off. But while discount codes support customer purchases and engagement, they eat away at a company’s profit. The Mailchimp report reveals the discount sweet spot for British shoppers: 13%. This is the average lowest site-wide discount that would entice shoppers to click through to the website to explore potential purchases.

Intuit Mailchimp head of EMEA Jim Rudall said: “Never has it been more challenging for British businesses to build trust with and engage their customers. Brands are working in demanding times: bountiful competition and noise, alongside push factors like inflation and customer expectations regarding ethics and values.

“It’s hard for marketers to decipher how they can make meaningful connections with their customers and drive revenues.

“As customers evolve, marketers today have a chance to evolve with them, forging long-lasting relationships that reward those on both sides of the shop window. Brands who prioritise knowing their customers and delivering on their brand promise and values will seek the trust – and rewards – they’re after.”