The Secrets of Retail Loyalty

The secret to building retail loyalty? The best kind of customers are engaged customers. Not only will engaged customers buy more products, they will advertise your brand to their friends, which is the best possible way to market your business.

The Direct Marketing Association (DMA) recently conducted research on customer engagement, what makes brands engaging, and what consumers see in their favourite brands.

There Are 4 Types of Consumer Brand Loyalty:

Active Loyals = 40%
Stay loyal to brands for both routine and special purchases. Tend to be both older and younger.

2. Habitual Loyals = 23%
Stay loyal for routine buys, but shop around for special purchases. More men than women in this category.

3. Situational Loyals = 9%
Flexible for routine buys but loyal for special purchases. Proportion rises to 15% of 16-24-year-olds.

4. Active Disloyals = 27%
Have no brand loyalty. More women than men, and more likely to be in the 45-64 age group.

Consumers continue to use a brand even though they could get a cheaper deal elsewhere for a number of reasons:

52& Good service
48% Quality of products
46% Most convenient
32% Good at dealing with problems
32% Good offers/deals

What do consumers like receiving from their favourite brands?

33% Tailored offers/ideas
29% General news/updates
28% Requests for feedback

They would like their favourite brands to:

46% Offer loyalty schemes
39% Give exclusive access to items or deals
36% Offer time-sensitive discounts

There are mismatches between what a consumer’s favourite brand does and what they would like it to do:

As consumer to writer reviews:
42% do this
16% would like them to do this

Ask for feedback on service:
39% do this
19% would like them to do this

Offer incentives for recommendations to friends and family:
17% do this
32% would like them to do this

Send them surprise free gifts:
11% do this
47% would like them to do this

Follow them back on social networks:
11% do this
24%would like them to do this

Brands could move to virtual assistants or other new ways to interact:

48% are very/quite interested in in virtual innovation
79% of 16-24-year-olds were very/quite interested
25% of the 65+ group interested