TMCnet News
Retailers could see a 5% boost to annual revenues by driving emotional engagement with consumersPARIS, Dec. 5, 2017 /PRNewswire/ -- Capgemini's Digital Transformation Institute has today released a new report titled "Loyalty Deciphered— How Emotions Drive Genuine Engagement," which seeks to understand the main drivers behind brand loyalty. The report, which surveyed more than 9,000 consumers and 500 executives, found that emotions have the strongest impact in driving consumer loyalty. For retailers who are able to foster loyalty through higher emotional engagement with consumers, there is a great potential business benefit of possibly increasing annual revenues by five percent. The new report also identified a stark disconnect between executives and consumers on how well organizations are making emotional connections; where 80 percent of executives feel their brand understands the needs and desires of their consumers, only 15 percent of consumers agree. Emotions are the main driver of loyalty Today's new report reveals that emotions have the strongest correlation to loyalty over rational factors and brand values. Specifically, honesty and trust were noted as having the greatest influence on loyalty. However, there does need to be a balancing act with rational benefits. Consumers with high emotional engagement still believe rational factors and brand values are important when they decide on which companies they will bestow their loyalty. Creating an emotional connection with consumers drives multiple benefits for retailers Emotionally engaged consumers are loyal to the brands they love and willingly act as ambassadors to family and friends. They want brands to be engaged and reciprocate their loyalty in two-way interactions (86 percent), but they also enjoy giving back to brand (81 percent). Consumers also want differentiated shopping experiences both online (75 percent) and in store (73 percent). Kees Jacobs, Consumer Goods & Retail Lead, Insights & Data Global Practice at Capgemini, said, "Consumers are immune to transaction based loyalty programs of the past, so a retailer's engagement with consumers needs to shift from being transactional to more emotional and meaningful. Decoding human emotions will ensure that brands have a better understanding of their consumers leading to building deep-seeded engagement and long-term loyalty with them. With a potential revenue boost of five percent up for grabs, and weak emotional connections ready to be exploited by the competition, no retailer can afford to ignore this reality." City dwellers and millennials lead the rise of the emotionally engaged consumers How to create an emotional connection
Research Methodology Capgemini also held 17 in-depth discussions with a range of senior executives in customer experience, marketing, and strategy including Chief Marketing Officers, Chief Customer Experience Officers, Marketing/ Branding Directors, Heads of Strategy, and leads of loyalty programs. In addition, it interviewed leading experts in customer experience and loyalty as well as academics. This helped Capgemini to understand how organizations define loyalty and how they emotionally connect with consumers. Two virtual focus groups were also held with consumers. One included consumers living in the United Kingdom and within the 22-36 age group and the second included consumers living in the United States within the 37-52 age group. A copy of the report can be downloaded here. About Capgemini About the Digital Transformation Institute: The Digital Transformation Institute is Capgemini's in-house think-tank on all things digital. The Institute publishes research on the impact of digital technologies on large traditional businesses. The team draws on the worldwide network of Capgemini experts and works closely with academic and technology partners. The Institute has dedicated research centers in India, the United Kingdom and the United States. 1 Colloquy Customer Loyalty Census, 2017
View original content with multimedia:http://www.prnewswire.com/news-releases/retailers-could-see-a-5-boost-to-annual-revenues-by-driving-emotional-engagement-with-consumers-300565971.html SOURCE Capgemini |