Customer loyalty is an important part of any business, but an extremely hard thing to gain and retain. This is especially difficult during the holiday season when customers are distracted and impatient. So, as we dig into 2014 and the holiday season is behind us, it is time to focus on energizing customer loyalty.
According to a 2013 LivePerson study, online shoppers give brands no more than 76 seconds of their time if their needs are not met, making it extremely difficult for a business to change a customer’s perception of their brand. Reason? Although a customer’s distraction and impatience may be heightened during the holiday season, they still continue to be a factor through the rest of the year.
Customer loyalty has become more and more lackluster as years have gone on. This is due to a variety of elements including:
All of which will continue to be a factor in 2014. Although these influencers are part of the problem, they can also be used as a solution to energizing customer loyalty.
One way that technology has become an extreme influencer on customer loyalty and customer purchasing is through Big Data. The accumulation and analysis of customer data gives businesses insight into everything from customers’ daily behaviors and in-store visit frequency to a customer’s engagement with social media.
This customer data can be used by businesses in numerous ways, such as tailoring customer loyalty programs to fit their customers’ needs and improving the quality of their CRM programs. Customer loyalty programs are no longer just a coupon, but are adapted in order to offer incentives and rewards that can be used as a point of customer engagement.
Customers now also have powerful research tools at the tips of their fingers, readily available to turn them away from their usual brands at the press of a button. With economy being such a large factor, customers can easily search online for better deals while in a store, breaking customer loyalty. A recent study found that if an in-store price was $5 or more above Amazon's price, 63% would purchase online.
In order to energize customer loyalty businesses must accommodate customer wants and needs regarding their preferred communication channels. Although retaining customer loyalty is not easy, its challenges can be met by using contributing factors as part of the solution. If businesses can be proactive to satisfy customer demands, obstructing elements can become a tool rather than a downfall.
Learn more about enhancing customer engagement with Alert Solutions.