Customer

Engagement
2016

Talking the consumer’s

language: retail
2016

Campaign sponsors

Research partner
 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Contents
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Relay42’s perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Organic’s perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Acxiom’s perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Executive summary: a how-to for engagement .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1. Consumer approaches to loyalty.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Habits persist.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Maximising mindsets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
The impact of category on buying behaviour.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Consumer types and the loyalty spectrum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Pinpoint the deal.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2. Criteria for engagement and current behaviours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
What makes retail brands loved?.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Sticking with a brand. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
What consumers are interested in receiving from brands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Latent lust for loyalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
What causes people to engage with brands.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
What people are willing to receive from brands.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
The criteria for online and offline. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3. New rules for customer engagement.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1. Relevancy over personal.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
2. Incentivising data sharing.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3. Build a reciprocal relationship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
4. Humanise digital engagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
4. Concluding implications.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
About the DMA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Copyright and disclaimer.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
About our sponsors/partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Campaign sponsors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Research partner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

2 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Introduction
As marketers we all want to truly understand customers’ experiences, and prepare ourselves for new technologies
and media, arriving at an increasing pace. But above all we need to understand what good looks like. That’s why
the DMA’s Customer Engagement Committee decided to explore the fusion of data-driven technology with
behavioural insights, and see how this makes a difference to the bottom line; to ROI, and what makes for excellent
customer engagement.

This research sets out the new rules of engagement that will form the basis for an ongoing stream of customer
engagement activity from the DMA.

In 1999, when the internet was still a relatively niche and uncomplicated place, Microsoft founder Bill Gates wrote
that, “Your most unhappy customers are your greatest source of learning.”

While this still stands true, changes in consumer behaviour, predominantly driven by new tech, mean that the
opportunities to listen to our customers – unhappy or not – are endless. So what are the new rules of engagement?

While we are clearly still making strides into the long grass that is our fragmented and disparate media landscape,
we are also beating a path through to new ways to engage potential customers. Our customer engagement research,
conducted by our partners the Future Foundation, shows how consumers can be engaged today.

Technology has brought new rigour and vigour to the industry. Responses can be measured, quantified and
processed to give new insights into behaviour, preferences and more. However, this can have unintended consequences,
such as ‘brand stalking’, where something you have bought (or not) follows you around on every website.

This research shows that consumers’ purchase patterns are complex. People are persuaded by brands, with 40%
habitually buying their preferred brands. However, 76% agree that they are willing to spend time to get the best
value. Consumer behaviour is eroding brand loyalties, and there has never been a better opportunity for new brands
to challenge the status-quo.

So what do customers want? The top four choices are quality (72%), service (64%), offers (63%) and convenience
(57%). These responses demonstrate this changing brand affiliation, with brand qualities important but potentially
trumped by other factors.

The desires and needs of consumers are universal, but the ways in which people use new media are constantly changing.
This report gives a snapshot of this changing media usage and how people plan to use new media in the future.

Now artificial intelligence is accessible to marketers, the same algorithm that generates brand stalking could be
presented differently to give people the personal touch they crave – 55% of younger respondents wanted to explore
new ways to interact, like chatbots and virtual assistants.

To find out more about the complex interactions and how marketers can better engage potential customers, read on.

Scott Logie
MD, REaD Group Insight
Chair, DMA Customer Engagement Committee

3 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Relay42’s perspective
In a maturing digital age, consumer channels are growing exponentially, and so is the need – and the difficulty – in
engaging with customers on a relevant, personal and contextual level. This is why a Customer Engagement report like
this is so crucial now. The following analysis of customer survey results not only deep dives into what exactly makes
customers today tick, but an overarching theme emerges: customers crave dialogue. Fail to engage, and run the risk
of seeing them flock elsewhere.

What does this say about the current maturity of marketers from a data management perspective? As the
landscape for marketing technology becomes more and more crowded to keep up with customers, this report
highlights the critical need to connect all customer data sources. Brands need this not only to provide the right offer,
in the right place, at the right time – but to meet less concrete communication goals, by fostering loyalty, likeability
and transparency.

Here, the DMA offers invaluable insight and best practices in how to reach, and keep today’s customers. As an
enterprise Data Management Platform for some of the world’s best in class brands, Relay42 is delighted to sponsor a
piece of research which shifts market mindsets, and creates a new standard for brand to customer relationships.

Tomas Salfischberger
CEO, Relay42

4 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Organic’s perspective
Change has always been part of the human dynamic, but the speed of change is now the defining feature of our era.
As technologies emerge, mature and are replaced like digital mayflies it’s all anyone can do to keep up let alone
get ahead.

So, as we scrabble to adopt and understand new platforms we begin to believe that it’s not just technology
changing but our fundamental nature. It isn’t just how people are interacting with brands that is different,
but what they want from them. Our instinct is to dive headlong into trying to build richer, more meaningful
(and hopefully longer) relationships.

But here’s the thing. In all of this the one thing that isn’t changing is the customer. Where and how they engage with
you will change, but what they want hasn’t.

Customers don’t want a new relationship, they want a better version of the successful relationships brands have built
in the past.

Think about any shop that you have returned to time and again. What lured you back each time? The fact that they
knew your name, or listened to the details of your recent holiday? Or was it simply the fact that they offered great
service, great value and great deals that they knew you would be interested in?

We talk about customer engagement as if the aim is to have a personal relationship with each customer, knowing
their every like and dislike, to be their confidante ready to cheer them up when times are tough. But really we’re
missing the point. Yes, customers want a personalised experience but what they mean by personalised and what we
think they mean seems to be disconnected.

The relationship should be personal in areas relevant to the customer and add value to their experience of your
product or service – not try to position your brand as their ‘BFF’. And thanks to digital technology we’re now in a
better position than ever to do that.

The brand/customer relationship is inherently transactional, and so customer engagement must relate back to the
transaction and the services you offer. How are you making it better, easier, more enjoyable? If you’re not then it
doesn’t matter how close you try to get to the customer they will just retreat from you. They don’t want you to be
their friend, they want you to be a better retailer.

