InMoment surveyed 1,300 consumers in the United States to understand the state of trust and loyalty, as well as customer perception about retailers’ attempts to offer more experiences versus simple transactions. Data has been cleansed and validated.
In the age of what McKinsey & Co. calls the “experience economy,” retailers are faced with a challenge: They must innovate the products and services they offer, while also creating and maintaining a customer experience that will keep customers both trusting and loyal in the face of endless options.
A lofty goal, says the report, and many retailers and brands have stepped up their game by ironing out the seams between online and in-person, listening more and more transparently, and transforming brick-and-mortar locations into experiential environments versus simple transaction points. In addition to these massive changes, brands are also competing in a space in which consumer privacy and trust is more valuable than ever.
Amidst these new rules and fundamentally different expectations has risen a more empowered customer, says the report, one who has brands asking if ideals like trust and loyalty still exist between individuals and institutions, or whether we’ve entered a new world where infinite choice and outsized bargaining power have turned these important commercial tenants into relics.
InMoment surveyed 1,300 U.S. consumers to understand the state of trust and loyalty, as well as customer perception about retailers’ attemps to offer more experiences versus simple transactions. The research produced a treasure trove of insight; here are the three major themes that surfaced:
83% of consumers consider themselves about the same or more loyal to brands than their parents. And nearly 30% of Millennials reported being more loyal than their parents, the highest percentage among all demographics. When researchers asked those who consider themselves less loyal than their parents why they felt this was the case, the top answer was that they have more choices 54%, with 37% saying it was because they have more information.
For consumers who felt they were more loyal than mom and dad, 42% said it’s due to doing more research and having first-hand experience, with 35% saying its because they have a larger variety of choices.
The strong message to retailers is that consumers have choices, do their homework, and are more discerning.
Researchers asked consumers to classify themselves as one of three loyalty types. Here’s how they ranked them:
The 2018 Retail CX Trends study asked consumers whether a “recent, enjoyable” shopping experience occurred at a physical store, digitally, or through a combination of physical and digital.
Trust and loyalty, like every other human value, are complex. Today’s retail customers have new expectations that can be difficult for brands to match. At the same time, the findings in this study were very clear: Today’s consumers will be very loyal when retailers deliver the meaningful value they promise, and in a way consumers can count on.