Singaporeans are slowly falling "out of love" with their favourite brands due to lack of appreciation by brands and retailers towards their loyalty.
According to global loyalty marketing agency ICLP's study, three in four local consumers will purchase more products from a retailer if they are better rewarded for their loyalty.
The study, which surveyed 750 consumers in Singapore, revealed that only 3 percent of them consider themselves devoted to a particular brand, and would willingly stick to the brand for years. Others are still uncertain about their preferred brand because there are so many products available in the market. The shift in consumer choice is also due to brand failures or store closures, such as John Little, which recently shut its doors after being one of the oldest departmental stores in Singapore, ICLP's press release stated.
"What we are seeing from our research is that many Singaporean consumers still relate to brands and retailers at a transactional level, so when times are uncertain, they easily resort to the myriad of choices that are at their disposal, often or literally at their fingertips now," said Bruno Tay, Country Manager, ICLP.
The survey also asked Singaporeans to rate their retail experience on seven core relationships — recognition, rewards, reciprocity, reliability, respect, trust, communication — which replicate the Sternberg's Triangular Theory of Love. It was then evaluated in terms of desirability, liking, causality, devotion, companionate 'nature' towards the brand.
Ninety two percent of devoted consumers said that they would recommend their favourite brands to a friend, while only 12 percent in a 'liking' relationship would do the same.
Furthermore, 61 percent of Singaporean consumers agreed that retailers need to communicate with them better, in ways that express reciprocity and shared passion. This closely mirrors the bond an individual has with friends and loved ones.
"Thinking about our own personal relationships, we know that people fall in and out of love and friendships-lured by greener pastures. Now we know that the same thinking can be applied to brand relationships that are dynamic and ever changing. Retailers looking to build and maintain devoted customers relationships should seek to truly understand the emotional factors that drive consumer loyalty," concluded Tay.
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