If you believe your customers are cheating on you with other retail brands, it is time to focus your attention on strategies that can create true customer devotion. Part two of our customer devotion series focuses on the levers you can pull to achieve a loyal customer base.
2. Don’t get dumpedby your customers:
Creating true devotion by learningfrom real-life relationships
Shoppers say they don’t
get anything in return
for personal data
“What’s in it for me?”:
Three quarters of UK shoppers
say they get nothing in return
for sharing their personal data
with brands
For love and loyalty:
6 signs your customers may
be cheating on you brands
THE OBJECTIVE
We were intrigued to
discover how customer’s
devotion to retailers is
influenced by loyalty
strategies.
THE METHODOLOGY
To discover more about
devotion we conducted
a survey of 7,291 retail
consumers across
9 countries.
THE HEADLINES
A QUICK RECAP: PART ONE...
8%
ONLY
OF UK
CUSTOMERS
AREDEVOTED
TO THEIR
PREFERRED
RETAILERS
Devoted consumers are your most
loyal customers. They engage with
your communications, act as brand
advocates and will always choose
you over a competitor.
GLOBALLY, CUSTOMER
EXPECTATIONS ARE CHANGING
ABOUT THE RESEARCH: Research undertaken by Survey Sampling International across 7921 consumers across 9 countries, on behalf of ICLP, July 2016. Random error on a sample
of this size is +/- 2.2% at the 95% confidence level. If you would like us to present this work to you, then please contact us.
3. THE LEVERS OF DEVOTION
Here’s the final four of the Seven Core Relationship Criteria
RECOGNITION
RESPECT
TRUST
COMMUNICATION
REW
ARDS
RECIPROCITY
RELIABILITY
4. In a relationship between brands and customers, consistency
and quality is key. When a situation goes wrong, having the
right attitude is crucial to repairing that relationship and
ensuring that your customers don’t go elsewhere.
RELIABILITY:
CAN YOUR CUSTOMERS
RELY ON YOU?
67%
54%
66%
of customers feel that fashion
retailers treat them like every
other customer – they do not
feel valued by the brand
of customers do not feel that
they receive consistent service
from general retailers
of customers feel they can rely
on department stores to take
care of an issue compared to
53% of general retailers, 44%
of fashion retailers and 42% of
supermarkets.
5. • 90% brand retention rate
• Known for successful and reliable products; “If we can’t make something
that is better, we don’t do it”
• Accessible online self-service support and Genius bars’ within stores
that customers can rely on to solve technology issues
RELIABILITY: HOW APPLE OVERCOMES
THE UNRELIABILTY OF TECHNOLOGY TO
BUILD A BLINDLY LOYAL CUSTOMER BASE
6. • Success depends on listening to and understanding the
customer, enabling retailers to be innovative in response to
market trends
• Empower employees to achieve excellence so that brand
promises are met on the front line
• Those companies that create emotional connections with
their customers, who are are trustworthy and transparent,
and can sell a brand that people believe in, will be successful
in building a loyal following of customers
RELIABILITY:
RETAILER INSIGHT
7. One of the greatest challenges is sending relevant and tailored
communications to customers without bombarding them
with too many messages. Customers want to receive genuine
communications that keep them informed and aware of the
latest trends, offers and brand information.
COMMUNICATION:
ARE YOUR CUSTOMERS
LISTENING TO YOU?
64%
53%
70%
of general retailers
do not send their
customers tailored
information or content
that fits their interests
of fashion retailers fail
to keep their customers
up to date with the
latest trends
of department store
customers feel that
brands do not really
listen to their feedback
8. • Segmentation based on customers’ transactional and behavioural data
enables highly dynamic content
• By looking at last hotel stay data, preferred booking channel, previous
open/click rates, and overall brand engagement, content can then suggest
the next best action
• Communications trigger purchase behaviour such as alerts if loyalty
points are due to expire, reactivation if there has been little brand
engagement and curated travel content to encourage another stay
COMMUNICATION:
TAILOR YOUR MESSAGE LIKE
CARLSON REZIDOR HOTELS
9. • The best brands are engaging with their customers
through customer-focused, personalised communications
• They are using segmentation and customer profiling
techniques to tailor their messaging and build deeper
relationships
• By engaging with your customers, retailers can foster
a sense of belonging which leads to positive referrals and
a loyal community
COMMUNICATION:
RETAILER INSIGHT
10. Retailers must not confuse loyalty with rewards. Rewards are
one tool used to create loyalty, however alone, will not denote
customer advocacy. The best loyalty programmes go beyond
rewards to understanding the customer’s lifestyle and creating
an experience that puts brands top of mind over competitors.
