{"id":539358,"date":"2017-12-05T12:33:00","date_gmt":"2017-12-05T12:33:00","guid":{"rendered":"https:\/\/www.capgemini.com\/gb-en\/?post_type=press-release&#038;p=539358"},"modified":"2026-03-06T10:33:56","modified_gmt":"2026-03-06T10:33:56","slug":"loyalty_deciphered","status":"archive","type":"press-release","link":"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/loyalty_deciphered\/","title":{"rendered":"Retailers could see a 5% boost to annual revenues by driving emotional engagement with consumers"},"content":{"rendered":"\t\t<div class=\"wp-block-cg-blocks-hero-press-release\">\n\t\t\t<header class=\"header-hero-press-release\" role=\"main\" id=\"main-content-press-release\">\n\t\t\t\t<div class=\"container\">\n\t\t\t\t\t<div class=\"hero-press-release\">\n\t\t\t\t\t\t<div class=\"hero-press-release-content-wrapper\">\n\t\t\t\t\t\t\t<div class=\"row\">\n\t\t\t\t\t\t\t\t<div class=\"col-12\">\n\t\t\t\t\t\t\t\t\t<div class=\"header-title\">\n\t\t\t\t\t\t\t\t\t\t<h1>\n\t\t\t\t\t\t\t\t\t\t\tRetailers could see a 5% boost to annual revenues by driving emotional engagement with consumers\t\t\t\t\t\t\t\t\t\t<\/h1>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"header-description\">\n\t\t\t\t\t\t\t\t\t\t<p><\/p>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"header-date\">\n\t\t\t\t\t\t\t\t\t\t<span>Dec 5, 2017<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/header>\n\t\t<\/div>\n\t\t\n\n\n<section class=\"wp-block-cg-blocks-intro-para undefined section section--intro\"><div class=\"intro-para\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/loyalty_deciphered\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/loyalty_deciphered\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><h2 class=\"intro-para-title\"><strong><em>Traditional loyalty programs are currently failing to engage consumers; executives and consumers have disconnected views on brands that are driving emotional engagement<\/em><\/strong><\/h2><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-11 col-lg-10 offset-md-1 offset-lg-1\"><div class=\"article-text article-quote-text\">\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Paris, December 5, 2017\u2013<\/strong><a href=\"https:\/\/www.capgemini.com\"><strong>Capgemini\u2019s<\/strong><\/a><strong> Digital Transformation Institute has today released a new report titled \u201c<\/strong><a href=\"https:\/\/www.capgemini.com\/gb-en\/resources\/loyalty-deciphered-how-emotions-drive-genuine-engagement\/\"><strong>Loyalty Deciphered<\/strong><strong>\u2014<\/strong><strong> How Emotions Drive Genuine Engagement<\/strong><\/a><strong>,\u201d which seeks to understand the main drivers behind brand loyalty. The report, which surveyed more than 9,000 consumers and 500 executives, found that emotions have the strongest impact in driving consumer loyalty. <\/strong><strong>For retailers who are able to foster loyalty through higher emotional engagement with consumers, there is a great potential business benefit of possibly increasing annual revenues by 5%. <\/strong><strong>The new report also identified a stark disconnect between executives and consumers on how well organisations are making emotional connections; where 80% of executives feel their brand understands the needs and desires of their consumers, only 15% of consumers agree.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p><strong>Emotions are the main driver of loyalty<\/strong><\/p>\n\n\n\n<p>Current loyalty approaches are broken. An earlier report found that 28% of consumers are abandoning loyalty programs without redeeming any points and over half (54%) of loyalty memberships are inactive<a href=\"#_ftn1\">[1]<\/a>. One key reason is that many of today\u2019s loyalty programs attempt to buy consumer loyalty through monetary rewards only. Today\u2019s new <a href=\"https:\/\/www.capgemini.com\/gb-en\/resources\/loyalty-deciphered-what-about-the-uk\/\">report<\/a> reveals that emotions have the strongest correlation to loyalty over rational factors and brand values. Specifically, honesty and trust were noted as having the greatest influence on loyalty. However, there does need to be a balancing act with rational benefits. Consumers with high emotional engagement still believe rational factors and brand values are important when they decide on which companies they will bestow their loyalty.<\/p>\n\n\n\n<p><strong>Creating an emotional connection with consumers drives multiple benefits for retailers<\/strong><\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.capgemini.com\/gb-en\/resources\/loyalty-deciphered-what-about-the-uk\/\">report<\/a> found that 82% of consumers with high emotional engagement would always buy the brand they are loyal to when making purchasing decisions (compared to 38% of consumers with low emotional engagement). In addition, 81% of emotionally connected consumers will not only promote the brand among their family and friends, but they will also spend more too. The report found that 70% of consumers with a high emotional engagement spend up to twice as much with those brands.<\/p>\n\n\n\n<p>Emotionally engaged consumers are loyal to the brands they love and willingly act as ambassadors to family and friends. They want brands to be engaged and reciprocate their loyalty in two-way interactions (86%), but they also enjoy giving back to a brand (81%). Consumers also want differentiated shopping experiences both online (75%) and in store (73%)<\/p>\n\n\n\n<p><a href=\"https:\/\/www.capgemini.com\/gb-en\/experts\/consumer-products-retail\/kees-jacobs\/\">Kees Jacobs<\/a>, Consumer Goods &amp; Retail Lead, Insights &amp; Data Global Practice at Capgemini said, <em>\u201c<\/em><em>Consumers are immune to transaction based loyalty programs of the past, so a retailer\u2019s engagement with consumers needs to shift from being transactional to more emotional and meaningful. Decoding human emotions will ensure that brands have a better understanding of their consumers leading to building deep-seeded engagement and long-term loyalty with them. With a potential revenue boost of 5% up for grabs, and weak emotional connections ready to be exploited by the competition, no retailer can afford to ignore this reality.