This new research roundup includes the latest batch of studies from Merkle on consumers and how they feel about data privacy, Resonate on three new consumer groups in 2022, Redpoint Global on what brand loyalty really means to consumers, Qualtrics on how employees define work flexibility, and Broadridge on how companies must improve their CX or face the prospect of losing customers.
Merkle: Consumers are Sophisticated About Data Privacy
In its 1Q 2022 Customer Engagement Report (CER), the Maryland-based data-driven customer experience management (CXM) company Merkle says consumers not only are increasingly aware of the personal data that they share with brands, but that they also possess a heightened sense of the value exchange they receive.
In its survey of 2,000 US consumers conducted at the end of 2021, the Merkle report indicates that consumers have a sophisticated understanding of data privacy and collection, with 86% of respondents indicating that they are likely to trade their data in order to enjoy personalized offers based on their interests and browsing or purchase history.
The report also has some advice for brands—that looking to the future, brands must prioritize the development of strategies, practices, and technologies that enable them to establish an opted-in relationship with each customer.
That conclusion was supported by two findings of the report. In the first finding, 90% of consumers surveyed express a willingness to share more data about themselves if they have a positive experience with a brand. In the second finding, the report notes that 70% of respondents reported they expect to receive something for their data.
Once brands establish a value exchange with consumers, they can then begin to build and enrich the data infrastructure necessary to deliver experiences personalized to the customer, the report notes.
Resonate: Brands Should Note Three New Consumer Groups in 2022
Resonate, the provider of an artificial intelligence (AI)-driven consumer data and intelligence platform headquartered in Reston, Virginia, reveals in its State of the Consumer 2022 report three new consumer dimensions in 2022 and their buying habits, media preferences, and other attributes, with implications for brands seeking to understand these new and important groups.
“Over the past two years, we’ve seen a massive shift in consumer sentiment and the influences that shape a person’s buying and brand loyalty decisions,” said Bryan Gernert, chief executive officer (CEO) of Resonate. “They’re based on more than demographics, or general needs and preferences—they’re being driven by a person’s worldview, and how the larger macro-environment is impacting the way they live.”
Among overwhelmed consumers, defined by the study as those managing both career and children, 44% are more likely than the average US consumer to buy online, but to return their purchases at a store. They are also 22% more likely to download a retailer’s app and 14% more likely to follow a brand on social media.
With influenced consumers, or those who consider social ads and influencers in their buying process, 34% have low discretionary income, and nearly 4 out of 5 cite best prices as their top retailer selection trait. While this group of consumers may have a long list of wish list items, the members need to keep purchases budget friendly, which also makes this group 13% more likely to use coupons.
And in the case of activist consumers, or those who prioritize corporate responsibility and are willing to pay more based on a brand’s advocacy of social and environmental issues, 80% are more likely to shop from direct-to-consumer (DTC) brands that ship directly to them. Given their propensity for supporting equality and social justice, activist consumers are also 151% more likely to prefer shopping at retailers that are women- or minority-owned.
Redpoint Global: Brand Loyalty Comes from Consumers Feeling Valued
New research from Redpoint Global, the Massachusetts-based provider of a customer engagement and data management software, reveals that consumers believe brand loyalty is about feeling understood and valued, not about discounts and loyalty perks.
In its survey of more than 1,000 US consumers conducted in January 2022, respondents also say that personalization is key to their connection with a brand. The chief way through which brands make individual consumers feel understood is by offering relevant product and service recommendations (52%), followed by the ease in which brands orchestrate consumer navigation of both in-store and online shopping (44%). The sharing by brands of relevant information in a timely manner also makes consumers feel they are understood (41%), according to the report.
Rewards for delivering personalization well and cultivating brand loyalty are evident. The survey found that 64% of consumers prefer to purchase a product from a brand that knows them, and that 34% will spend more money on a product to do so. Furthermore, 49% say they are more likely to consider purchasing from a brand that does personalization well, and nearly one in three are willing to overlook a single bad CX if they feel that a company is striving to understand them as a customer.
