In this op-ed, Ayaan Mohamud, RVP Marketing APJ, delves into the stakes of loyalty and what it means for brands in today’s overcrowded market, offering some practical tips and case studies.
Brand loyalty is under siege. As economic pressures bite, consumers are switching brands at record rates, with Forrester predicting a staggering 25 per cent drop in loyalty this year. Yet, in a surprising twist, loyalty programs are thriving—fuelled by value-added benefits that resonate more than ever.
This paradox signals a profound shift: loyalty is no longer about blind allegiance. It’s about value on the customer’s terms—delivering trust, relevance, and genuine connection in a world where scepticism runs high and choices are endless.
Partnerships have emerged as a powerful tool to cut through the noise and rebuild loyalty in authentic ways. Modern partnerships forge deeper ties between brand and consumer, creating shared experiences, building community and delivering real value that keeps customers coming back.
Value through trust
Trust is the foundation of any customer relationship, yet it has been eroded over the last decade by declining confidence in institutions, media, and brands. Media fragmentation and the proliferation of online platforms have amplified scepticism, leaving consumers unsure where to turn for credible information. Only three per cent of Australians now cite traditional advertising as a trusted source, while 58 per cent rely on recommendations from people they know.
Overwhelmed by conflicting information, consumers increasingly turn to their personal networks and trusted relationships for guidance. This shift has transformed how brands communicate, driving them to collaborate with influencers, creators, and like-minded organisations to build credibility through shared values.
For example, when July Luggage entered the U.S. market in 2021, the brand partnered with trusted media outlets like Cosmopolitan and Vogue. These collaborations provided credible endorsements that fast-tracked trust in the brand, helping it gain traction as a relatively unknown international player. This approach also paid dividends for Australian gumboot brand, Merry People. Their content commerce partnership with the New York Times helped establish the brand in the US, with the article continuing to drive weekly sales years later!
Value through community
People crave connection and a sense of belonging, which is why savvy brands are increasingly focused on fostering community-building rather than just selling products. By partnering with organisations, influencers, and publishers that share their values, brands can form meaningful relationships that go beyond transactions, fostering genuine emotional connections with their audiences.
For example, Frank Green partnered with lifestyle publisher Urban List to curate a sustainable Frank Green Mother’s Day gift guide, embedding its products into broader conversations about sustainable living. Similarly, Sephora Squad’s initiative of engaging diverse beauty influencers has allowed the brand to build an inclusive community where customers feel part of something larger than themselves. These efforts demonstrate how partnerships can go beyond product promotion, creating emotional connections that drive long-term loyalty.
Value through customer advocacy
Happy customers are among a brand’s most effective marketers, as their genuine recommendations resonate far more with potential buyers than any advertising. By encouraging customers to share their experiences, brands can amplify authentic voices that lend credibility to their message. Referral programs, particularly those offering rewards to both referrers and referees, are a proven way to turn loyal customers into revenue-driving advocates who recommend brands within their networks.
This community-led marketing approach is working for Brand Collective who are currently experimenting with a 15 per cent referral program. Customers get a discount for every referral, and so do their friends and it’s already delivering results—they are seeing customers return more frequently and bringing new people with them.
This evolution in advocacy reflects a broader shift in the marketing funnel. Advocacy is no longer an endpoint—it’s now a dynamic loop feeding back into discovery, creating continuous engagement and amplifying growth. By transforming satisfied customers into advocates, brands can build a self-sustaining growth engine that balances acquisition with retention.
Value on the customer’s terms
In an era defined by economic uncertainty and overwhelming choice, value means more than just competitive pricing. It’s about offering trust, fostering community, and empowering advocacy in ways that feel meaningful to customers.
Partnerships can play a critical role in this shift, helping brands to connect with what matters most to their audience. By focusing on shared goals, personalised experiences, and credible endorsements, marketers can foster deeper loyalty and transform customers into long-term, revenue-driving advocates.
Ultimately, delivering value on the customer’s terms isn’t just a way to navigate tough economic times—it’s a blueprint for staying relevant and competitive in an increasingly crowded marketplace.