If this all sounds a bit cold, don’t think that loyalty is dead. Far from it. Compelling and meaningful communications
that support these fundamentals are what will engage customers. But the fact remains that what makes these
communications effective, and keeps users engaged with a brand, is not that you know their name and start your
email with it, but that you continually offer them the best products, deals and service – and that your attempts at
engagement enhance and add value to that.

The report that follows proves that understanding people, not technology, is vital to the future success of brands who
want to achieve better customer engagement. Create customer engagements that enhance your core proposition,
rather than ones that distract from it. Make things relevant to the customer and you’re onto the start of a wonderful
relationship.

James Moffat
Executive Director, Organic

5 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Acxiom’s perspective
Consumers are fickle. I know, I am one. Our expectations are high and though our loyalty may be strong, for most
products we can be swayed by a number of things. And, when it comes to those ‘things’, it’s important to remember
we go out, or very often stay in these days, looking for a shirt, or a flight, a car, shoes or even some beans.

What we don’t do is go shopping for marketing; or do we? Many of us will remember the famous ‘Pepsi taste tests’
of the 80’s and 90’s where blind testing in the street apparently revealed that Pepsi tasted better than Coke, the
latter consistently outselling the former to this day. Why? Well, the consumer didn’t just buy an answer to their thirst
or need for a sugar rush, they also bought ‘feel good’, they wanted to feel good by being associated with a brand,
something we increasingly build with data and technology these days.

The power of the brand is demonstrated when we look at the single biggest factor for a consumer when choosing
what to buy, namely the product itself, it’s utility and quality. But how do we ascertain that today? The truth is we do
it the same ways we always have, including asking someone! What has changed is just how easy it is to do it and how
reliable the information is when you often deal with a great many more options leading to a rating of sorts. Again,
data-driven marketing can deliver a significant difference when ‘socialising’ trust in a brand.

This report is a brilliant insight into what makes us tick, and let’s not forget we often say one thing and do another,
that’s just being human but we data-driven marketers can even do a better job of predicting our ‘humanity’ with
sophisticated techniques. Importantly, the report reveals a disparity between how people want brands to interact
with them and how we’re doing it today.

Tantalising is the revelation that consumers really do want to be ‘surprised’ by brands, with great offers and gifts; but
how can we do that without being able to recognise the individual and connect their data to understand just how
we should surprise them, with what and when. The report also speaks of differences in what people value in online
versus offline environments; though consistency must surely underpin any variations.

Crucially, we need to look for every opportunity to ‘Drive Value Exchange from the Data Exchange’. Even though it
may not always be visible to the consumer, we need to ensure we’re collecting, curating and using the data they
allow us to have to better understand them and the individual journeys they are on. We must then be creative in
driving great engagement by optimising the customer engagement tools. And, this is not just when someone buys
but increasingly also when they consumer a product or service e.g. IoT or the Connected Car.

The more marketers can work with consumers and for consumers, the better we will serve them and the more
successful we will be. This is something that has been proven over the ages, how we achieve it is what has changed
and in data we have a brave new world we need to continue conquering; let’s do so by putting the customer first and
this report helps you do exactly that.

Jed Mole
European Marketing Director, Acxiom

6 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Executive summary:
a how-to for engagement
1. Functional first: Consumers prioritise hard benefits such as convenience, quality, deals and good service and
data driven strategies can help marketers constantly improve how they deliver on consumers’ core wants.
• The top reasons why brands are favourites are quality (72%), service (64%), offers/deals (62%) and being
the most convenient/easy (57%)
• 72% are interested in receiving a delivery alert status after purchasing a product

2. Creatures of habit but with savvy shopping goals: Brands need to constantly reprove their value in consumers’
eyes. Habitual purchasing is common but price sensitivity and comparison continues to be aspirational and ever
easier to achieve.
• 40% of consumers fall into the “Active Loyal” consumer type
• 76% agree that they are willing to spend time researching items/products in order to get the best value

3. Relevancy rules: Brands that can create genuinely relevant interactions will stand out. Consumers favour
heightened forms of personalisation over content.
• 63% are interested in receiving offers tailored to what they had bought after a purchase
• 27% are interested in receiving interesting content about a brand/shop/site’s history tailored to what they
like after a purchase

4. Feedback please: Brands can empower and engage consumers through greater reciprocity. Consumers are
craving a more open dialogue and more feedback from brands they like.
• 40% of consumers are willing to be rated as a customer by brands
• Just under half believe brands should respond to comments people make about them on social networks –
rising to 61% of Gen Y

5. Reward me: Brands need to show consumers more appreciation. Many have high expectations of rewards they
should receive.
• Half believe they should be rewarded if they recommend products to friends and family
• Just 11% receive surprises/free gifts from their favourite retailer, but in fact almost half of the sample like/
would want this

6. Make it special: Brands are currently not meeting consumers’ expectations in terms of surprise and exclusivity.
Brands can heighten the impact of these forms of engagement through personalisation.
• 62% of consumers agree that they would like it if loyalty offers they receive from brands/shops or sites
related more closely to what they like

7. Data incentives: Brands must get much better at communicating to customers the hard benefits of using their
data. While they remain cautious about sharing detailed personal information with brands, consumers are more
willing to share this when benefits are clearly presented.
• In order to get lower prices, 54% would be willing to share their email address; 17% would be willing to
share their past purchasing history with the brand

8. Digital gets emotional: Brands need to find ways to better engage with consumers more intuitively in the
digital space. Chat messenger/chat bots and virtual reality are creating more personalised yet human service
experiences online.
• 48% of consumers are interested in at least one virtual customer service innovation

7 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

1. Consumer approaches to loyalty

Market research is too often written in the language of marketers. To understand the language consumers really use
to describe their interactions with brands the DMA conducted a primary qualitative piece with 1,000 consumers to
uncover the terminology being used by shoppers to discuss their retail and engagement experiences.

The research, for example, found that consumers do not have a definitive word for shops, brands or e-commerce sites,
and that consumers use the word “item” twice as often as the word “product” when talking about a shopping experience.

Using the findings, we designed a quantitative survey to delve deeper into consumer attitudes towards retail brands
(excluding Supermarkets/FMCG), and their interactions with them. This report lays out the key findings from this research.

