Standing out in a world of choice isn’t easy. Earning consumer devotion to a brand or store takes more than just offering a good product. Price, packaging, customer service and reputation are just some of the factors involved in a consumer’s decision-making process. That’s why getting to the heart of what makes a consumer stick or switch can be the difference between flourishing and fading. While Nielsen research shows that bigger rewards generally inspire higher loyalty levels, loyalty programs are no guarantee of loyal behaviors.
How do you turn a fickle fan into a faithful follower? You start by understanding the needs and motivations that drive their purchase decisions. And then you deploy the strategies and tactics that deliver the most value. This global study outlines the reasons why consumers switch brands, service providers or retailers and identifies the loyalty program attributes that potentially have the most staying power.
Cuttingthroughthe clutter in a world of choice is not easy. Earning consumer devotion to a brand or store takes more than just offering a goodproduct. Price,packaging, customer service andreputation are just some of thefactorsinvolved in thedecision-making process. But getting tothe heart of what makesa consumer stick or switch can be the difference between flourishing andfading. While Nielsen research shows that, in general, the higher the loyalty levels, the bigger the reward, loyalty programs areno guarantee ofloyal behaviors.
“There is a strong linkbetweenthe wayconsumers describe their loyalty habitsand the way they subsequently buy—so evencomparatively small shifts in what consumers say can manifest in big changes in what they do,” said Julie Currie, senior vice bpresident Global Loyalty, Nielsen.
“While there issome consistency aroundthe world in loyalty sentiment within categories, across retailers and service providers,there are also notabledifferences—especiallyfor consumableproducts and inthe online retailing space, where the likelihoodto switch is greater,”continued Currie.
So how do you turn a fickle fan into a faithfulfollower? You start by understanding the needs and motivations that drive theirpurchase decisions. Andthen you deploythe strategiesand tactics thatn deliver the most value.This global study outlines thereasonswhy consumers switch brands, service providersor retailers and identifies theloyalty program attributes that potentially have the most staying power.
The survey findings suggest a direct link between the frequency of purchase andthe level of loyalty tothat category. For everyday-use products, ongoing decision-making often changes the relationship. For example, one-quarter (24%) of respondents aroundthe world claimed complete loyalty to their mobile phone brand/service provider and financial institution—the highest loyalty percentage reported globally for any of the 16 categories measured.