In last week’s post I shared some alarming stats on the decline in consumer loyalty today. In a recent research study conducted by ICLP, a global loyalty consultancy, only 3% of consumers felt devoted to their preferred retail brands.
Are we surprised by this statistic given the state of the world today? A recent Gallup poll found that 55% of married Americans have had extramarital affairs. How loyal would you expect consumers to be when more than 50% of them aren’t even loyal to their own spouses? Consumers today are faced with more choices than ever they are bombarded with discount offers, and are quite adept at using price comparison shopping apps and affiliate marketing channels.
So, in our hyper-competitive, uber-distracted world, should we just give up on trying to build loyalty with our customers? How much money should we spend on a losing proposition? Should we just accept the fact that fewer and fewer of our customers will become loyal Lucys and most will be one-time Terrys?
When it comes to their relationship with brands, customers prefer to be polygamous. A recent study published by ICLP, a global loyalty consultancy, studied consumers in Australia and discovered that a whopping majority (97%) would cheat on their favorite retailer. The ICLP study, Deeply Devoted, looked at the psychological similarities between human and brand relationships and found that consumers are in less committed relationships with their favorite brands than ever before, with only 3% feeling devoted to their preferred retail brands.
While the numbers are shocking, the fact that customer loyalty is more elusive than ever is not a surprise. The question is how hard should you work to buck these trends? In the world of mobile shopping apps and effortless comparison shopping, how much should you invest to cultivate loyalty and repeat purchase? How do you measure the positive impact that loyal customers deliver?
Whole Foods’ business is in decline, and they want to respond by offering more discounts and lower prices. A better idea is to focus on their best customers to find opportunities for profitable, sustainable growth.
On February 8th, Whole Foods reported its sixth consecutive quarter of falling same store sales. The company is closing nine stores according to the Washington Post, and is abandoning its plans to grow from 470 locations to more than 1200. Its stock has lost half of its value since it’s peak in early 2015. What is going on?
Since its launch, this fashion retailer* has embraced a data-driven mindset and advanced customer analytics as a key to impressive year-over-year growth. Because of the discovery-powered nature of the business, email has always been an essential marketing vehicle for reaching current and prospective customers with relevant sale events at the right time. Over the years, the company had evolved a strategy leveraging five distinct daily email versions to communicate with major customer segments (based on historical purchase behavior).
But over time the efficacy of the email channel began to show signs of fatigue and decline. How could the team reverse this trend and find new ways to connect with customers through email?
Every marketer has heard of segmentation. We all understand the importance of building personas and targeting our message. But very few are using segmentation to its full potential. In Star Wars, a Jedi master was someone who had the greatest mastery of the Force, someone who understood its power and could use it for good. At Custora, we work with many of the most successful and sophisticated B2C marketers in the industry. Many of these organizations have achieved Yoda-like mastery of segmentation and are seeing extraordinary performance gains across their acquisition, growth, and retention campaigns. And while each business is unique, they each share common traits.
We’ve distilled these common approaches down to the 7 secrets to segment like a Jedi master. Follow these steps and your organization can evolve past batch-and-blast to create a world where every communication and touchpoint is relevant and engaging for your customers.