In the first section, we outline how consumers perceive their loyalty towards brands: are shoppers doggedly ruthless
in their search for the perfect offer, or do habits play a stronger role in their approach? Does what we buy impact our
willingness to shop around? And how does all this impact brands’ ability to engage consumers with promotions?

Habits persist
A majority of consumers today admit they often are habitual shoppers, with just over half agreeing that they would
tend to use the same shops, brands and sites rather than looking for alternatives.

Further, some 43% affirm they buy from brands they know even when they know they could be getting a cheaper
deal elsewhere.

The tendency towards sticking to certain brands is stronger when people make everyday purchases – 64% of
consumers agree they stick with brands they know in this context, with little variation in agreement levels among age
groups and gender.

For important purchases, it is still a majority (52%) who agree they choose brands they know, but it is younger
consumers who are especially likely to agree (68% of 16-24s) This is the space where brands can truly establish
themselves as shortcuts for quality, convenience and good service.

Maximising mindsets
Such habitual and loyal behaviours may come at odds when we consider the high sensitivity consumers display
towards prices, deals and competing offers.

An overwhelming 8 in 10 agree that when they make important purchase decisions they spend time comparing
prices, and 76% agree that they are willing to spend time researching items/products in order to get the best value.
More, ubiquitous price comparison, review sites and price/promotion scanning tools now available at consumers’
fingertips mean the search for the best value is ever more efficient and easy to accomplish.

While people may often revert to habit and choose brands they are familiar with, the desire to optimise purchases is
now almost a default aspiration for all, placing a constant pressure on brands to reaffirm their value and reconfirm
consumers’ willingness to buy from them again. In this context, brands need to be easily searchable/comparable and
importantly need to understand where consumers are researching and how.

Brands that are findable and consistently persuade that they are the ones offering the best value and deals are those
that will be more likely to fall into a consumer’s habitual basket of go-to brands.

8 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

The impact of category on buying behaviour

When looking at how people tend to buy across different categories, both habitual and value-savvy behaviours are at
play to varying degrees, and even simultaneously.

When buying clothes or cosmetics more than a third would claim that they usually choose their favourite brands but
just 16% and 14% would do this when buying electronics or furniture respectively.

Conversely people are more likely to want to shop around when buying items in the electronics or furniture category,
and be more prepared to buy from a new brand. Understandably, consumers can tend to view brands as mere
commodities when they are buying more functional products/items (such as a new sofa or laptop) and thus it is these
categories that will be more susceptible to scrutiny and disloyalty. Too high a price point for items in these categories
will naturally encourage greater price sensitivity. This said, considerable proportions sit in the middle; likely to want
to choose brands they know but will not do so blindly, two fifths will consider deals and offers available during the
process even if they end up choosing brands they know.

Chart 1 | Thinking about when you buy the following items/products, which of the following best describes how
you choose the brands/shops/sites you use?
100%

90%

80%

70%

60%

50% 46%
43% 42%
41% 40% 41%
40% 36% 37%

30% 24%
21%
20% 16%
14%

10%

0%
I usually use my favourite brands/shops/sites I usually use brands/shops/sites I have I usually prefer to shop around to find
I have used before without spending time used before but spend time comparing a good offer and I am prepared to use
looking for alternatives choices to find a good offer brands/shops/sites I haven't used
before to do so

Clothes for myself Electronics (e.g. TV, computer, tablet, games console)
Furniture Beauty products/cosmetics

9 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Consumer types and the loyalty spectrum

To further understand how consumer approaches to loyalty range across a spectrum, we examined people’s attitudes
towards their shopping habits for everyday purchases and then for important purchases – assessing whether they
agree or disagree that they tend to stick to brands they know in these instances. This analysis created 4 consumer
types defined by their distinct approaches to shopping:
• Active Loyals: These people tend to stay loyal to brand/shops and sites for both everyday and important
purchases; 40% of the sample fall into this category. Older and younger consumers are both slightly more
likely to be in this segment.
• Habitual Loyals: These people tend to stay loyal for everyday purchases but less so for important purchases;
23% fall into this category. Men are slightly more likely to be in this segment than women.
• Situational Loyals: These people tend to be loyal when making important purchases but are more flexible
and fleeting when making everyday purchases - when it matters most these people will default to using their
trusted brands. Just 9% of the sample falls into this category, rising to 15% of 16-24s.
• Active Disloyals: These people tend to disagree with the statements and are hence much more likely to be
disloyal in their approach to brands. Women and 45-64s are more likely to fall into this segment compared to
other groups. Twenty seven percent of the sample makes up this segment.

Chart 2 | Consumer loyalty types, by demographics

100%

90% 18%
24% 27% 25%
27% 30% 29% 32% 32%
80%
15%
70% 11% 7%
9% 9% 8%
8% 10% 10%
60%
21% 24%
50% 23% 25% 21% 23% 22%
23% 25%
40%

30%
46% 44%
20% 40% 40% 41% 41% 41%
36% 33%
10%

0%
Total Male Female 16 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+

Active Loyals Habitual Loyals Situational Loyals Active Disloyals

Pinpoint the deal

Given consumers range from being open to assessing offers/comparing prices, aspiring to get the best deals to
tending and defaulting to use brands they know across their shopping experiences, when do promotions and offers
most engage shoppers?

In this context, getting the timing and relevance of deals right to capture consumers’ interest is crucial. Indeed, only 1
in 5 will admit to being purely driven by discounts, and agreement levels are statistically the same across the different
loyalty types.

Instead, consumers more readily agree that they are often swayed by deals and offers when they are actively
shopping and are persuaded to change their mind during their experience (54%) – rising to 7 in 10 among the
Situational Loyals. Consumers are more likely to engage with deals that precisely target them when they are actively
considering a purchase, or when they are ready to buy. As an engagement tactic offers are less relevant when presented at
the research stage. It’s only a tipping factor when consumers might not be 100% sure of a purchase but are at least
partly implementing the behaviour.

10 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

2. Criteria for engagement

and current behaviours
Next we outline what criteria makes people engage with retail brands (non-FMCG, both in-store and ecommerce) –
what reasons would people prioritise when asked to think about why they like retail brands they favour, why do they
choose to continue to shop with certain retailers, and importantly what types of interactions do they really want to
receive from brands?