REWARDS: ARE YOU
STILL REWARDING YOUR
CUSTOMER WITH POINTS?
70%
71%
71%
of customers do not receive
special and exclusive offers
from fashion retailers
of department store
customers do not feel that
their loyalty is rewarded
(compared to 71% of
supermarket customers,
75% of retail fashion
customers and 81% of
general retailer customers)
of customers do not receive
tailored rewards from
general retailers
- THIS IS A MISSED
OPPORTUNITY!!!
11. • 24.5 million active members
• 26% year on year growth
• Ultamate Rewards programme offers points for each dollar spent and
bonus points for engaging with the brand via social media, the mobile app,
email and credit card
• Birthday and membership anniversary recognition
• Members are tiered, and can redeem points on over 20,000 products
• Exclusive gifts, special invites and extended product ranges on offer
REWARDS: 90% OF ULTA BEAUTY’S
SALES COME FROM ITS LOYALTY
PROGRAMME MEMBERS
12. • Savvy and strategic retailers are looking beyond reward
programmes to delight and retain loyal customers
• Brands are looking to solve customer’s problems and soothe
pain points, which will require more than a discount coupon or
special offer
• Rewards should be consistent across all channels, based on
customer tiers and on the brand’s objectives
REWARDS:
RETAILER INSIGHT
13. 1 in 2 customers expect to receive something in return for
sharing their information. Brands that are actively engaging
with their customers need to reward good customer
behaviour. As customers have higher expectations for brands,
it is time for brands to meet, or better yet to exceed those
rising expectations.
RECIPROCITY:
DO YOU HAVE A RECIPROCAL
RELATIONSHIP WITH
YOUR CUSTOMERS?
33%
25%
13%
ONLY…
of shoppers feel
appreciated as a regular
customers by fashion
retailers
of customers feel
they get something
in return for sharing
their personal data
with department store
retailers
of customers receive
responses to their
social media posts or
direct messages by
supermarkets
14. • Online campaign ‘As Seen on Me’ links customer generated visuals
to the e-commerce platform so customers can discover the latest
fashion trends
• Provides customers with a human and rich media experience,
creating a sense of community
RECIPROCITY:
ASOS CURATES CONVERSATIONS
TO INSPIRE CUSTOMER ADVOCACY
15. • Retailers have to ensure they are telling a valuable and
engaging story about their brand that customers want
to hear more about
• It is time to regard social media as customer service
channels to respond quickly and authentically to
customer concerns
RECIPROCITY:
RETAILER INSIGHT
16. TOP WAYS TO
DRIVE DEVOTION
of devoted customers
would recommend a
retailer to others
of UK customers would
buy more if they were
better rewarded
would buy more if their
products were more
consistent and reliable
would buy more if
retailers recognised their
customer’s needs and
requirements better
would buy more if
retailers treated them
with more respect
would buy more if they
trusted the brand more
would buy more if brands
communicated with
them better
91%
54%
51%
75%
51%
67%
63%
17. PUTTING CUSTOMERS
BACK AT THE HEART
OF RETAIL
To truly engage a customer with your
brand, retailers need to think beyond
points and discounts to experiences
which will not be forgotten when the
customer walks out of the store.
Brands need to show their customers
they are valued and recognised with
personal, relevant offers, and rewards
that are designed to both surprise
and delight.
Devoted customers are the most willing
group of consumers to share personal
information, opinions and desires with
their favourite brands, and are least
likely to stray to competitors.
Loyal customers shop more frequently,
spend more and are better advocates
for their preferred brands.