“Chasing discounts for goods and services is ultimately a race to the bottom in terms of costs,” said John Nash, chief marketing and strategy officer at Redpoint Global. “The organizations that will thrive are finding ways to increase customer loyalty through delivery of timely, relevant, and highly personalized information. Consumers strongly indicate that personalization and an overall frictionless customer experience are foundational to building relationships that are built to last.”
Qualtrics: Employees Explain What Flexibility Means to Them
In a study on what flexibility means in the new world of work, experience management company Qualtrics says that while flexible work is often cited as an antidote to burnout, not everyone agrees on what the term means. However, more employees would prioritize the ability to choose which hours of the day they work (41%) and what days of the week they work (25%), over the ability to work remotely from any location (14%).
The Qualtrics study also said the majority of employed people cite their jobs as the main source of their mental challenges and that employees want flexibility.
Even more than the ability to work at home in their pajamas or on a beach, what employees really want is flexibility around when they work. The vast majority (87%) of employed people want to be in control of their schedules and have their performance measured purely by results. One in three workers (36%) say flexibility to work whenever and wherever they want would have a positive impact on their mental health, beat out only by increased pay (58%) and working one day less a week (46%).
Workplace culture must also support the success of a flexible workplace. At least 55% say they think their career advancement or pay will suffer if they take advantage of flexible policies at work. Workers also mention a need for boundaries. Many remote employees say they start their days earlier (20%), take fewer sick days (18%), and are working more overall (17%).
Among remote workers, 24% have worked from a couch, 22% from a bed, 19% from a different city, and 10% from a car. The places that employees have worked from range from a bathtub to a Starbucks drive-through, the report notes among its findings.
Broadridge: Companies Must Improve CX or Lose Customers
A new report from Broadridge Financial Solutions, the public corporate services and financial technology company based in New York City, uncovers a widening discontent in CX among consumers, and that companies must act now or risk losing their customers.
In the last three years, the percentage of consumers that feel companies need to improve their overall CX has jumped from 35% to 65%, according to the report, 2022 CX and Communications Insights: Engaging Customers in a Digital World.
However, with consumers becoming more accustomed to digital engagement with companies, they expect personalization and customization in their communications. Nearly three-quarters want companies to customize their experience based on what the company knows about them, and 63% are more likely to engage and respond to interactive, personalized messaging.
Companies must also consider a more personalized digital experience and offer increased data security, with 54% of consumers noting that advances in digital identity security measures help them feel more comfortable engaging digitally with companies.
Moreover, companies must ensure they are providing engaging digital interactions. Technologies that consumers would most like to see used in communications to improve CX include predictive analytics that send communications at the right time based on expected needs (67%); digital interactive documents with customizable sections (67%); AI in customer service that helps answer simple questions immediately (63%); and QR codes on printed communications for consumers to scan and interact with on their phones (56%).
Despite the pandemic-induced rapid shift to digital, 44% of consumers still prefer to receive bills, statements, and other important documents in paper form. Even so, 71% of consumers that have not yet gone paperless would do so if companies made their digital experience more engaging, the report notes.
Author Information
Alex is responsible for writing about trends and changes that are impacting the customer experience market. He had served as Principal Editor at Village Intelligence, a Los Angeles-based consultancy on technology impacting healthcare and healthcare-related industries. Alex was also Associate Director for Content Management at Omdia and Informa Tech, where he produced white papers, executive summaries, market insights, blogs, and other key content assets. His areas of coverage spanned the sectors grouped under the technology vertical, including semiconductors, smart technologies, enterprise & IT, media, displays, mobile, power, healthcare, China research, industrial and IoT, automotive, and transformative technologies.
At IHS Markit, he was Managing Editor of the company’s flagship IHS Quarterly, covering aerospace & defense, economics & country risk, chemicals, oil & gas, and other IHS verticals. He was Principal Editor of analyst output at iSuppli Corp. and Managing Editor of Market Watch, a fortnightly newsletter highlighting significant analyst report findings for pitching to the media. He started his career in writing as an Editor-Reporter for The Associated Press.
