Just how loyal are customers to retailers?
Webloyalty has partnered with Conlumino to create our latest report, The Unfaithful Consumer. The Unfaithful Consumer report investigates consumer buying behaviours and changing shopping habits at a time of unprecedented change for retailers.
We look at just how loyal customers are to the retailers they shop with. Are customers really brand loyal? Or are they just looking to get the best deal?
Watch our video to see what shoppers are saying about brand loyalty
Top tips for retailers from the Unfaithful Consumer report
1. Experience has become more important than securing loyalty
Destinations, both online and physical, should be about experience, excitement and inspiration. Physical locations should offer a leisure and food service mix that keeps consumers coming through the doors and increases dwell times, while online can look to creation of online communities to drive loyalty and growth.
2. Retailers can use technology to reach more consumers
The rise of truly multichannel shopping has meant that the reach of retailers has been greatly extended. It has also probably ensured the future of the physical store thanks to the rise of click & collect,
providing bricks and mortar retailers with a key point of differentiation.
3. Multiple touchpoints should be managed efficiently
Managing a multitude of touch-points has the potential to be expensive, especially if they merely redistribute existing sales rather than generate incremental revenue. Retailers therefore need to ensure that some of the new touch-points help to create savings and also to streamline back-end operations.
Number of different channels and touchpoints used while shopping for clothing in 2005 versus 2015
4. Physical destinations are not dead, they are drivers of loyalty
Keeping retail destinations relevant and ensuring high footfall in the multichannel age will be a big challenge. It will require investment, research and clever design. The challenge of meeting these demands may be a big one, but the rewards could be even bigger.
5. Retailers can think beyond retail to grow customer loyalty
While the growth of spending on other things like eating out, leisure, etc. is
potentially a threat to retailers, it is also an opportunity. Retailers can diversify into suitable non-traditional retail areas in order to supplement growth and bolster both loyalty and sales.
6. Value for money is key
With a greater focus on price, all retailers need to rethink the value equation and how this can be used to drive loyalty. A sensible response is to widen range architectures. Retailers at the value end have to boast more than just low price to drive demand, looking to emphasise quality credentials and launch more premium sub-brands. Conversely, those sitting at the more mid-premium end are being forced to respond through keener pricing, especially on more basic items.
Percentage of consumers that agree with these statements
7. Marketing budgets need to shift
While there may not be any significant change to retailers’ overall level of marketing spend, retailers should be looking to implement a gradual shift in share of spend going towards digital media.
8. Investment in service
With word of mouth and personal experience both being key influencers in
consumer decision making, it is clear that retailers need to invest more in service to drive loyalty or stave off disloyalty.