Prior to COVID-19 customers were reluctant to change who they purchased goods or services from. