Consumers recently have become more loyal to the brands they shop. According to a survey from e-commerce marketing platform Yotpo released last November, a quarter said they were more brand loyal than the previous year.
Helping to drive customers to return are a brand's product, price point, customer service and its loyalty program. In recent years, several retailers, including Macy's, Target, H&M and Nordstrom, added new options to their loyalty programs.
But when COVID-19 made its way to the U.S., many consumers strayed from normal shopping patterns and began stockpiling products. Amazon notified customers in March that certain household staples were out of stock as more consumers began shopping online. Amazon said in a statement at the time it was "working around the clock with our selling partners to ensure availability on all of our products, and bring on additional capacity to deliver all of your order."
Ken Morris, industry thought leader: It has been a mixed bag with some retailers rising as others have fallen. Inventory issues have many causes from supply chain interruptions to antiquated legacy systems. Perpetual inventory in real-time has not permeated retail yet. Synchronicity from stores to the web to wholesale are required to compete against Amazon, that is their secret sauce, but technology investments by brick-and-mortar retailers to achieve that end have not been made. Reserving inventory, returns management and frictionless service are the way to win and keep your customers.
Rodger Buyvoets, CEO and founder, Crobox: Many issues the research brings up fall outside of a retailer's scope of control (e.g., product availability). I think retailers have done what they can to meet many of these challenges in a very short time. The real test is to be seen: How will retailers follow up to transition to a digital-first approach? To win the loyalty of their consumers means optimizing the basics – free-returns, priority pick-ups, seamless customer experiences, etc. In the end, the retailers that foster loyalty will be the ones who offer better personalization, transparent communication, and a digital experience that goes above and beyond.
Shep Hyken, Chief Amazement Officer, Shepard Presentations: Some retailers are better than others at connecting with customers. The emotional connection that drives not just repeat business, but loyal repeat business, is more important than ever. Customers need convenience in their lives. Friction in the ordering or delivery process will cause a customer to jump to a competitor. Friction with returns will potentially cause a customer to never come back. The formula is simple, but not necessarily easy. It's a combination of the retailer having what the customer wants, delivering it with good customer service, and creating a convenient experience. Throw in some empathy and you may win the loyalty of your customers.
Kathleen Fischer, Director of Retail Marketing, enVista: Unfortunately, most retailers struggled in recent months as they had to shift to BOPIS or ship from store to meet consumer needs. The key to keeping loyal customers returning is to work to meet and exceed customer expectations but when things go wrong (as they often do), be quick to react and try to fix the problem.
Mark Ryski, founder, CEO and author, HeadCount Corporation: The massive disruption and shift in consumer behavior has caused challenges from end to end, from the supply chain to the end customer. While the disruption and impact on customer experience would make it seem as though retailers have fallen short, in the current context of a pandemic and despite the challenges, some retailers have most certainly stepped-up – deepening loyalty with existing customers and winning over new customers. Now more than ever retailers need to focus on basic execution — honing BOPIS/curbside services, maintaining inventory and offering practical solutions for returns.
(Source: Retail Dive https://www.retaildive.com/news/what-covid-19-did-to-customer-loyalty/583377/ )
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