Price trumps loyalty for financially-savvy customers

New research has revealed the increasing demise of the loyal customer against the rise of the price-hungry savvy shopper.

According to Kcom’s survey of over 1,000 British adults, price (26%) and quality (24%) are the top two reasons for choosing to return to a company, followed by customer service (16%).

Additionally, nearly two-thirds of consumer respondents (59%) claimed they would be more willing to use an automated service if it guaranteed them a discount. This reflects the growing trend towards websites such as Groupon and Vouchercodes.co.uk, said the study.

But despite this, a whopping 52% of businesses admit they don’t currently offer new or existing customers discount codes as an incentive.

Mark Pritchard from Kcom explained: “In this discount-led era customers are clearly more picky and price driven, because the market has allowed them to be so. This study shows us that if what you’re selling is identical to that of your competition, the primary consumer driver will always be price.

“However, while customer service may not have come out top in the survey, it is still a deciding factor in why people choose one company over another. If you offer a low price, but a customer is unhappy with customer service, they are unlikely to return. Companies need to decide which area they can best compete on, whilst also keeping in mind the other two.”

In terms of customer service, the research found that the number one priority for consumers is being able to speak to a live person, followed by the first person they contact resolving their query and receiving a faster response.

Additionally, 57% said it was vital or very important that a company knows how and when they have interacted with them before, the figures showed.

Anne Marie Forsyth, chief executive of the Customer Contact Association added: “Consumer behaviour is changing rapidly which is creating significant challenges for the customer contact sector but it is also presents a golden opportunity to re-engineer service strategy.”