There has been a 25% drop in consumer commitment to brands and companies – especially amongst the young and more affluent, according to new research from Carlson Marketing Group. Only three out of 10 people show any brand preference.
Women are more demanding when it comes to service levels; saying sorry ranks as the No: 1 factor in customer loyalty according to over 80% of respondents and, it is not the frequency of customer contact that increase loyalty but the number of channel access points provided.
When more than three sales channels are used by a customer their brand loyalty is increased by up to 33%.
The move toward high value customers is very evident in the exclusive survey. A company’s best customer is being courted by the competition as brands move to shed low value customers.
And finally, consumers expect more from the companies and brands they use most often. If perceived ‘delivery’ does not meet expectations companies become worse off.
According to the chairman of Carlson Marketing Group the report is a real wake-up call to the service industry against over-promising and under-delivering.
The relationship marketing agency widened the scope of its annual UK study into customer loyalty by including airlines and hotels. In the past five years the research has tracked the penetration of loyalty schemes and their impact on behaviour and attitudes in banks / building societies, supermarkets and department stores. Airlines and hotels were included becase of the increasing emphasis on CRM as the holy grail of customer retention in two highly competitive marketplaces.