\u201d<\/em><\/p>\n\n\n\n<p><strong>City dwellers and millennials lead the rise of the emotionally engaged consumers<\/strong><\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.capgemini.com\/gb-en\/resources\/loyalty-deciphered-what-about-the-uk\/\">report<\/a> identified a new sub-set of consumers, those with a high emotional connection to the brands they use or visit frequently. Females and males are equally represented in this group, but millennials (58%, aged 18-36) and consumers in urban locations (53%) comprise the largest proportion. From the countries surveyed, Italy (65%) and Brazil (57%) comprise of the most highly emotionally engaged consumers followed by US (56%) and Spain (51%).<\/p>\n\n\n\n<p><strong>How to create an emotional connection<\/strong><\/p>\n\n\n\n<p>Retailers need to change the way they build relationships with consumers so they are focused on building engagement and mutual trust, rather than being transaction focused. The <a href=\"https:\/\/www.capgemini.com\/gb-en\/resources\/loyalty-deciphered-what-about-the-uk\/\">report<\/a> sets out four key components to driving \u2018human loyalty\u2019 that retailers should follow to create strong positive emotions, and therefore deeper engagement and loyalty with their consumers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Respect:<\/strong> Fulfil your commitment by promoting honesty, trust, and integrity.<\/li>\n\n\n\n<li><strong>Reciprocate:<\/strong> Build a two-way relationship with consumers<\/li>\n\n\n\n<li><strong>Recognise:<\/strong> Make the effort to truly know your consumers and understand what they care about to create meaningful experiences.<\/li>\n\n\n\n<li><strong>Reward:<\/strong> Provide timely, meaningful rewards that promote long-term relationships in exchange for loyalty.<\/li>\n<\/ul>\n\n\n\n<p><strong>Research Methodology<\/strong><\/p>\n\n\n\n<p>Capgemini Digital Transformation Institute surveyed 548 executives at director-level or above at large companies with 80% of the executives in companies with reported revenue of more than $1 billion in FY 2016. It also surveyed 9,213 consumers aged 18+. Both surveys took place from August to September 2017, and covered nine countries\u2013Brazil, France, Germany, Italy, the Netherlands, Spain, Sweden, the United Kingdom, and the United States; and four industries\u2013Financial Services, Retail, Telecom, and Automotive.<\/p>\n\n\n\n<p>Capgemini also held 17 in depth discussions with a range of senior executives in customer experience, marketing, and strategy including Chief Marketing Officers, Chief Customer Experience Officers, Marketing\/ Branding Directors, Heads of Strategy, and leads of loyalty programs. In addition, it interviewed leading experts in customer experience and loyalty as well as academics. This helped Capgemini to understand how organisations define loyalty and how they emotionally connect with consumers. Two virtual focus groups were also held with consumers. One included consumers living in the United Kingdom and within the 22-36 age group and the second included consumers living in the United States within the 37-52 age group.<\/p>\n\n\n\n<p>A copy of the report can be downloaded <a href=\"https:\/\/www.capgemini.com\/gb-en\/resources\/loyalty-deciphered-how-emotions-drive-genuine-engagement\/\">here.<\/a><\/p>\n\n\n\n<p>-ENDS-<\/p>\n\n\n\n<p><strong>About Capgemini<\/strong><\/p>\n\n\n\n<p>A global leader in consulting, technology services and digital transformation, Capgemini is at the forefront of innovation to address the entire breadth of clients\u2019 opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organisations to realise their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of 200,000 team members in over 40&nbsp;countries. The Group reported 2016 global revenues of EUR 12.5 billion.<\/p>\n\n\n\n<p>Visit us at <a href=\"http:\/\/www.capgemini.com\/#_blank\">www.capgemini.com<\/a>. <em>People matter, results count.<\/em><\/p>\n\n\n\n<p><strong>About the Digital Transformation Institute: <\/strong>The Digital Transformation Institute is Capgemini\u2019s in-house think-tank on all things digital. The Institute publishes research on the impact of digital technologies on large traditional businesses. The team draws on the worldwide network of Capgemini experts and works closely with academic and technology partners. The Institute has dedicated research centres in India, the United Kingdom and the United States.<\/p>\n\n\n\n<p><a href=\"#_ftnref1\">[1]<\/a> Colloquy Customer Loyalty Census, 2017<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n<div class=\"wp-block-cg-blocks-cg-block-related-content\"><section class=\"relatedContentBlock\"><div class=\"container\"><div class=\"row\"><div class=\"content-title col-12 col-md-8\"><h2 class=\"related-content-heading\">Related News<\/h2><\/div><\/div><div class=\"row relatedContent\"><div class=\"col-lg-4 col-md-6 col-xs-12\">\n\t\t\t\t\t\t\t<div class=\"box\">\n\t\t\t\t\t\t\t\t<a aria-label=\"Read more about Two-thirds of organisations rate physical AI as a high priority for the next three to five years\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/two-thirds-of-organisations-rate-physical-ai-as-a-high-priority-for-the-next-three-to-five-years\/\" class=\"anchorWrapper\">\n\t\t\t\t\t\t\t\t\t<span 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This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v22.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Retailers could see a 5% boost to annual revenues by driving emotional engagement with consumers - Capgemini UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/loyalty_deciphered\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Retailers could see a 5% boost to annual revenues by driving emotional engagement with consumers\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/loyalty_deciphered\/\" \/>\n<meta property=\"og:site_name\" content=\"Capgemini UK\" \/>\n<meta property=\"article:modified_time\" 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