Price comparison apps killing off loyalty – studyby
Further research into the price verses loyalty debate has revealed that the increasing take-up of price comparison apps is threatening brand loyalty on the High Street.
According to TradeDoubler’s survey of 2,500 smartphone users who shop at least once a month online, 52% have at least one performance marketing app on their mobile with price comparison apps proving most popular (32%), followed by coupon/voucher code (23%); loyalty or reward (22%); daily deal/group buying (20%) and cashback apps (19%).
Interestingly, the research also documented the rise of the showrooming trend. Over half of those surveyed (55%) said they have bought a product at a rival retailer after finding a better price via their mobile.
Additionally, the survey showed that mobile discount vouchers and coupons are proving to be a powerful tool for discount-savvy customers with 51% claiming to actively search for vouchers on their phones whilst 44% regularly use the vouchers sent to their mobile.
Dan Cohen, regional director at Tradedoubler, said: “Powerful brands are losing dominance on the high street because they’ve placed too much importance on brand loyalty and not enough on the price, value and variety of channels including mobile apps that shoppers now both expect and demand.
“Bargain hunting has gone mobile and if brands aren’t prepared with relevant and timely campaigns targeting shoppers who have at least one performance marketing app on their smartphone when they are ready to buy, they’re going to lose out.”
TradeDoubler’s findings are the latest to join the price/loyalty debate. A recent Forrester survey revealed that customer experience (CX) is a more powerful customer loyalty driver than price-value perception and accounts for 55.1% of loyalty for banks and 46.5% for retailers.
But Kcom’s survey of over 1,000 British adults revealed the increasing demise of the loyal customer against the rise of the price-hungry savvy shopper with price (26%) and quality (24%) cited as the top two reasons for choosing to return to a company, followed by customer service (16%).
What do you think? Is price or loyalty the more important driver for customers?