Today on PromoMagazine.com an article titled, “Consumers Put Price First in Calculating Retail Loyalty: Colloquy” describes results from a wide ranging survey of consumer loyalty factors in retail categories such as grocery, personal care, mass merchandise, department store and specialty retail. Unlike a year ago when customer service was considered a top element of loyalty, today price leads. Walmart was thus identified as the loyalty “winner” across many of these categories.
Competing for customer loyalty strictly on price is a losing proposition unless you’re Walmart, who pairs with price the equally powerful message of value. Both rule the day in a down economic climate:
“Our 2008 index showed that loyalty marketers worked within a significantly diffe5rent retail landscape,” Colloquy partner Kelly Hlavinka said in a release accompanying the latest research. “Customer service, store environment and a wide product selection were the underlying factors for customers’ self-professed loyalty [in the 2008 study.] But our 2010 index proves that the Great Recession became the great equalizer. Low prices have stepped up to become retail’s strongest loyalty lure, according to consumers.”
One of four recommended actions retailers should take is an especially strong fit with mobile engagement strategies such as text message promotions:
“Be data-driven, using loyalty programs to collect information that can make your communications, pricing and inventory more relevant to your best customers. Hlavinka points to the examples of Kroger and CVS as two brands using customer data effectively to win the loyalty contests in their categories and regions this year.”
With price the leading decision factor around loyalty, mobile comparison shopping enabled consumers need incentives to visit and remain in-store long enough to discourage leaving for a better deal elsewhere. We’ve blogged recently about ways marketers can meet this challenge using mobile:
- Marketers’ Priorities All Screwed Up with Respect to Loyalty
- Marketers Striving for Loyalty Should Make Mobile Engagement the Target
- Brand Marketers Break through the Engagement Barrier with Mobile Promotions
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