A new study from Meta and GroupM, “How to build profitable customer relationships using loyalty marketing,” examines the importance of brand loyalty in e-commerce and revealed some interesting results retailers and marketers should take note of, especially the notion that loyalty is changing. According to the report, “60% of US consumers surveyed say that a repeat purchase doesn’t mean they are loyal to a brand.” Instead, the most common sentiment of loyalty was succinctly stated by one survey participant: “Loyalty is when I advocate for that company to my friends, family, co-workers and whoever I interact with.”
What constitutes this new definition of loyalty?
Loyalty is based on reciprocity: It is founded in shoppers’ feelings that they are valued by a brand as much as they value the brand themselves.
Having a personal connection with a brand is equally important, if not more, than financial incentive in influencing where people shop.
Digital loyalty is driven by seamless shopping experiences, convenience, easy discovery, consistent availability, positive community endorsement and personal connections.
The report offers several tactics in five categories for online retailers and marketers to earn customer loyalty:
A seamless shopping experience – Ensure the usability of your website and app experiences. Offer novel and compelling cross-platform experiences that make it easier to discover and purchase products with a few clicks.
Convenience – Provide regular delivery updates. Weigh the cost of shorter delivery times and prepaid or in-store returning options to remove customer friction. Remove post-purchase friction by offering multiple pickup and return options.
Discovery and availability – Make it easier to navigate and search on your website so shoppers can easily discover products they want. Leverage social media and messaging technologies to make it easier to discover new products that are personalized to a customer’s interests and needs.
Community endorsement – Encourage reviews. Start an online community on the platforms your customers regularly visit to get them talking about your products. Facilitate open discussions within your brand-sponsored communities to connect like-minded people.
Personal connection – Build more collaborative relationships by committing to consistent listening and investing in reciprocal interactions. Leverage social media to demonstrate your brand’s mission and create content to connect with consumers on shared values.
We encourage you to download and read the full report as it contains many more details and findings for shaping efforts to build customer loyalty. We also encourage you to contact us today to learn how Dept. 11 can take these efforts to 11 for you.
