Loyalty across channels (Part 1)

Customer loyalty specialist ICLP has recently published their latest study on customers who are active in several channels.

Consumer behaviour is changing at breakneck speed, thanks to rapid technological development and the popularity of social media. Brands are also present in more places and brand related content is also everywhere. All of these factors have led to a change in the formerly linear journey of customers purchasing goods: it is now more important for retailers than ever before to have 360-degree knowledge of their customers, so that they stay in touch with them and make them purchase in all channels. Successful retailers need a multichannel strategy now, to which customer relations and loyalty programmes have to be accommodated. Customers can now decide where, when and how to choose and buy products or services – and the same is true for sharing their experiences of the process with other consumers. This means that retail has to be present throughout the whole customer journey, and this presence needs to be efficient and characteristic also in the phases before and after the purchase. Retailers have to get to know and understand consumers better, and based on this knowledge they have to develop and offer customised loyalty programmes to them. Luckily retail now has the opportunity to analyse lots of customer data and use them to build loyalty, integrating loyalty schemes into their multichannel strategies. Multichannel strategy is a big opportunity but at the same time a major challenge as well, especially for international chains: they will only be able to convey their messages successfully if they are familiar with special regional and local characteristics. For instance in the USA consumers tend to communicate via Facebook, Twitter and Whatsapp but the Chinese prefer local versions of these, Weibo and WeChat. Retailers must also realise which tasks to do centrally (e.g. data collection and analysis) and which are those better taken care of by local teams (e.g. making offers to customers across channels and regions). Nowadays it is a must for retailers to be present in social media. Smartphones constitute the only channel that is present always and everywhere, no matter what consumers are doing. This makes smartphones different from all other channels in loyalty building too. Consumers want the same level of service and personality in all channels, from physical stores to digital platforms. In the study ICLP identified 5 basic customer needs that are characteristic of all markets and channels. 1. The key role of smartphones – the majority of consumers buy in physical stores, but information and offers via mobile are important to them too. 2. Shopping experience throughout the whole customer journey – being in touch constantly is crucial in building loyalty 3. Involvement, participation, interaction – relevant, exciting and easy-to-share content has to be offered to consumers. 4. Situation dependent, relevant content – these give added value to consumers. 5. Real personality – ensures customers experience and build long-term loyalty.

(To be continued)