Infographic: Digital media can help increase frequency of purchase by 11%
Customers who are communicated through and actively use digital channels could display more loyalty than those who are targeted using offline media, research from Arena has found.
The research, conducted via 1,000 interviews, found that 21 per cent of online users feel a takeaway brand communicates with them a lot versus 13 per cent of offline users.
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This goes against the research that Byron Sharp put forward in his 2010 book ‘How Brands Grow: What Marketers Don’t Know’, which suggested that brands will only grow through penetration rather than loyalty.
“Whilst we respect Byron Sharp’s penetration theory, our new research suggests that digital is definitely disrupting the loyalty norms in sectors as diverse as financial services – traditionally a sector difficult to inspire loyalty in – food & drink and retail,” said Taj Sohal, insight director at Arena.
“Strategic use of the right mix of digital channels – be they apps, social media or websites – can help brands to grow by increasing frequency of purchase, weight of purchase, usage and consumer spend. Ours is just an initial investigation but it definitely suggests brands should take some time to look under the bonnet.”
Betters placed 8.9 bets via an app in the previous three months versus 6.9 in a betting shop, the research found, while online users have an average 2.3 financial products with their main current account brand versus 2.1 for offline users.
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