More than half of consumers prefer to purchase products from retailers they are loyal to with product quality and value among the top reasons for shoppers to become loyal to a brand in the first place.
According to a survey among 1,000 consumers carried out by Yes Marketing, price was the second most important criteria for shoppers to develop retail loyalty (35%).
Although pricing and quality may be difficult to adjust for some brands by incorporating clear labels of their item prices across their mobile websites, social media posts and push notifications, prospective customers may be easier to reach.
Although free shipping performed well among new customers, it was not a good indicator for long-term loyalty. Just 3% of shoppers ranked free or faster shipping as a driver for loyalty. However, 40% admit that it is a top convenience factor they consider before purchasing from a new retailer.
“The seamless and personalised consumer experience, which is a critical component of loyalty, has become table stakes,” said Jim Sturm, president of Yes Marketing. “It takes so much more to deliver on the different expectations customers have for retailers at each stage of their journey. Smart brands must differentiate between effective acquisition tactics and effective loyalty strategies. This distinction can help brands increase lifetime customer value and create truly successful lifecycle programs.”
For retailers looking to adopt a reward-based system, cash tops the chart with 39% of consumers preferring cash incentives, followed by early access to products (23%) and exclusive promotions (18%).
“With the continuous evolution of the retail sector, retailers must build strong customer relationships to create lifetime loyalty and drive revenue,” said Michael Iaccarino, CEO and chairman of Infogroup, parent company of Yes Marketing. “Given the significant impact customer loyalty has on business results, retailers need to find a service and technology partner who can enhance and execute their marketing strategies to adapt to changing consumer expectations.”
But it appears retailers are performing well when it comes to rewards with 73% of consumers feeling adequately rewarded for their loyalty.
Among the least influential drivers of loyalty were exciting marketing communications, convenient return options and social responsibility (1%).
However, marketing factors which did positively influence consumer loyalty include clear and relevant brand messaging, trustworthy messaging and customer reviews.