What makes retail brands loved?

In the survey consumers were asked to name their favourite retail brand and then to select the reasons why. When
presented with a number of options, a clear hierarchy emerges in what consumers value the most. The functional
and tangible comes first, followed by more emotional reasons and then by optimised service elements – such as
newsletters about new items/products.

It is clear that people’s favourite brands are the ones that are providing quality products, great service, meeting ever
growing demands for convenience and offering good deals. Ultimately consumers are happiest when their core
tangible needs are being met; brands that simply deliver on these essential needs are those that can continually win
favour from customers, even when they remain open to considering other brands.

Beneath these core needs, when brands are considered a favourite, there is also a real emotional connection for some
consumers. 2 in 5 admit that they “just love the brand”, with women more likely than men to say so (25% vs. 18%
within top three reasons). Older consumers are more focused on reliable service if something goes wrong and on
quality. They are also more likely to value heritage.

Once practical considerations are met, around 1 in 5 regard tailored recommendations, and relevant loyalty schemes
as reasons why they like their favourite retailers - all of which are engagement tactics that rely on use of customers’ data.

11 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Chart 3 | Which of the following, if any, are reasons why this retail brand/shop/site is your favourite?

Quality of items/products available 72%

Good service 64%

Good offers/deals 62%

Most convenient/easy 57%

Lowest prices 46%

Good at dealing with issues - e.g. returns, 44%

malfunctioning items

I just love the brand/shop/site 39%

Friendly/helpful/welcoming 33%

Reflects my personality/style 32%

Has a heritage/well established 29%

They remember me/my details 20%

They keep me updated about new items/

products I might be interested based what 19%
I like or have bought from them before

Good loyalty/rewards scheme 17%

They offer me tailored deals/offers specific to

13%
what I like or have bought from them before

The brand/shop/site makes me feel appreciated

13%
after I have bought an item/product from them

My friends/family shop there 13%

They offer me a personal service 11%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

12 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

When we consider people’s favourite brands by the loyalty consumer types, 45% of consumers who prioritise service
factors over price factors are Active Loyals, suggesting that they will tend to engage more positively with brands that
demonstrate good service elements.

Thirty three percent who determined price-related factors as more important attributes of their favourite brand fall
into the Active Disloyal segment; this group are also less likely to prioritise service over low prices/deals.

To engage consumers who tend to take a disloyal approach to shopping, price will always have to be competitive and
value clearly communicated first. For the more actively loyal, delivering great service beyond the functional will be
more appreciated and vital to keep consumers happy.

Chart 4 | Reasons for brand favouritism split by consumer loyalty type

100%

90% 23%
33%
80%

10%
70%
7%
60%
22%
50% 24%

40%

30%
45%
20% 36%

10%

0%
Price more important in favourite brand Service more important in favourite brand

Active Loyals Habitual Loyals Situational Loyals Active Disloyals

Sticking with a brand

Consumers were also asked to select the reasons why they had continued to use a brand/shop or site even when they
could get a cheaper deal elsewhere. The results mirror closely the previous hierarchy of reasons for one’s favourite
brand, and further reinforce the importance of meeting consumers’ core needs - as these are the immediate reasons
that reassure consumers they can stick rather than switch to another brand.

Interestingly, a personalised service - that is personal in the sense of using a customer’s name - is of lowest priority
when put against other criteria. The kind of personalisation that consumers find engaging is not really when a brand
attempts to create a personal “Hi! Insert name” connection with customers. Whilst this is expected, it’s not respected.

Instead, data-driven personalisation that improves the delivery of the practical/core needs that people care most
about - that optimises convenience, pinpoints the perfect product or makes deals and offers ever more relevant -
are the personalisation options that consumers show most appetite for or engage with. Crucially the type
of personalisation that they crave relies on brands carefully using customer data to create, hone and tailor
communications to be relevant to them and the products they are interested in.

13 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Chart 5 | Which of the following are reasons why you have continued to use a brand/shop/site even though you
could get a cheaper deal elsewhere?

Good service 52%

Quality of items/products available 48%

Most convenient/easy 46%

Good offers/deals 32%

Good at dealing with issues - e.g. returns,

32%
malfunctioning items/products

Good loyalty/rewards scheme 25%

Friendly/helpful/welcoming 24%

I just love the brand/shop/site 23%

Has a heritage/well established 17%

Reflects my personality/style 15%

The brand/shop/site makes

12%
me feel valued/special

They remember me/my details 12%

The brand/shop/site is ethically/

9%
environmentally responsible

My friends/family shop there 9%

They keep me updated about new deals

I might be interested in based on what 8%
I like or have bought from them before

They offer me tailored offers/deals specific to

7%
what I like or have bought from them before

They offer me a personalised

7%
service - e.g. use my name

None of these 2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

What consumers are interested in receiving from brands

This need for individualised communications rather than personal touch messaging alone is clearly shown in what
consumers say they are interested in receiving from brands. Sixty percent are happy to continue to receive or are
interested in receiving offers/deals tailored to what they like or have bought before, a similar number want to receive or
continue to receive reminders or recommendations for deals that are specifically tailored to them. Other options that
were presented as more general such as expert advice and tips piqued less interest from respondents in comparison.

Consumers are least interested in content that is more focused on the brand itself. Just 1 in 5 would want to receive
content about a brand’s items or history. Consumers are a little more interested in receiving advice and expert tips;
3 in 10 would like to receive this from their favourite brand, shop or site. It is clear that brands that are able to find
ways to present offers, deals and communications that feel personally relevant to individuals are those that will
be able to achieve a greater level of engagement with their customers. This mirrors the move from mass brand
advertising to a more 1-2-1, personalised marketing focused on relevance and meeting the needs of the individual.

14 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Chart 6 | Thinking about your favourite retail brand/shop/site, which of these do you receive from them or would
be interested in receiving in the future?

