Wednesday, 6 June 2012

Dart’s data: the customer loyalty issue

The main feature of Direct Commerce’s June issue focuses on marketing and customer loyalty. We explore how to implement post-purchase programmes and how to make the best use of analytics to keep customers coming back as well as much, much more.

If you can’t wait until 8th June, when the next issue hits desks, this week’s edition of Dart’s Data should help satisfy your loyalty-stats cravings in the meantime:

• Research from database marketing firm Transactis has shown that more than two-thirds of British consumers have stopped doing business with a company and turned to a competitor because they felt the firm had mishandled their personal data and could no longer be trusted.

The study, which surveyed more than 1,000 British consumers, also highlights that 69 percent of respondents have terminated their affiliation with a company within the last three years because it handled their private details irresponsibly, getting them wrong, passing them to third parties, failing to keep them secure or abusing their trust.
The report found that 95 percent of respondents stated they would be “very inclined” to switch to a competitor if they feel a company they are dealing with is being irresponsible with their personal details.

On the flipside, the survey found that if a business is seen to deal responsibly with personal data and provides a good service, 83 percent of consumers say they would keep buying from that company, while 76 percent of respondents say if a business is using their personal details to tailor services and offers they are more likely to continue buying from that company than its competitors.

In a sector breakdown of the research results, supermarkets are rated most highly among consumers with 84 percent rating them “good” or “very good” in terms of handling personal details responsibly and using them to provide better and more personalised services and offers. Banks (81 percent), online retailers (80 percent) and mobile phone suppliers (74 percent) also ranked well amongst British consumers, while the holiday/hotel/travel sector is one of the lowest performing categories with 45 percent of consumers rating them as either “good” or “very good”.

The study also found that women are generally harsher than men with companies they feel have improperly handled their personal information. Further, the older the consumer, the less tolerant they are of companies they see mishnadling their personal data, the most laid back are those aged 25 to 34.

• Showing just how giving superb service can have a positive impact on loyalty no matter what the price of the item, online marketing agency Leapfrogg found that 61 percent of consumers buying premium products and services say they will not reduce their online spending in 2012. Almost a third (30 percent) of respondents said they will purchase more online due to good service and increased confidence in using online channels this year. While 21 percent of consumers said that quality of product and great service is enough of a pull to encourage a luxury spend. To remain competitive, Leapfrogg noted, premium brands do not need to rely on heavy discounting or voucher codes, but will need to ensure that the communication of product information and an excellent shopping experience is provided.--JD

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