Building loyalty has long been a marketing goal, but discrete loyalty programs don't always work for retention. Many members never engage beyond a sign-up interaction to collect a reward.
A more holistic customer experience approach has been the retail focus du jour, but when it comes to creating loyalty, products matter most, according to a new study. In a July 2018 survey of US internet users by AYTM for digital commerce solutions provider Yotpo, a majority (55.3%) cited products as the leading factor that makes them loyal to a brand. Great deals were the biggest influence among one-quarter of respondents, trailed by customer service (7.1%) and convenience (5.7%). And being affiliated with a cause (1.8%) didn't sway many of those surveyed.
Conversely, poor product quality was the No. 1 reason why a brand would lose a customer's loyalty (51.3%).
Brands are fooling themselves if they think a consumer will turn into a loyal customer after one purchase. In fact, the greatest number of US internet users (37%) polled said it took more than five purchases before they became brand-loyal. Just 12% considered themselves loyal after two buys.
As far as spurring these repeat purchases, fair pricing (64.5%), free shipping (61.3%) and online reviews (57.3%) were motivators.
Freebies weren't offered as a choice, but a survey by Dotcom Distribution found small free items like a sticker or sample increased the likelihood of a US digital buyer making a repeat purchase from a retailer—especially among younger consumers.