Loyalty scheme points/rewards 24% 46% 12% 18%

Exclusive access to items/deals 24% 39% 15% 22%

Time-sensitive discounts - e.g. offers/deals

26% 36% 16% 23%
that last for a limited time

Offers/deals tailored to what

I like or have bought before
33% 27% 20% 20%

Reminders of deals/offers I might be interested

in based on what I have bought from them before
26% 30% 17% 27%

Recommendations for items/products I

might like to buy tailored to what I like 25% 29% 16% 30%
or have bought from them before

General news/updates about latest products/items 29% 25% 17% 29%

Requests for my feedback

(e.g. customer survey, to write a review) 28% 24% 20% 29%

General news/updates about the

brand/shop/site's latest developments
22% 28% 17% 32%

Competitions 15% 32% 13% 41%

Advice and expert tips 16% 29% 14% 40%

News about special events hosted or sponsored

by the brand/shop/site I could attend 16% 28% 14% 41%

Location-based discounts - e.g. offers/deals

sent to my mobile when I am near a shop 10% 32% 12% 47%

Interesting stories about the brand/shop/site's items via

videos/articles/magazines/emails/social media tailored 10% 23% 13% 54%
to what I like or have bought from them before

Interesting stories about the brand/shop/site's history via

videos/articles/magazines/emails/social media tailored 10% 22% 12% 56%
to what I like or have bought from them before

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

I currently receive this and am happy to receive this in the future

I don't currently receive this but am interested in receiving this in the future
I currently receive this but am not interested in receiving this in the future
I don't currently receive this and am not interested in receiving this in the future

15 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Latent lust for loyalty

In the above data we also highlight that the most enticing offers consumers are interested in receiving from their
favourite brands are loyalty rewards, exclusive access to items/deals and time-sensitive discounts – which are by
nature a kind of unique offer.

Loyalty and exclusivity are highly emotive engagement tools; ultimately helping to make consumers feel like they
are special and delivering hard rather than soft benefits. These kinds of offers also simultaneously help to meet the
consumer demand for individualised communications.

With this in mind it is interesting to note that 62% of consumers agree that they would like it if loyalty offers they
receive from brands/shops or sites related more closely to what they like. Clearly while consumers favour loyalty-
focused engagement there is currently a gap between what brands are offering and consumers’ expectations.
Consumers are looking for relevant loyalty rewards; delivered through data driven strategies, such as using customers’
purchasing or browsing history.

What causes people to engage with brands

The gap between consumer expectations and brand delivery is especially striking when looking at preference vs.
current engagement. There is a clear disparity between what people’s favourite brands are doing to interact with
them and what they like/ would like them to do. Consumers want feedback, reward and attention for engaging
with brands.

Currently the most common way for brands to interact with customers is to provoke a response or prompt
engagement rather than react to or to proactively reward or respond to them; around 4 in 10 consumers affirm
that their favourite brand/shop/site asks them to write reviews and asks them for feedback on service.

While not insignificant proportions of consumers are indeed willing to give such feedback to brands - 39% have given
feedback to their favourite retailer, 42% have written a review for a product/item for them.

There is a palpable appetite from consumers for brands to open up a genuine two-way dialogue with them, and for
brands to engage and respond to proactive comments they willingly offer.

Eleven percent of respondents say that their favourite brand follows them back on social media; however, 24% like
this. Almost 1 in 4 would like to be asked to contribute ideas on how the brand could improve. Brands can empower
customers through co-creation innovation by allowing them to feel that they can have a tangible impact on their
favourite retailers.

The biggest gap between how brands are engaging and what consumers would like is in brands individually
rewarding and surprising through special gifts. Just 11% receive surprises/free gifts from their favourite retailer,
but almost half of the sample like/would like this. There is real opportunity for brands to tap into this latent demand
for pockets of spontaneous reward. Getting this right would seem to be the pinnacle of contemporary marketing,
the epitome of the principle of right message, right time, and right place.

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 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Chart 7 | Thinking about your favourite brand/shop/site, which of the following do they do to try to interact with
you? What do you like them doing?

Ask you to write reviews 16%

of items you have bought 42%

Ask you for feedback on their 19%

service [e.g short survey] 39%

37%
None of these
33%

Respond to reviews you have made about 24%

item/products you have bought from them 22%

25%
Rate you as a customer
21%

18%
Ask you to follow them on a social network
21%

Ask you to contribute ideas/suggestions 25%

on how they could improve
21%

Offer you incentives for recommending 32%

them to friends/family [e.g. discount/offers] 17%

Offer you to use a brand/shop/site community

(e.g. a group forum where you can talk about 22%
brand/products you like) 16%

Respond to posts you make on a social 21%

network [e.g like or comment or repost] 15%

24%
Follow you back on a social network
11%

47%
Send you surprises e.g. free gifts
11%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Would like them to do this They currently do this

What people are willing to receive from brands

When asked more generally about what they would like to receive from brands either before or after a purchase,
consumers show a willingness to receive tailored offers that are focused on them. This reinforces the need for brand
engagement to be more individualised and built on careful use of customer data.
• 68% are interested in receiving exclusive access to items/deals before buying a product
• 67% are interested in receiving time-sensitive discounts before buying a product
• 63% are interested in receiving offers tailored to what they had bought after a purchase
• 53% are interested in receiving recommendations tailored to what they like or have bought before
– rising to 68% among Gen Y (consumers born between 1980 - 2000)

Such appetite for tailored and targeted offers suggests brands can engage with customers most effectively when
they use purchase cycle or purchase history to position messaging and offers as uniquely relevant to customers.

Lastly loyalty rewards/schemes were what 77% of consumers across age and income breaks showed interest in
receiving after buying a product, of which 40% showed strong interest. A brand-consumer interaction that harbours a
palpable return for consumers will be well received due to their sense of entitlement to rewards.

17 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

The criteria for online and offline

As well as asking consumers about their preferred engagement, we also sought to understand what creates an engaging
shopping experience both online and in-store. Brands that can focus on optimising purchasing experiences will
ultimately create better customer experiences and ultimately stronger engagement. But how can brands achieve this?

When asked which factors make for a good experience online, consumers’ stated their preference for brands to focus
on their functional needs. Online these are prioritised as low prices, quality deals, convenience and efficiency of
processes. Perhaps unsurprisingly when shopping in-store being able to touch and feel the product is also important
to consumers, as well as the knowledge and friendliness of staff.

