What COVID-19 has done to customer loyalty.

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Miskat542
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Joined: Mon Jan 24, 2022 9:08 am

What COVID-19 has done to customer loyalty.

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Consumers have recently become more loyal to the brands they buy. According to a survey by the e-commerce marketing platform Yotpo published last November, a quarter say they are more loyal to the brand than the previous year. A brand's product, price, customer service, and loyalty program all help keep customers coming back. In recent years, several retailers, including Macy's , Target, H&M , and Nordstrom , have added new options to their loyalty programs . But when COVID-19 made its way to the United States, many consumers veered away from normal shopping habits and started stockpiling products. Amazon notified customers in March that employee contact list some basic household products were out of stock as more consumers began to shop online. Amazon said in a statement at the time that it was "working around the clock with our business partners to ensure availability of all of our products and to provide additional capacity to deliver your entire order." Costco Chief Financial Officer Richard Galanti also said in March that the company's supply team was working with existing suppliers and new sources to meet growing consumer demand and restock shelves.

But these stockouts can prompt consumers to seek out alternative brands. A McKinsey report found that more than 75% of consumers have tried new brands, new places to shop or new ways to buy so far during the pandemic. Product availability was the top reason consumers searched for new retailers or new products in the past two months, followed by better prices and promotions. However, the most common issues aren't necessarily the most detrimental to a customer's loyalty to a retailer, according to research from The employee contact list Wharton School's Baker Retailing Center and Wise Plum. “[N]all problems are not created equal in their impact on customer loyalty. In fact, the top 10 problems were different from the most damaging problems,” the report said. Among the most damaging issues encountered were a difficult returns process and a difficult-to-navigate website or app, while the most common issues were with product availability, according to the report. It's how retailers and brands respond to these issues that helps protect the customer loyalty they've built with consumers. The Retail Wire discussion forum posed the following questions to its Brain Trust panel of experts :Do you think retailers have delivered in recent months in the eyes of consumers or have they largely failed? What do you think are the best ways for retailers to “retain” consumers today? Here are six of the most insightful comments from the discussion. Comments have been edited by Retail Dive for length and clarity. Mistakes happen, but they need to be fixed Neil Saunders, Managing Director, Global Data Retail : Having problems doesn't destroy loyalty in and of itself. Not addressing, fixing and apologizing for these things is what causes resentment. Amazon recently messed up one of my deliveries by sending it to the wrong place. A simple chat that lasted three minutes resolved the issue and new products were sent (a full refund was also offered).

I've been impressed with the service and it's made me more loyal to Amazon - and more likely to renew our Prime membership - because I know Amazon will correct any mistakes made. And mistakes happen, no matter how good the retailer. A frictionless end-to-end experience will create loyalty Ken Morris, industry thought leader: It's been a mixed bag with some retailers rising while others have fallen. Inventory issues have many causes, ranging from supply chain disruptions to outdated old systems. Real-time perpetual inventory has yet to permeate retail. Synchronicity from stores to web to wholesale is necessary to compete with Amazon, it's their secret sauce, but the technology investments of brick-and-mortar retailers to achieve this goal have not been realized. Reserving inventory, managing returns and smooth service are the ways to win and retain your customers. Optimize the basics Rodger Buyvoets, CEO and Founder, Crobox : Many issues raised by research are beyond the control of the retailer (eg product availability). I think retailers did what they could to overcome many of these challenges in a very short time. The employee contact list real test is to be seen: how will retailers follow the transition to a digital-first approach? Building consumer loyalty means optimizing the fundamentals: free returns, priority withdrawals, smooth customer journeys, etc. Ultimately, merchants who build loyalty will be those who deliver better personalization, seamless communication, and a digital experience that goes above and beyond.
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