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Marketers under-leverage emotional connection: Report

Oct '18
Marketers under-leverage emotional connection: Report
Customers who feel an emotional connection to a brand are more valuable to retailers, in some cases spending twice as much, than customers who rate themselves as satisfied with the brand (CSAT), says a report. These emotionally connected customers have a 306 per cent higher lifetime value (LTV) and stay with a brand for an average of 5.1 years vs. 3.4 years.

Additionally, emotionally connected customers are also likely to recommend brands at a much higher rate (71 per cent vs. 45 per cent), according to the ‘Leveraging the Value of Emotional Connection for Retailers’ report by Motista, the pioneer of predictive emotional connection intelligence, that enables Fortune 1000 business leaders to accelerate customer and financial growth by activating emotional connection.

The study compares the behaviour - spend levels, lifetime value, and willingness to recommend brands - of customers who feel emotionally connected to a brand vs. consumers who are merely satisfied. Motista collected data from 2016 - 2018 from more than 100,000 customers of more than 100 retailers across multiple sectors.

In the apparel sector, satisfied customers spend $275 on their preferred brand, while emotionally connected customers spend close to $699, according to the report. In addition to higher spending, strong emotional connection also translates into greater share of wallet and longer tenures for retailers. As a result, emotional connection has an impact on customer lifetime value when compared to the satisfied customer metric.

"While most marketers agree that activating emotional connection is important, it remains a largely untapped opportunity for driving growth. But this study shows emotional connection can be identified, measured, and quantified, and used to drive customer acquisition, increase share of wallet, achieve higher lifetime value, build stronger loyalty, and influence brand advocacy," said Michael Mathias, president of Motista. (KD)

Fibre2Fashion News Desk – India

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