Customer loyalty isn't what it used to be. almost all retailers who generate some kind of repeat business have the opportunity to boost their.
Table of contents
- Is Customer Loyalty Sustainable in Today’s Digital World?
- Follow me on beBee
- Three Ways to Nurture Customer Loyalty in a Disloyal World | Digital Marketing Magazine
- Three Ways to Nurture Customer Loyalty in a Disloyal World
Written by Alexandra Soroka on Thursday, April 16th Long term customer retention is definitely simpler in some industries than others. Many products and services strategically involve customer exit barriers, such as contractual agreements, high initial costs, fine print, and other ways of locking in the client. In other sectors, the app marketplace for example, which is often described as competitive and even saturated this is not quite the case, and some extra work is required to maintain content customers.
Even if your product is unique and of high quality, there will always be a multitude of competitors out there who have superior performance in at least one aspect and are ready to do all they can to capitalize on this and swoop in on your hard-earned customers. This is where the significance of investing in creating customer loyalty is apparent—neglecting this piece of your strategy can cause a great loss that will be a real struggle to recover from.
Here are a few of the most common and detrimental mindsets that are huge drivers in destroying customer loyalty.
Is Customer Loyalty Sustainable in Today’s Digital World?
Sometimes you have to work just as hard to maintain them as you did to gain them in the first place. Think about all of the advertising, promoting, etc. For apps this means consistently offering fresh content and updated features, sending push notifications that keep the user excited, including contests and other opportunities to promote engagement and show your interest and appreciation for the user.
The amount of trust consumers put in brands is decreasing all the time, and a typical consumer will now switch brands without hesitation if they get a better offer. The conventional wisdom about competitive advantage is that successful companies pick a position, target a set of consumers, and configure activities to serve them better.
The goal is to make customers repeat their purchases by matching the value proposition to their needs.
Follow me on beBee
By fending off competitors through ever-evolving uniqueness and personalization, the company can achieve sustainable competitive advantage. An assumption implicit in that definition is that consumers are making deliberate, perhaps even rational, decisions.
Their reasons for buying products and services may be emotional, but they always result from somewhat conscious logic. Therefore a good strategy figures out and responds to that logic. But the idea that purchase decisions arise from conscious choice flies in the face of much research in behavioral psychology. The brain, it turns out, is not so much an analytical machine as a gap-filling machine: Intuition, thoughts, opinions, and preferences that come to mind quickly and without reflection, but are strong enough to act on, is the product of this process. This behavioural shift is putting some fundamental, established marketing tactics in doubt, but are we as marketers powerless to stop it?
Why customer loyalty is down 1 — Companies can not keep up with rising consumer expectations.
Three Ways to Nurture Customer Loyalty in a Disloyal World | Digital Marketing Magazine
Declining customer loyalty has been an issue for most companies in spite of heavy investments in service improvement. If Amazon does not question a faulty delivery and deals with the problem immediately, consumers will expect the same of their local supermarket.
- Time Pressure and Stress in Human Judgment and Decision Making;
- Attitude #1: Concentrating on customer acquisition—retention is a given?
- The River in Winter!
Many companies thought there was a shortcut to creating customer loyalty: However, all the latest studies agree that loyalty cards slash profit margins on existing customers. The fast adoption of smartphones and tablets has further enhanced transparency.
Today, more than half of the consumers use their mobile devices to compare prices while shopping. The online world has made price transparency very accessible, a trend that spells danger for any company out there. When customers are disloyal, they are really saying that a product or service was not relevant enough for them to remain a customer there.
Three Ways to Nurture Customer Loyalty in a Disloyal World
The relationship is too rational in nature instead of emotional. According to popular theory, there are two ways to escape the commodity market. On the one hand a company can work more efficiently, making it possible to sell its products cheaper. On the other hand, you can offer a unique added value, thereby reestablishing differentiation so you can charge higher prices again.
If we look at the history and look at people behaviour, historically people engaged into brand loyalty, but how do you get customers to become loyal to your brand in the first place?