New Study Shows Four Forces Driving Customer Loyalty

Customer trust will be increasingly valuable currency for brands as Canadians begin to readapt to their normal lives, according to the results of a new study published by Environics Research in partnership with Amazon Advertising.

The Study

Titled Social Values Building Meaningful Brands, the study combines data from an Amazon Advertising survey of over 800 Canadians with the annual Environics Research Social Values survey of more than 5,000 Canadians. The results suggest that, in the months ahead, purchase decisions and customer loyalty will be increasingly driven by shared values, but Canadians will hold brands more accountable for their ability to have a positive social impact and back their efforts with action and evidence.

“Every successful brand knows the importance of staying in tune with customer wants, needs and values – at Amazon, we call that customer obsession. We believe it all starts with the customer, and focusing on things that matter most to customers is our first priority,” said Tamir Bar-Haim, Managing Director and Head of Global Expansion, at Amazon Advertising. “The change we’re seeing with the results of the Meaningful Brands study is that customer standards have never been higher when it comes to a brand’s ability to be accountable.”

The Results

The study defined four core themes that are shaping customer needs.

First, brands that lead with purpose and take action on social issues will resonate strongly with Canadian consumer values. Sixty-six percent (66%) of Canadians are more likely to purchase an item from a brand that is willing to take a stand on a social issue. The environment (52%), human rights (45%) and health and safety (31%) were identified as the causes that matter most to Canadians.

However, customers are prepared to do their homework, and won’t take promises at face value. 87% of Canadian consumers are doing more research before making an important purchase.

“Brands need to demonstrate how they’re ‘walking the talk’ if they want to build customer trust,” said Bar-Haim. “Action speaks louder than words, customers want proof that their purchases helped drive a meaningful impact. For example, at Amazon, our annual Sustainability Report shows how we’re staying the course on our commitment to sustainability, and this information is readily available to customers and other stakeholders.”

The study also found that brands need to leverage social proof when marketing their products to help customers make purchase decisions with confidence. However, the most powerful social proof often doesn’t come from paid influencers.

“We’re seeing that peer reviews - like the customer reviews that Amazon has shared alongside its product listings from the very beginning – are increasingly important to help customers make purchase decisions with confidence, as opposed to paid influencers and similar channels that may not have the same level of authenticity,” said Bar-Haim.

By a similar token, consumers prefer experiences that are curated for them: brands build loyalty when they demonstrate that they know and understand their customer’s individual needs. Seventy-one percent (71%) of customers love receiving personalized messages or discounts, and 50% pay attention to things that are recommended to them. Brands must effectively use data to improve the customer experience, demonstrating that they understand a customer’s needs to alleviate unnecessary pain points. 

“The study’s ultimate take-away is that meaningful brands must help consumers make confident decisions, curate relevant experiences, provide convenient solutions, and act with purpose that aligns with their customers’ values,” said Susan Seto, Senior Vice President of Market Strategy at Environics Research. “The principles we’ve identified in our study with Amazon point to best practices that should be an always-on commitment for brands in providing an experience that speaks thoughtfully to customers.”

The full report can be viewed here.