Despite the regular public calls for more ethical fashion options, few consumers recognise ethical values as a key driver of loyalty when it comes to their favourite fashion brands. In fact, only one-fifth of consumers (21 per cent) are loyal to fashion brands because of their ethics. That’s according to new research from retail experts, Emarsys, released to coincide with this year’s Sustainable Fashion Week.
Emarsys’ new Customer Loyalty Index, a study of 7,000 consumers across five countries, reveals what really matters for driving consumer loyalty in fashion: variety and discount. The indication is that fashion retailers looking to drive customer loyalty don’t need to rely on ethical signalling or overt brand values. The research shows that 62 per cent of consumers are loyal to fashion brands for their diverse product selection, while 44 per cent are loyal as a result of discounts, points or incentives.
Still, demand for incentives doesn’t necessarily mean just running a traditional loyalty card scheme. The same research also showed that over a third of consumers (37 per cent) have loyalty cards that they never use. As such, fashion brands should look for new ways to offer rewards such as app-based loyalty schemes, memberships, and discounted subscription services.
Commenting on these findings, Payal Hindocha, director customer engagement solutions GTM at Emarsys said: “Sustainability is hugely important to fashion — more now than ever before. Nobody is saying fashion brands should give up on their sustainability effort. But sustainability is also being sold as a way to drive more sales and repeat purchases. In reality, that’s not necessarily the case. Loyalty is driven by a wide variety of factors, of which — unfortunately — ethical behaviour is still only one small part.”
“Of course, it’s a given that consumers are motivated by price — every fashionista loves an incentive such as a discount or reward. But we must remember that the key concern for most retailers, included those in the fashion industry, is keeping consumers returning regularly, instead of shopping just once for a one-off bargain. This is fundamental to achieving greater customer loyalty.”
“Fashion retailers need to put sustainability at the heart of their brands, but in order to drive real customer loyalty, they need to take a more all-encompassing approach. Ethical products, delivered with a strong customer service, at the right price.”
Share