Price Alone Won't Drive Consumer Loyalty

Survey finds shoppers say they value customer experience more

October 20, 2017

Consumers' price sensitivity has been a challenge for retailers ever since the global financial crisis some 10 years ago, but price alone is not enough to drive consumer loyalty.

Newly released survey data from Blackhawk Network, a financial technology company, suggests that when gauging loyalty to a brand, consumers place a higher value on qualities such as experience and convenience than they do on price.

The June survey found that 94% of US internet users said "a consistently good customer experience" was a top reason for loyalty. By contrast, just 57% cited "regular lower prices."

Nine in 10 respondents said they engage at some level with a brand if they consider themselves loyal to it. That engagement could take a variety of forms, from visiting the brand's site to posting about it on social media. 

Interestingly, the Blackhawk survey found that even consumers who don't consider themselves loyal to a brand will nevertheless recommend that brand to others. Fully 50% of "nonloyal" consumers said they would do this, compared with 86% of loyal consumers.

 


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