Retailers persist in thinking that the chance of more personalized service will persuade shoppers to share information (such as email address). But it’s not quite so, according to Keeping Loyal Customers Happy, a study by BRP.
While 37% offer better service as a perk, only 22% of consumers are convinced by it. What they want is specialized offers —3 4% say so, although only 27% of retailers are providing them. Overall, 68% of consumers are more likely to shop at a store that offers personalized rewards based on loyalty.
In addition, 26% of shoppers want credit toward future purchases, a benefit being offered by only 13% of retailers.
And the option to have the customer receipt emailed is a non-starter on both sides — 17% of retailers offer it, and 13% want it. Product incentives are more popular with retailers than they are with consumers.
For this analysis, BRP compared the results of its 2018 Customer Experience/Unified Commerce benchmark study with its 2017 consumer study.
Part of the problem is that only 10% have a system that is working well for identifying the mot valuable customers.
The most prevalent method for IDing them is dollars spent — 21% say it is working well and 45% that it is being used but needs improvement.
Shopping frequency is almost tied among consumers, but only 13% of the brands say it is working well. Another 53% feel it needs improvement.
Brand advocacy/social media endorsement works well for only 10%, but 33% say they will utilize it within three years.
To round out the old recency-frequency-monetary formula, 55% are using recency, but only 7% say it is working well.
How are they enhancing the customer experience? Through three means:
- Invitations to special events — 50%
- Personalized promotions — 46%
- Personalized rewards — 32%
- Preferred/first access to new products — 21%
- Special/preferred assistance rom sales associates — 18%
- Personal shopper — 14%
- Personalized e-commerce microsite — 11%
- Special shopping times/days — 7%
The study concludes, “Keeping loyal customers happy is critical as it only takes one unsatisfactory shopping experience for 63% of consumers to stop shopping your brand.”
It adds that brands have to "ensure each and every shopping experience is personal and positive."