Through personalisation and careful use of customer data, brands can create more engaging shopping experiences
that focus on key needs: convenience, low prices and ease. Other data-driven ways of delivering best-practice
customer experience include highlighting the most relevant search results, alerts for price drops for products people
want, more precise delivery options, etc. Indeed many consumers, especially those in younger age groups, show keen
interest in highly personalised offers from brands:
• 72% are interested in receiving reminders about a delivery status after buying a product
• 62% are interested in receiving reminders of deals/offers I might be interested in based on what I have
bought from them before
• 53% are interested in using/continuing to use a price alert service that alerts when items they like reduce in price

It is also safe to assume that consumers value consistency across the online and offline/in-store experiences, including
how experiences are tailored to them individually. Marketers need to understand what the consumer values most in
each area but also must be able to provide a smooth and consistent experience across channels.
Chart 8 | Which of the following defines a good experience for you when shopping online?

Offering the lowest prices 38%

Quality of item/product 36%

Good offers/deals 35%

Convenient delivery options 29%

Easy 27%

Quick/fast 23%

Being able to find my desired item/product 22%

Quality of the website 15%

Easy to deal with issues 14%

Quality of the product images 10%

Being sent reminders/alerts of a delivery status 9%

Offering a variety of payment

8%
options free of charge

Fun/enjoyable 7%

Remembering my details (e.g. payment details) 6%

Relaxing 6%

Rewarding repeat purchases 5%

Offering chat/messenger service to

3%
allow me ask questions

Remembering what I like or have bought 2%

from them before (e.g. saved searches)

Other 1%

Personalised service - e.g tailored

recommendations, using my name 1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

18 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Chart 9 | Which of the following defines a good experience for you when shopping in-store?

Good offers/deals 41%

Being able to find my

desired item/product
37%

Offering the lowest prices 34%

By phone to touch/feel/
30%
check the item/product

Quick/fast 23%

Knowledgeable staff 23%

Friendly/welcoming/helpful staff 23%

Easy 19%

Easy to deal with issues 14%

Ability to check whether item is

in stock in other stores/online 11%

Relaxing 9%

Convenient delivery options

(e.g. buy in-store and deliver home) 9%

Fun/enjoyable 9%

Rewarding repeat purchases 8%

Offering a variety of payment

options free of charge
5%

Personalised service - e.g tailored

recommendations, using my name
3%

In store events/activities -
e.g. pop ups/demos 2%

Other 1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

19 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

3. New rules for customer engagement

In this final section, we bring together the core learnings from the findings and distil them into overarching themes
to help define the key routes to creating positive customer engagement. What brand engagement responses will
resonate most strongly with consumers, and how can brands innovate to meet these in the near future? We outline
four key principles of the findings and their implications for brands.

1. Relevancy over personal

Access to customer data is undoubtedly recalibrating the parameters of what is possible in terms of individualised
marketing. But it is crucial that brands apply personalisation strategies in ways that truly deliver relevancy for each
and every shopper.

Whether it is relevancy through optimising recommendations to be shown at the precise moment needed, tweaking
loyalty rewards to deliver benefits that are useful at an individual level (discounts for products they actually buy,
offers for places they will actually visit, discounts during times they are actually shopping, etc.) or through taking into
account wider context of people’s needs, brands that prioritise usefulness over closeness will have a better chance of
engaging consumers positively.

Messages that take into account a customer’s name, details and basic preference may help to create more friendly
communications, but it is the brand who can deliver a heightened personalisation experience - a useful discount at
the moment the customer most needs it; a reminder of the perfect gift to buy for a friend; an offer that chimes with
one’s current mood - that will create a warmer and stronger level of engagement.

Earlier data in the report detailed how consumers were more interested in receiving tailored offers. Further we see
significant interest in ever more precise communications from brands:
• 40% surveyed are interested in a service that reminded them about a friend or family member’s upcoming
birthday and gave relevant suggestions on what to buy them as a gift; this rises to two thirds of 25-34s
• Half of consumers surveyed agree that they would like it if recommendations they receive from brands/
shops or sites they use were better tailored to what they like or are interested in
• 54% of Gen Y (28% of the total sample) are interested in a service that detected how they were feeling and sent
them surprise offers/deals based on their mood/state (e.g. an offer/deal for a massage after doing a lot of
exercise)

2. Incentivising data sharing

Despite clear consumer interest in engaging with brands in a more personal way, achieving the right balance
between overly personal and extremely relevant is a fine one; brands will need to work carefully to optimise
individualised communications while remaining sensitive to consumers’ cautiousness when it comes to sharing
their personal data.

When consumers were asked what personal information they would share with companies for certain benefits, it was
clear that people were more likely to be willing to share more basic information types. This mirrors results shown in
the DMA/Future Foundation research, Data privacy: what the consumer really thinks, conducted in 2015.

However, the data reveals that consumers are most willing to share their data when there is a clear benefit to be
gained – such as lower prices, tailored deals or special offers. Further lower levels of willingness to share data do not
correspond to the higher levels of agreement and interest in tailored communications and offers that we have seen
elsewhere in the research and earlier in the report, which ultimately rely on consumers’ actually sharing their data
with the retailers they use.

Implicit in the contrasting data, is that there remains a gap in consumers’ understanding of how customer data can
be used to tailor and heightened personalisation, and what personalisation they desire from brands.

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Let’s take one example; loyalty rewards are something consumers highly desire, and yet loyalty rewards rely on
brands’ collecting data on customers’ purchase history. This potentially shows a lack of comprehension among
consumers of how websites store their past purchasing history.

It is evident that brands need to focus on clearly reassuring consumers of the direct benefits of data sharing, as well
as building up consumers’ awareness of how brands use customer data.

Data sharing needs to be both clearly incentivised and easily understood to encourage customers to take part.
This understanding is a clear trust issue and the industry needs to continue to seek ways to show the value
consumers can receive directly resulting from use of data - using a copywriter to craft clear permissions copy in
transparent language is one way to work towards achieving this.

When consumers are confident of the gains they can make concerns over how brands are using their data will likely soften.
Chart 10 | Which types of personal information would you be willing to share with brands/shops/sites for the
following reasons?

