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Is there a turning point on the lack of loyalty between the Spanish market and their brands?

28/04/2019

Relationship marketing is a strategy designed to improve customer loyalty and increase the value of a product or service by providing customers with information directly suited to their needs and interests, and by promoting open communication, interaction and long-term engagement. Organizations can also make this strategy a competitive advantage by using data to anticipate commercial trends. 

Two years ago, Mediapost published a case study called the ‘’Loyalty Monitor” study in which they explored the relationship between the Spanish and their goods and brands.

This year Mediapost brought out a new case study focusing on relationship marketing to find out exactly which are the most important attributes for consumers during the buying process. The study called “Case study of relationship marketing”, interviewed 1,016 wiling participants between the ages of 18 and 65 from all over the country.

Firstly, the case study aimed to find out how customers are being made aware of a brand’s sales and discounts and which method is the most effective. 64% of participants preferred receiving this information via email marketing campaigns, followed by 49% who opted for the more traditional leaflet mailing, this figure rose to 59.6% amongst the participants over the age of 55.

Secondly, the case study looked at whether there had been any change, since the previous research, in the loyalty these consumers have for a specific brand. The study revealed that now only 5.9% of the Spanish market is loyal to a unique brand, as opposed to 12% two years ago. Researchers anticipated this decline in brand loyalty and therefore tailored the questions in the case study to determine the reasons for this. Results showed that 58.7% of buyers will make a decision on which brand to buy while at the point of sale, with 54% making a change in brand choice simply because they want to try something new, and 70% make their choice after comparing the quality and price of similar products offered by different brands.

The final part of the case study focused on how post-sale relationship marketing campaigns can influence a customer to continuing to buy that particular brand. 57% of participants liked loyalty clubs and thought they had a positive effect on their brand loyalty, with 85% of them favoring e-mail as a means of communication. Further results revealed that only 1 in 3 brands in the Spanish market utilize a post-sales relationship with their customers, which could explain the shift in loyalty. 

This case study has shown us that there has not necessarily been a shift away from brand loyalty in the Spanish market but rather that there is an appetite  to experience new products and a willingness  on behalf of Spanish consumers to try new products and to establish relationships with brands in more than one channel. This bodes well for companies that come up with new ideas and are willing to take risks with their product offerings. The results also revealed how important it is for brands to utilize an effective post-sale relationship marketing campaign to generate loyalty and better return rates in a market with ever increasing competition and savvy consumers who are willing to give new products a try.

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