According to a recent report from Yes Marketing, more than half of the consumers surveyed cite that they’ll pay more to purchase items from a retailer they frequent.
The report entitled “The Retail Shopper’s Journey to Loyalty”, was derived from surveying more than 1,000 retail shoppers. The goal was to analyze and identify consumer priorities and motivations.
The report found that 41 percent of consumers consider the quality and value of a product to be the number one reason they’ll be loyal to a specific retailer. The price of a product came in as the second top consideration, according to 35 percent of those surveyed.
While the report did illustrate that new customers are more likely to connect with a retailer due to free shipping or other incentives, long-term consumers are more likely to stick with their favorite retailer. Only 3 percent of consumers said free or expedited shipping was a consideration in terms of loyalty to a retailer.
The report highlights how brands can leverage this to drive more revenue for the long term from loyal customers.
The president of Yes Marketing, Jim Sturm, commented “The seamless and personalized consumer experience, which is a critical component of loyalty, has become a table stakes. 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.”
The report also had some other interesting findings of consumer priority and motivation.
For instance, 39 percent of consumers place a significant priority on rewards programs. These consumers said cash incentives are more likely to motivate them in terms of loyalty. Early access to products and exclusive promotions were also driving factors (23 percent and 18 percent respectively).
A surprising 73 percent of consumers reported that they were satisfied with the level of rewards for the royalty they give retailers.
The least influential drivers towards loyalty were seamless return policies, social responsibility, and marketing campaigns. A mere one percent of consumers ranked these as a priority.
Michael Iaccarino, the CEO of Infogroup which is the parent company of Yes Marketing, said “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.”