54%
I can get items/products for a lower price
17%

52%
I get better loyalty rewards
15%

51%
I get special offers/deals tailored to me
16%

I get free services/items/ 50%

products in exchange 14%

48%
It saves me time
12%

46%
I get improved service
16%

45%
I receive tailored recommendations
15%

I receive adverts that are of 37%

interest/relevance to me 9%

The brand/shop/site can predict when 36%

I might need to buy something 10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Email address My past purchasing history with the brand/shop/site

21 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

3. Build a reciprocal relationship

Consumers are seeking more of a dialogue with brands they like and expect more feedback from brands
they engage with.

The data shows that many consumers are open to giving brand reviews and feedback; 3 in 10 have given their
favourite brand feedback on their service, 29% have written a review of products from them; 3 in 10 are interested in
sending them suggestions of how they can improve.

It is also noteworthy that 4 in 10 consumers are willing to be rated by brands themselves - as a customer.

Alongside the willingness to proactively communicate with their favourite brands, it is evident that many consumers
expect brands to reward customers for their engagement - half believe consumers should be rewarded if they
recommend products to friends and family; just under half believe brands should respond to comments people make
about them on social networks.

With consumers ready to receive rewards for engagement and loyalty, how can retailers benefit from the consumer
appetite for feedback on their custom?
We already have seen two-way rating systems forming the business model of commercial sharing platforms such as
Uber, Lyft and Airbnb. Customers and suppliers are rated, with customers directly benefiting from getting a good
review – via rewards such as cheaper rates, better acceptance rate for future use of service, even special deals.

It is possible that established retail brands can begin to form a more reciprocal relationship with their customers to
foster the kind of engagement that encourages customers to act in their favour i.e. to stay loyal, stay engaged, and
promote brands outwardly. Reciprocity is welcomed, it is a function of transparency in the modern, data-driven world
and will be further encouraged and sought as consumers begin to see the impact of their involvement - better service,
more control over brands, better deals - all things we know consumers highly value.

By opening up a dialogue with customers and incentivising them to build connections through ratings and rewards,
brands can create compelling reasons for consumers to engage with them.

22 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Chart 11 | Thinking about your favourite brand/shop/site, which of the following have you done and which would
you be willing to do in future?

Given them feedback on their

31% 14% 28% 26%
service [e.g fill in a short survey]

Written a review for items

29% 13% 23% 36%
/products I buy from them

Recommended them to friends/family 21% 12% 33% 34%

to get an incentive [e.g. discount/offers]

Follow them on a social network 12% 10% 17% 61%

Sent them suggestions/ideas 11% 11% 30% 49%

of how they can improve

Used a brand/shop/site community

(e.g. a group forum where you can 8% 10% 18% 64%
talk about brand/products you like)

Responded to posts they 7% 10% 18% 65%

make on a social network

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

I have done this and am happy to do this again in the future

I have done this but am not interested in doing this in the future
I haven't done this but am interested in doing this in the future
I haven't done this and am not interested in doing this in the future

23 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

4. Humanise digital engagement

Convenience and good service are top reasons why consumers favour certain retailers, but how are brands
responding to the fast-changing parameters of these consumer demands?

While speed and efficiency are highly valued by consumers especially when shopping online, overly functional and
mechanised interactions risk creating purely functional connections with consumers, bereft of the service benefits
created by human empathy and intuition.

Enter digital technologies that are humanising digital engagement, helping to create more intuitive service on online
platforms and presenting brands with new ways to interact with customers.

Virtual personal assistants that can be asked questions or advice – such as Siri, Facebook’s M or Cortana, can
potentially begin to build a rapport with customers and take recommendations into a more relevant space – at the
point of browsing/buying.

Chat messenger platforms through which these assistants can operate encourage a casual, personal form of
engagement to naturally blossom between chat-bot/A.I. assistant and customer.

Elsewhere virtual technology can bring products alive in one’s home, and provide another digitally humanised way for
customers to engage with brands outside of a retail environment.

Understandably being a generation of digital natives younger consumers show keener appetite for more emerging
service interfaces such as A.I. assistants, and are more open to using chat interfaces to connect with brands. This said,
52% of consumers are interested in at least 1 of 4 virtual reality customer service innovations presented in the survey;
there is clearly a latent interest here.

While still in their infancy we posit that virtual innovation platforms are potentially going to transform how brands
can individually connect with customers at scale in the digital space while also improving core customer needs such
as convenience, efficiency and service. While the algorithms that power A.I. assistants currently will have limitations
in how accurately they can respond to individual requests, a combination of chat-bot powered assistants and human
customer service still indicates a much more individualised digital service experience is on the horizon.

In this context, brands must ensure new digital touchpoints are seamlessly connected to all other potential
touchpoints both online and offline to enable a consistent experience for the customer.

Chart 12 | In the future how interested would you be in using a service that could do any of the following in the future?

100%

90%

80%

70%

60%
50% 47%
50%

40% 47%

30% 36% 36%

36%
33%
20%
26%
29% 29% 23%
10%
12% 13% 12% 15%
6% 4%
0% 2%
Total Male Female 16-24 25-34 35-44 45-54 55-64 65+

Very interested in at least one virtual innovation

Quite interested in at least one virtual innovation

24 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

4. Concluding implications
To conclude, we highlight some of the key implications emerging from the research. What are the most promising
engagement strategies that will chime with what consumers look for, expect and desire from brands?

1. Brands that focus on satisfying the core customer needs relating to their product/service will in turn foster
positive engagement from customers, who favour brands that consistently deliver on their immediate needs. But
to continually satisfy, brands must commit to constantly optimise how their customers’ needs are met. Adapting
to changing demands of consumers for hard benefits in key areas such as promotions, service and convenience
will be crucial in maintaining functional engagement.

2. Beneath the need for brands to focus on core functional wants, consumers appreciate brands that connect with
them more responsively, that take stock of their feedback and seek to react to their opinions. Brands need to go
beyond being friendly and find ways to connect with consumer on a more human basis. Brands need to form
dialogues that allow consumers to feel they have a genuine impact.

