Tag Archives: Digital Marketing

Brand Loyalty

Spoilt for choice – Is Brand loyalty of Buyers a thing of the past?

The Covid 19 pandemic has seen variants across the entire spectrum of human behavior, including consumers’ brand loyalty. The latest McKinsey reports, “In the US, more than 60% of consumers who tried a new behavior plan to stick with it post-crisis.” A second study agreed, saying that 62% of people who changed their preferred brand pre-pandemic will most likely make it a permanent change. 

Research says during the pandemic, consumers have changed their shopping choices. When they didn’t find a particular product with a specific retailer, they moved on to a different brand. This causes supply chain disruptions globally. Availability, convenience, and comfort took precedence during times of scarcity. 

We cannot overlook Post pandemic changes in consumer behavior as temporary. It can shape the future trajectory of brands and customer relationships. 

Buying Behaviour Pre-Pandemic 

The change in buying approach is not entirely a post-pandemic trend. In 2019, a study of more than 34000 customers by Verint® Systems Inc. stated that brand loyalty has steadily declined for years. More than 60% of the people interviewed in the study said that it was very likely for them to switch to a competitor with better customer service. A report by Accenture Strategy found nearly 90% of buyers were quicker to shift to a new brand than they were three years back. 

Brand Loyalty Is A Thing Of The Past

Brand loyalty is not just declining. It is quickly diminishing. In the era of e-commerce and social media, buyers have plenty of choices. There has been a mass migration of buyers onto the internet. Billboards and television ads are almost dead.  Hence, consumers today tend to be more versatile and less loyal than ever. Research on consumer satisfaction indexes has long proven that despite having a positive experience with an existing brand, satisfied consumers are less likely to buy the same car, shampoo, or washing machine again. 

Previous research indicates that customers are invested in a brand for reasons like consistency, increase in value, quality, reward points, personalized gifts, etc. Today, brands are struggling to recall value. Between times of loyalty to no brand loyalty, the world around us has gradually but significantly shifted.

Reasons For Changing Consumer Behavior

Some of the reasons that can explain the changing consumer behavior are:

Product Availability  –  With shutdowns happening since 2019, many products went off the shelves. Despite preferences, consumers found more options – similar and sometimes better in quality. 

Exposure to online reviews – Customers used to listen to brands. Now, they have the option to read online reviews and assess the product’s quality. We see people reading an online review and saying, “I am going to try it,” now more than ever. 

Customer service – More than 85% of customers say that excellent customer service is a ‘make it or break it moment’ for them when selecting a service provider. 

Convenience – When a diverse range of products is available at a  screen swipe, an average buyer wants maximum comfort. 68% of consumers say they intend to engage with a brand that makes it easy for them. 

Technology – Close to 50% of customers say that they are more likely to stay loyal to brands with improved technology than their counterparts. We often associate good tech with better customer engagement. 

Human contact – In sharp contrast to the previous point, while many customers prefer self-service, they also find it comfortable to engage with a person across phone and digital platforms. Non-availability of people in customer service proved to be a firm no-no for buyers. 

While customer service has improved across services, some outperforming brands and retailers have set the bar high. Today’s world is fast evolving to provide the best shopping experiences online. Buyers don’t have to be on their feet all day hopping from one store to another. It is not enough to be good or better. Be the best to stand a chance at winning the buyer’s brand loyalty. 

Value for Money

“Value for money” is the primary reason to switch brands more often. Increasing global awareness of ethical, sustainable, and value-based brands (e.g., supporting local businesses) are some reasons why buyers choose to move away from certain brands or products.  

Another challenge for retailers when retaining loyal customers on the internet is competing for the buyer’s attention, engagement and consistency.  While it takes time to nurture such loyalty, in the face of the bombardment of information on the internet, people who want to buy do not have the attention span for one particular brand. Therefore retailers investing at least 50% of their budget in improving customer experience are set to gain in the long run because research says loyal customers are more likely to spend 67% more than new customers. It is always easier to sell to someone ‘again’ than for the first time. Technology can make personalized products and services for all buyers a reality. Brands can reap rich profits through early investments in robust IT. 

Conclusion

The soar in online shopping is unlikely to decline after the pandemic abates. For brands to maintain a solid relationship with their valuable customers, they must keep a firm grip on their brand loyalty programs. Instead of running isolated programs around marketing, companies should integrate brand loyalty goals into all departments such as operation, finance, and technology. It is crucial to ensure seamless coalescing of operation, marketing, and the tech footprint of the company to build brand loyalty. Swift and smooth returns, replacements, and refunds, with efficient and polite customer care, are essential success factors for a brand. Couple it with a user-friendly online interface. And you have the success mantra for customer retention in the long run.

Mindfire Solutions provides robust IT solutions and a user-friendly online interface that can help you bridge the gap with your customers. Connect with us to know more about solutions that can help grow your business. 

 

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Changes In Marketing Functions Over The Years!

Changes In Marketing Over The Years
Changes In Marketing Over The Years

To build an effective marketing strategy in order to lure customers was never easy. With the introduction of Internet there was a bit of change in every company’s marketing strategy. Previously, companies used to have print ads only but, when the Internet storm barged in, many businesses started to have online presence. And, then with the surge of social networking portals, multifunctional cell phones, and gadgets, the face of marketing again took a major makeover. In order to retain existing customers and to attract new ones, companies keep them updated about  changes in marketing over the years and latest trends in marketing.

Internet and technology has not only benefited customers but also, created newer space for marketing in the virtual world. With the emergence of various other forms of marketing such as social media marketing, e-mail marketing, text/display ad marketing etc. companies have become more aggressive and innovative in building their marketing strategies to attract new customers.

Gone are the old Days!

A decade ago, creating personal relationship with customers was given utter importance to boost sales through one-to-one interaction. Consumers had to believe to what is being said. They did not bother to verify the information provided. But, the tables have turned now and the customer is full of information at the click of a finger. Study says, majority of Internet users today, tend to conduct a background research of a product before making a purchase decision. For example: what would you do first when you decide to purchase a smartphone for yourself? You will immediately jump on to the Internet and start comparing, reading reviews & feedback for a few of them before making a decision. Consumers have become more and more demanding and adventurous to try out different offerings which have eventually put greater emphasis on creating brand value.

New Age Marketing!

The gigantic online presence of consumers has revolutionized the way of advertising and marketing. An Internet user today can buy almost everything online today. Thanks to the Internet which has changed the way of trade and commerce. Businesses have started capitalizing the virtual world by forming networks which eventually allows them to get closer to their clients. New age marketing is not limited to banner ads on websites only but has extended beyond in the form of video marketing, blogging, campaigns on social networking websites, discussion forums etc. Internet has not only been a reliable source to gather information through interactions, polls and surveys but is also a great medium to keep marketers updated about consumer needs and taste. Search engines have been eminent in promoting a product/service. If you are not present in any of the search engines, it means that your business has lost reputation amongst your target audience. Different forms of Marketing help search engines to rank websites. Hence, companies are now focusing on marketing to boost sales. According to statistics; Twitter has assisted 42% companies present on its portal to bag new customers, Facebook has helped 67% B2C and 41% B2B companies to generate business, Inbound marketing will cost 62% cheaper than outbound marketing. This shows the intent for aggression among companies. Previously, companies had to rely on customer loyalty to prevail in the market. But, today if a company’s presence is not felt to customers then, possibility is more for competitors to climb over.

This post briefly describes how the face of marketing has changed over the years and how important is marketing for a business. Marketing is not limited to just bigger profit making businesses only. Rather, it has turned out to be an important weapon for every business. Every business (big or small) is marketing itself today.

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