Valentine’s Day is all about connection, but new research from SAP Emarsys shows that most Australian consumers aren’t feeling the love from the brands they support. A staggering 83% say they feel undervalued, with many questioning their loyalty to brands that fail to show they care.
The Customer Loyalty Index, based on insights from over 2,000 Australian consumers, reveals what keeps customers coming back: trust in a brand’s reputation (45%), consistency (27%), and iconic status (25%). Yet, only 17% say they feel “truly valued,” exposing a major disconnect in how brands engage their audience.
But it’s not too late to turn things around. Even with Valentine’s Day just days away, brands can take steps to create meaningful connections that last far beyond the holiday.
Personalisation is key to loyalty
“Value looks different to every customer,” says Meghann York, Global Head of Product Marketing at SAP. “SAP Emarsys helps brands understand what matters most—whether it’s a personalised thank-you, exclusive access to products, or real-time recommendations. It’s about showing customers they’re more than just a transaction.”
Aussie-born retailer City Beach is setting the standard for personalised, memorable customer experiences. Using SAP Emarsys’ AI-powered customer engagement platform, City Beach crafts seamless, relevant, and human interactions—both online and in-store.
For Valentine’s Day, the brand is rewarding loyal customers with curated offers, tailored gift ideas, and exclusive content. These thoughtful touches, powered by AI insights, ensure every interaction feels meaningful—even on a tight timeline. The results speak for themselves: City Beach has seen a 100% revenue increase from key channels thanks to this personalised approach.
Why it matters
Retaining customers is always easier—and cheaper—than acquiring new ones. That’s why innovative brands like City Beach are using AI to deliver high-impact, personalised experiences that drive repeat purchases and advocacy.
From custom email campaigns to loyalty apps and mobile wallets that connect in-store and online promotions, City Beach is proving that personalisation fuels brand loyalty. SAP Emarsys’ research backs this up: 58% of Australians are open to receiving messages from brands—especially when they’re personalised with relevant recommendations.
With Valentine’s Day around the corner, brands still have time to make a lasting impression. A small gesture or a strategic campaign can turn a seasonal moment into an enduring relationship. Brands that overlook these key opportunities risk losing out to those who make customer connection a priority.
The erosion of trust
One of the most significant contributors to this feeling of being unloved is a lack of trust. High-profile data breaches, instances of misleading advertising, and the perception of price gouging create a climate of skepticism. Consumers are increasingly wary of brands that appear to prioritize profit over people. This erosion of trust is a significant hurdle for brands to overcome, but it’s not insurmountable. Studies have consistently shown a decline in consumer trust towards brands, particularly in relation to data privacy and transparency (e.g., reports from the ACCC, consumer advocacy groups like CHOICE, and global surveys by organizations like Edelman).
Building bridges
Transparency and honesty are paramount. Brands must be open about their data collection practices, pricing structures, and any potential issues. Proactive communication and a willingness to acknowledge and address shortcomings can go a long way in rebuilding trust. This includes clearly explaining how customer data is used and ensuring that privacy is protected. Experts in customer experience emphasize the importance of transparency and proactive communication in building trust (e.g., see articles and reports on customer experience best practices from organizations like Forrester and Gartner).
Beyond trust, poor customer service experiences can leave a lasting negative impression. Long wait times, unhelpful responses, and the feeling of being passed from one representative to another contribute to a sense of frustration and being undervalued. In today’s competitive landscape, excellent customer service is no longer a luxury; it’s a necessity. Research indicates that negative customer service experiences are a major driver of customer churn (e.g., studies on customer satisfaction and loyalty by Qualtrics and similar research firms).
Investing in well-trained customer service teams, providing support across multiple channels, and empowering representatives to resolve issues efficiently are crucial steps. This means equipping staff with the knowledge and authority to handle customer inquiries effectively and empathetically. Furthermore, personalization is key. Generic marketing messages and a one-size-fits-all approach can make customers feel like just another number. Leveraging data to understand customer preferences and tailor marketing messages and offers accordingly demonstrates that the brand values the individual. The benefits of personalized marketing are well-documented, with studies showing increased engagement and conversion rates (e.g., marketing reports from HubSpot, Marketo, and similar platforms).
Fostering Emotional Connections
The desire for genuine connection is a fundamental human need, and consumers are increasingly seeking brands that resonate with them on an emotional level. Brands that focus solely on transactional relationships, prioritizing sales over genuine engagement, often miss the mark. Building emotional connections requires more than just clever marketing campaigns. It involves creating meaningful interactions and experiences that align with customer values and aspirations. This might involve supporting social causes, fostering online communities, or simply demonstrating empathy and understanding in customer interactions.
Marketing thought leaders increasingly emphasize the importance of emotional connection in building brand loyalty (e.g., books and articles on brand storytelling and emotional marketing). Finally, showing appreciation for loyal customers is essential. Recognizing and rewarding their patronage with exclusive offers, personalized messages, and other gestures of appreciation can foster a sense of loyalty and strengthen the customer-brand relationship. Customer loyalty programs and personalized rewards are common strategies for demonstrating appreciation and fostering long-term relationships (e.g., case studies on loyalty programs and customer retention strategies).
Actively soliciting customer feedback and demonstrating a willingness to act on it is another powerful way to show that their opinions are valued. By genuinely listening to their customers and using their feedback to improve products, services, and the overall customer experience, brands can create a virtuous cycle of engagement and loyalty. The feeling of being unloved among Australian consumers is a complex issue with multiple contributing factors. However, by prioritizing transparency, investing in excellent customer service, personalizing the customer experience, building emotional connections, and showing appreciation, brands can rebuild trust, foster loyalty, and create a stronger sense of connection with their customers. In an increasingly competitive market, these efforts are not just good practice; they are essential for long-term success.
Want to know more? Explore the full Customer Loyalty Index for more insights at https://emarsys.com/learn/white-papers/customer-loyalty-index-2024-australia/
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