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Brand spam's silent toll,
Quality trumps quantity,
Less, in fact, is more.
Brand spamming: the silent killer of customer loyalty according to HubSpot research
New research by HubSpot, conducted by YouGov, has revealed that 46% of consumers believe brand spamming with irrelevant marketing communication weakens their relationship with the brand.
The issue of brand spamming is not just a theoretical problem. Kmart was recently fined $1.3 million for sending unwanted emails to customers, and Commonwealth Bank was hit with a record $3.5 million fine for sending spam.
The report also found 36% would switch off entirely and take their business elsewhere. The findings are part of Australia’s State of Customer Connection Report.
The study also found that 32% of consumers perceive some brands as having low competency and showing a lack of interest in improving their service. This perception is not without consequences. Half (51%) of surveyed business leaders felt the impact of unmet customer expectations in the last 12 months.
Kat Warboys, Marketing Director of APAC at HubSpot, emphasised the importance of quality over quantity in communications. "The bottom line is that effective connection is driven by quality communications, not quantity. The data suggests that brands aren’t routinely assessing their connection data and using this insight to inform their customer touch points. And it’s causing irreparable damage as consumers disassociate with the content," she said.
Warboys also highlighted the importance of using data to understand customer behaviour. "Increasing unsubscription rates and decreased engagement metrics are important symptoms of poor customer connection, for example, social shares, email opens and conversion rates", she said.
"The first step is to look at the data and what it’s telling you, while simultaneously reviewing how your brand is behaving across the business and its channels," she added.
The research also revealed that 45% of decision-makers cite connection issues as one of the three biggest challenges to their organisation. In response to this, Warboys suggested that technology, specifically AI, can help businesses work smarter and build deeper connections with customers.
"From our research, we know that declining customer spending and loyalty is keeping business leaders up at night. The good news is that technology is here to help businesses work smarter, not harder," she said.
The findings of this research underscore the importance of quality communication and customer connection in maintaining brand loyalty. As Warboys succinctly put it, 'When backed up by personalisation and targeting, there’s no doubt that less is more.'