Report: Consumers Don’t See Most Brands as Meaningful
Havas’ Meaningful Brands 2019 report shows that “77 percent of brands could disappear and no one would care.” That number is the highest since the research began in 2008.
Consumers, particularly younger consumers, are most likely to become loyal customers to brands that have meaning to them, whether it’s a local sort of connection or an appreciation for a business’s social advocacy or philanthropy. If this report’s findings are accurate, most of today’s brands will need to focus on communicating their value in an authentic way.
Issues around Private Label Credit Cards
An industry professional shares his consumer habits and their implications for loyalty: “Remember Plenti? That was a dog. I joined the multi-retailer reward program only because American Express was the force behind it. The free appetizer at Chili ’s was great, but after that we parted when they never seemed to simplify the transaction. A separate card was required, and with the required password, it was just not worth it.” He claims that big data has not yet figured him out as a consumer.
Accor Once More
While the company rebranded as AccorHotels in 2015, it has announced that it is returning to its previous name, Accor. This announcement accompanies the launch of Accor’s ALL program, which unites the brand’s offerings, including international experiences. Essentially, Accor is focusing on “who they are,” ensuring that it is communicating a single message to its customers. That approach should help cultivate loyalty.
Behind Loyalty Recent Loyalty Revamps
Why are so many brands adopting new loyalty programs or revising existing ones? The reasons vary. “While some of the changes are likely just the result of natural investment in that part of the business, retailers also face pressure from higher shopper expectations. In particular, the beauty sector has built a strong loyalty reputation, with category leaders like Sephora and Ulta both laying claim to popular, frequently updated programs.”
Macy’s Plans for the Future
Macy’s is restructuring with “the goal of saving $100 million annually to spend on growth initiatives.” The brand has lost many customers to the convenience of digital retail, and many of the brands behind popular products sold at Macy’s are focusing on marketing outside of department stores. Macy’s has stated that it will think “mobile first” from here on out, but it may be too little, too late. If the brand does not embrace customer-centricity at all levels, these changes will likely be ineffective.