Customers That Are Emotionally Connected to a Brand Have a Higher Lifetime Value Than Satisfied Customers
Motista – a pioneer in the development of Predictive Emotional Intelligence solutions announced the results of their intensive study. The study revolves around consumer behavior, how consumers spend, customer’s value in their lifecycle & their capacity to recommend brands within their network. The report concludes that customers who are emotionally connected to brands have a 306% higher lifetime value than customers that are merely satisfied.
Motista gathered data from 100 retailers from myriad industries serving a variety of products amounting to 100,000 customers over a period of two years (2016-2018). The detailed report is a strong indicator of the power of emotional consumer connect with a brand.
Key takeaways from the report are as follows:
- Emotionally connected customers have a 306% higher lifetime value(5.1 years) versus. satisfied customers (3.4 years)
- Emotionally connected customers rate brands higher (71%) than satisfied customers (45%)
Mentioned below is the industry wise segregation of consumer performance:
|Industry||Satisfied Customers||Emotionally connected||Emotionally connected spike|
|Discount Big Box Stores||$760||$1,192||1.6x|
Break up of annual spend & average lifetime is as mentioned below:
|With Preferred Brand||Satisfied Customers||Emotionally connected||Emotionally connected spike|
|Tenure||3.4 years||5.1 years||1.5x|
Michael Mathias, president of Motista explained, “while most marketers agree that activating emotional connection is important, it remains a largely untapped opportunity for driving growth. But this study shows emotional connection can be identified, measured, and quantified, and used to drive customer acquisition, increase the share of wallet, achieve higher lifetime value, build stronger loyalty, and influence brand advocacy.”
In order to access the entire report and gain deeper insights, click on the link.
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