A sizeable 92% of consumers in the UK would be willing to ‘cheat’ on their favourite retailer, according to a study from loyalty marketing agency ICLP.
ICLP worked with Prof Ron Rogge from the University of Rochester, who is more accustomed to studying relationships between humans, to examine the loyalty that exists between retailers and shoppers. They compared the relationship between the consumer and the supermarket in terms of human bonds, measuring the levels of ‘intimacy, passion and commitment’ that people felt towards their favourite retail chain.
They are the ‘three key components of a relationship’, the researchers said. The three attributes are borne out in a consumer’s ‘devotion’ to their favourite retail brand, but the study found that just 8% of UK shoppers felt devoted to their favourite retailer.
The more devoted a consumer is, the more likely they are to recommend a brand to family or friends. This is a major indicator of how valuable a devoted customer base is for word-of-mouth, compared with other types of customer relationships. Out of the other five relationship groups, levels of advocacy vary significantly. The closer the shopper’s affinity with a brand, the more likely they are to recommend the retailer.
What can retailers do to create devoted customers?
With only 8% of consumers currently falling into the ‘devoted’ consumer group, retailers need to find ways to drive this important relationship across their customer base. The study found that consumer interest in loyalty programmes remains high in terms of encouraging spend, as 75% of shoppers stated they would be encouraged to shop more with a brand if it had a loyalty programme. The findings also suggest that loyalty goes significantly deeper than traditional points-based reward programmes.
To drive brand devotion, retailers should look to:
As with all relationships, the researchers found that better communication could help to improve the bond between retailers and shoppers.
Prof Ron Rogge commented: “ICLP’s recent study represents groundbreaking work in understanding the key components of brand loyalty. Our analyses suggested that the same seven basic types of relationships emerged for both brand and close relationships. In fact, a majority of respondents approached their relationships with favourite brands in a very similar manner to how they approached their close relationships. Therefore, developing a strong and devoted relationship with a brand might not be so different from developing a strong and caring bond with another person, suggesting that people might buy with their hearts. This is exciting work, as it not only allows us to better understand and track the various types of brand loyalty, but it will also provide retailers with critical insights into targeting the needs and desires of specific classes of consumers in order to promote greater loyalty.”
Jason De Winne, general manager of ICLP, added: “Brands today are finding it difficult to bond with their customers; the level of choice means consumers are increasingly distracted. Our research shows that what consumers need from a brand in order to build an emotional connection is very similar to what they require from relationships with friends and loved ones. That is, good communication, reliability, consistency, reward and recognition.”
“Thinking about our own personal relationships, we know that people fall in and out of love and friendships – lured by ‘pastures greener’. Now we know that the same thinking can be applied to brand relationships which are dynamic and ever changing; if they weren’t then you would have pretty much a static number of customer’s year in, year out. But relationships are fickle and retailers looking to build and maintain devoted customer relationships should seek to truly understand what the emotional factors are that drive consumer loyalty.”
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