Report details four ways retailers build customer loyalty
There are four key elements that sustain a customer’s loyalty over the long term (and price is not one of them), according to the newest research from Synchrony Financial.
According to Synchrony Financial’s 2015 Customer Experience and Impact Study, which examines 27 elements of the shopping experience, four experiences stand out as most valued by customers and translate into greater spend and loyalty for retailers.
More than half of shoppers say they would pay a higher price for the customer experiences they value most, and 77% of shoppers would be more loyal to stores that provide their personal top three customer experiences. Of the 27 retail elements studied, four emerged as most valuable to consumers and indicate the importance of simplifying and easing the shopping experience.
The top four elements include:
1. Pick your own sale items ranked highest in the survey, with 42% of customers finding this a valuable shopping feature.
2. Hassle-free returns was noted by 41% of respondents as important, with favorite benefits such as no time limit, no need for a receipt and free postage on returns.
3. No coupons needed to always get the sale price is key for 40% of participants who automatically want the lowest price without having to clip or find discounts.
4. Earn points to redeem for extra savings is ranked by 33% of shoppers as an important benefit and may lead them to spend more with the retailer when rewards are easy to accumulate and redeem.
“Retailers that build lasting loyalty know their customer’s preferences and integrate these elements into the shopping experience,” said Toni White, chief marketing officer, Synchrony Financial. “This study reinforces the finding that purchase decisions are driven by positive, practical and personalized experiences, in addition to a compelling price/value equation.”
In addition to the four elements that matter most to survey respondents, aspects that contribute to the “best in-store experience” as described by shoppers in each retail category include:
Apparel stores: 73% will shop more often as a result of helpful, attentive associates; clothes they like and a variety of merchandise; and good value and prices.
Department stores: 62% of shoppers will visit more if there are helpful, courteous associates; value, affordability and good sales; and clothes they like in their size.
Mass merchants: 57% of customers want a one-stop shopping experience and good discounts, deals and prices; the merchandise they want; and to make one trip with products that are easy to find.
Certain experiences matter more than others to different shopper segments. The vast majority of millennials (89%) indicate they would be more loyal to retailers offering the benefits they want most. Millennials (69%) and Gen Xers (55%) are also more likely to pay more for the experiences they value.
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Study: Contactless mobile payment set to grow
NFC-enabled contactless mobile payments, such as those enabled by smartphone-based digital wallet services like Apple Pay and Android Pay, currently make up a tiny fraction of card transactions. However, a new study from Indian mobile solutions provider Mahindra Comviva suggests contactless mobile payments are set to grow quickly.
With the global growth of mobile POS systems, from 2015 to 2018, contactless mobile transactions have the potential to reach 4% to 5% of retail payments, with growth in transaction volume accelerating after 2020. Total sales of mobile POS hardware in 2014 amounted to around 10 million devices.
The study also indicates that cards will account for 273 billion global transactions at a combined value of $30 trillion by 2018.
Coupon printing just got easier
New York-based coupon publisher News America Marketing, which produces billions of coupons annually in the U.S. and Canada, is making the printing of online coupons easier for consumers.
News America Marketing is using new coupon printing technology for it SmartSource.com website that allows consumers to print coupons without having to download coupon printing software. The solution was soft-launched in August, and has seen print success improve by rates approaching 100% from the previous solution.
"SmartSource now offers consumers a secure printable coupon solution that frees them from the frustrating requirement of downloading print control software that severely limits consumer print success rates," said Henri Lellouche, senior VP of global innovation. "We're thrilled to have resolved a problem that has plagued this industry since its inception, namely extremely high print failure rates.”
News America Marketing worked with Adobe Reader extensions through Adobe technology provider Datalogics, as well as ThreatMetrix's Trust Defender. The new printing solution launched concurrently with a redesign of the SmartSource.com website.