3. Consumers have a strong appetite for recognition and reward for their custom. Brands that seek to reward
customers for their engagement can ultimately strengthen their bonds in the long term. When brands review and
reward customers positively, both parties are made to feel wanted and are incentivised to continue to engage.
Further when loyalty rewards are made to feel well earned and unique to each customer, bonds can potentially
grow even stronger between retailer and shopper.

4. Brands need to be clear about the benefits consumers gain from sharing their data. Personalisation of brand-to-
consumer communications needs to improve to become more contextually relevant to the individual, and tied
to consumers’ strong appetite for spontaneity and exclusivity. This strategy can help brands cut through noise of
recommendations. Brands already have the data to do this; it is now time for them to use it to its full potential.

5. Brands should not underestimate consumers’ expectations for tailored relevant communications and shopping
experiences. By incorporating more intuitive technologies – such as voice or A.I. assistants, or virtual reality - into
digital touchpoints brands can become ever more intuitive and relevant to customers. It is also increasingly
important these technologies are integrated with the aim to create a consistent data-driven brand experience
across all consumer touchpoints.

25 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

Methodology
This research was conducted in two parts: a qualitative survey and a quantitative survey.

Questions for both surveys were scripted in collaboration with DMA and the DMA Customer engagement committee.
The quantitative survey was designed with Future Foundation.

The qualitative research piece, designed by the DMA and the DMA Customer engagement committee, sought to
investigate the language consumers used when describing experiences with brands. In February 216, 34 questions
were asked to 1000 consumers, asked in 10 different three to four question surveys, using Toluna Quick surveys’ panel
of more than nine million UK representative consumers. Respondents were demographically representative based on
gender and age and were not told of the purpose of the research prior to consenting to take part in the study.

Data from this survey was analysed by the DMA Marketing and Insight team. The language consumers used to refer
to shopping experiences were then used to design the quantitative research piece.

For this research in May 2016, Future Foundation set interlocking nationally representative quotas on age and
gender and had independent quotas for region. This ensured the sample was representative of the UK population
and required minimal corrective weighting. Participants were naïve to the purpose of the questionnaire prior
to consenting to participate. One thousand UK-representative respondents were contacted via Research Now’s
proprietary panel. Research Now is an independent single source for permission-based data collection across the
globe. Their UK panel currently has more than 320,000 active panellists.

The analysis of the data and the loyalty segmentation was conducted in-house by the quantitative analysis team of
Future Foundation. Unless referenced, all data included in this report is taken from this survey.

The report was compiled in collaboration by Future Foundation, DMA, the DMA Customer engagement committee,
and representatives from Relay42, Organic agency, and Acxiom.

The report was art-worked by the in-house DMA design team and hosted on the DMA website www.dma.org.uk.

26 COPYRIGHT: THE DMA (UK) LTD 2016

 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

About the DMA

A DMA membership will grow your business. Our network of more than 1,000 UK companies is privy to research, free
legal advice, political lobbying and industry guidance. Our members connect at regular events that inspire creativity,
innovation, responsible marketing and more. Most of them are free.

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knowledge, together, we’ll make it vibrant.

Published by The Direct Marketing Association (UK) Ltd Copyright © Direct Marketing Association. All rights reserved.

Copyright and disclaimer

Talking the consumer’s language: retail is published by The Direct Marketing Association (UK) Ltd Copyright © Direct
Marketing Association. All rights reserved. No part of this publication may be reproduced, copied or transmitted
in any form or by any means, or stored in a retrieval system of any nature, without the prior permission of the DMA
(UK) Ltd except as permitted by the provisions of the Copyright, Designs and Patents Act 1988 and related legislation.
Application for permission to reproduce all or part of the Copyright material shall be made to the DMA (UK) Ltd, DMA
House, 70 Margaret Street, London, W1W 8SS.

Although the greatest care has been taken in the preparation and compilation of Talking the consumer’s language:
retail, no liability or responsibility of any kind (to extent permitted by law), including responsibility for negligence is
accepted by the DMA, its servants or agents. All information gathered is believed correct at June 2016.
All corrections should be sent to the DMA for future editions.

www.dma.org.uk

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 TALKING THE CONSUMER’S LANGUAGE: RETAIL 2016

About our sponsors/partners

Campaign sponsors

Marketing has never been so complex. Innovation has produced an explosion of data, channels, devices, and
applications. Acxiom provides the data foundation to make everything in your marketing stack work together
better. We make it safe and easy to activate, validate, enhance, and unify data, so you can deliver relevant
messages at scale and tie everything back to real results. For more than 40 years, Acxiom has been a leader in
harnessing the powerful potential of data to strengthen connections between people, businesses and their
partners in privacy compliant ways.
www.acxiom.co.uk

Organic is a performance marketing agency and strategic consultancy based in Southernhay in central Exeter.
Executive Director James Moffat founded Organic in 2006, and has been helping organisations on the path towards
digital transformation ever since.

The company has grown to include over 30 marketing professionals across their offices in Exeter and London,
and now works with major national and international brands including Samsung, Direct Line Group, Nectar and
The Body Shop.
www.theorganicagency.com

Our enterprise Data Management Platform (DMP) empowers brands to turn their marketing into human dialogue. By
unifying every consumer channel quickly, marketers can plug and play, personalising every piece of outreach for the
right message, to the right person, in the right context.

Born in 2010 in Amsterdam, we’ve quickly grown into a marketing hub for world-class brands, helping the likes of
BMW, KLM, Air France, Thomas Cook, ING and, of course, TNT to make their vision of one-to-one marketing a reality -
and deliver real results.
www.relay42.com

Research partner

Future Foundation is a global trends agency based in London, New York and Stockholm.

We transform strategy, marketing, research, service, innovation, customer analysis and training to strengthen
businesses, not only to withstand the changing world around them but thrive in it.

We pride ourselves on highlighting the real truth behind the changes happening and not simply trends for trends’
sake. Whether it is using our team, proprietary tools or global research – we create a genuine partnership with your
business, empowering both individuals and companies to move forward with confidence.

We pride ourselves on not only having the best product and people but also a unique ability to understand a client’s
needs before they do and whilst every client is different; ultimately our job is to deliver actionable consumer insight.
www.futurefoundation.net

28 COPYRIGHT: THE DMA (UK) LTD 2016