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BizReport : Loyalty Marketing : June 06, 2019

Study: Quality key for loyalty programs

When it comes to building a loyal customer base, the quality of products is key for merchants and marketers. That's a key takeaway from new Yes Marketing research which found the product quality and value are the top factor for 41% of loyalty customers.

by Kristina Knight

Product pricing ranks second of the loyalty-making list, with 35% of consumers reporting that the price of products is important to their brand loyalty.

What doesn't top the list? Free shipping. For years experts have touted the importance of free shipping, but this report finds that only 3% of consumers weigh free shipping as a loyalty-important offering. Where does free shipping come into play? For new customers.

Just under half (40%) of consumers initially shopping with merchants/brands say free shipping is important to them. This could indicate that creating an initial "free shipping" offer for customers new to a merchant or brand could get them to make that first purchase. After which, brands can show the quality and value of their items, building on that initial meeting.

"It takes so much more to deliver on the different expectations customers have for retailers at each stage of their journey. Smart brands must differentiate between effective acquisition tactics and effective loyalty strategies. This distinction can help brands increase lifetime customer value and create truly successful lifecycle programs," said Jim Stern, President, Yes Marketing.

In addition, researchers with the 2019 Customer Lifecycle Report found:

▪ 1% of those surveyed said convenient return options and brands' social responsibility built loyalty for them
▪ Nearly 10% say reward points toward specific purchases is important to their loyalty journey
▪ 73% of those surveyed say they "are adequately rewarded" by favorite brands

"With the continuous evolution of the retail sector, retailers must build strong customer relationships to create lifetime loyalty and drive revenue," said Michael Iaccarino, CEO and chairman of Infogroup, parent company of Yes Marketing. "Given the significant impact customer loyalty has on business results, retailers need to find a service and technology partner who can enhance and execute their marketing strategies to adapt to changing consumer expectations."

More data from the Yes Marketing report can be accessed here.

Tags: ecommerce, loyalty marketing, loyalty marketing tips, loyalty program trends, Yes Marketing

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