Supermarkets and technology brands were the big marketing winners in 2016

New consumer study reveals the winners and losers across UK industries.

Fashion & Beauty, along with Banks & Financial Services companies, scored the lowest. Retailers that embrace a multi-channel approach, along with those that provide strong loyalty programmes, are helping to drive this marketing elite.

London, UK 19 January 2017 – A recent UK study into consumer attitudes and their perceptions of marketing campaigns across the UK’s biggest industries has revealed the biggest winners and losers of 2016.

Supermarkets and Technology companies both individually scored big in the league table. Eighty per cent (80%) of Brits believed Supermarkets’ marketing to be effective and encourage purchase, and 79% for Technology brands.

The study, commissioned by 3radical, also showed that Fashion & Beauty brands, along with Banks & Financial Services companies, produced the most uninspiring efforts according to the survey of UK consumers. Half (50%) of UK consumers cited Banks & Finance as producing the most ineffective marketing, followed closely by Fashion & Beauty at 38%.

It’s been recently reported that the UK supermarkets, for the most part, had much stronger than expected final financial quarter of the year in 2016 and it seems that their marketing campaigns were big winners too. Also supporting these latest findings are the reports that multi-channel retailers are seeing the greatest success. Marks & Spencer now credits 30% of its online traffic to its mobile phone app, and while 62% of its online sales are now picked up in stores.

The same study by 3radical has also shown that loyalty schemes have been one of the huge marketing successes of British commerce in the last decade. In fact, 93% of Brits have at some point signed up to be a member of a loyalty programme. Alongside this, where they find a scheme they like, three quarters of respondents (75%) reported being an active member for more than 12 months.

However, many schemes are not as actively used as brands would like. Despite almost a third of all UK consumers having five or more loyalty cards, almost two-thirds of those surveyed (61%) will stick to using only one or two of their favourite schemes on a regular basis.

Three quarters (76%) of respondents said that loyalty programmes would be more attractive to them if they provided individuals with more relevant rewards based on their purchase history. Over half (59%) said that including the ability for them to earn rewards for activities leading up to a purchase, such as researching the brands products, and providing more information to help the brand be more relevant, would make the scheme more attractive.

David Eldridge, CEO at 3radical, commented: “Whilst mobile and multi-channel approaches have been part of the sales priorities for many years now, 2016 really saw this forming an integral part of consumer marketing in a huge way. The brands that embrace a multi-layered approach – that combines mobile, loyalty, interactivity and creativity – are emerging as clear winners in consumers’ eyes.”

He continued: “We’ve found that loyalty schemes work extremely well in principal. However, they must they evolve to become a richer, more individual customer experience across the entire customer journey if they are to continue attracting and retaining the attention of their customers. The most successful programmes are those that help to develop more of an emotional connection with the brand rather than a transactional one, by creating interesting ways to interact across the customer journey and therefore offering plenty of ways to re-engage with them multiple times.”

Emily Collins, Senior Analyst at Forrester, wrote¹: “Traditional approaches to loyalty don’t cut it anymore… It should be treated as one of several tools — alongside customer experience, brand and customer service — that helps foster customer loyalty wherever customers interact. Truly great loyalty strategies create a meaningful exchange of value between the company and the customer. This exchange encourages customers to share all kinds of profile, preference and behavioral data.”

“The insights gleaned from loyalty data — encompassing transactions, preferences and profiles, help identify the “right” kind of new customer to attract and the types of marketing initiatives that retain existing customers.”

¹”http://blogs.forrester.com/emily_collins/15-02-20-are_you_a_loyalty_company

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For more information please contact:

Sophie Brown
sophiebcomms@gmail.com
07919 098 893

*About the 3radical consumer research

3radical conducted research with over 500 UK consumers in the month of July to establish their attitudes and opinions on consumer marketing. Full research available on request.