INSIGHTS INTO BRAND LOYALTY

Transcription

1 INSIGHTS INTO BRAND LOYALTY Can retailers create devoted customers? Do loyalty programs make customers loyal? NCR and Retail Systems Research (RSR) set out to find the answer to this question. After analyzing several different aspects of loyalty programs and customer preferences, we reached a conclusion about the most important step to building loyalty in your shoppers: Pay attention to what they buy, not who they are.

2 Consumers don t care about loyalty programs nearly as much as retailers. Even though many retailers capture customer data via loyalty programs, they rarely take action on the data to connect insights to the customer. Research by RSR and NCR revealed some interesting findings namely that simply deploying a loyalty program does not ensure loyalty by consumers. Retailers have long been conflicted about loyalty programs: they feel like they need them in order to collect the data they use to gain insight into their customers, but also feel like the programs themselves rarely deliver on their promises to retailers or to shoppers. Nikki Baird and Paula Rosenblum, RSR Managing Partners Retailers pursuit of customer loyalty 46% RETAILERS We actively pursue customer loyalty through loyalty programs 22% My favorite retailer has a good loyalty program 9% My favorite retailer knows me and caters to my needs Source: RSR Research and NCR, May He Said/She Said: How Shoppers and Retailers View the 21st Century In-store Experience, A 360 Degree View, Nikki Baird and Paula Rosenblum, RSR, May

3 Many retailers either aren t capable of or don t have time for insight studies. A whopping 72% of retailers said that they are only capable of basic analysis either because of time allowances or a lack of tools capable of getting more in-depth insights. Conversely, 7% of retail respondents indicate they are drowning in data, and only 19% of retailers say they can do repeatable, in-depth analysis. Consumers Reveal: Twenty percent say that their favorite retailer does a good job using their purchase history to serve them better. Ten percent believe their favorite retailer knows them well but doesn t act on the information it collects. Thirty-six percent believe their favorite retailer doesn t know their purchase history at all. 69% of consumers surveyed indicate that good prices win their loyalty. 03

4 Consumers prefer retailers to understand their purchase patterns. Almost half of all consumers surveyed expressed a preference for stores to remember what they buy. Retailers, on the other hand, have become almost universally obsessed with learning more about their customers lives. (Figure 5). Focus on who I am, not on what I buy A majority of retailers believe customer data is far more important than product sales data in helping them understand demand trends. Retailers are enamored by an influx of new data and information their customers, not so much. Customers are willing to hand over personal information in exchange for discounts. However, since few retailers have acted on that personal information, the majority of customers still just prefer retailers to put the right products in front of them. Consumers prefer products RETAILERS 16% 11% Product sales data is more important than customer data for understanding demand trends 30% 17% It s more important for a retailer to know what I buy, rather than who I am RETAILERS Strongly Agree Somewhat Agree N. AMERICAN 30% 12% Strongly Agree Somewhat Agree S. AMERICAN 32% 27% Source: RSR Research and NCR, May

5 How can you learn more about your customers brand loyalty? Take a deeper look into your customers preferences and presence. The first step toward brand loyalty is recognizing the shift in retail away from business-to-consumer toward a consumer-to-business, or C2B, model where consumers drive the relationships with retailers. In this C2B world, retailers must engage the consumer on their terms by interacting with them based on two factors: preference and presence. Preference and Presence Preference Do you really know me? What offers are important to me? Language Size Age Gender Favorite products Favorite services Favorite brands Presence Knowing how, when and where the consumer wants to interact. In a mall At the airport On the web Using a kiosk On a mobile device Navigating a GPS At the checkout 05

6 What if brand loyalty could change the retail standard? According to 2010 NCR consumer research, 83% of shoppers are more likely to choose one retailer over another if that retailer makes it easier for them to personalize and control where, when and how they interact through their preferred channel combinations. Some retailers fear that today s elusive consumer will only enjoy shopping on the web and that brick-and-mortar stores will become mere browsing centers. However, the data shows otherwise. Did you know that while online retailing continues to grow rapidly, 95% of all retail sales are still executed in the physical store? The challenge is converging digital and physical channels while personalizing the experience whether a consumer is in-store, near-store or out-of-store. 95% of all retail sales are still executed in the physical store. 06

7 Deliver information in your consumer s preferred channel Join the c-tailing revolution with NCR and adopt a shopping experience that spans channels and eliminates silos. C-Tailing Multichannel Retailing: 1. Delivers timely, personalized information and promotions 2. Eliminates confusion from disjointed information sources 3. Allows consumers to easily communicate their presence and preference via the channels of their choice 4. Gives your customers access to you through the Internet, assisted and selfcheckout, kiosks and digital signage, e-marketing and mobile technologies Consumers will continue to elude retailers until retailers approach them with this C2B lens. With a c-tailing strategy and solution, you can view the landscape from the consumer perspective. Today s consumer is empowered by information; they demand anytime, anywhere convenience and want to be served seamlessly across their preferred channels how, when and where they desire. We can help you navigate this evolving terrain. Contact us at retail@ncr.com to speak to an NCR Sales Representative. 07

8 Click here to Tweet this! Insights into Brand Loyalty: Can retailers create devoted customers? NCR Corporation 3097 Satellite Boulevard. Duluth, Georgia USA For more information on NCR, please visit: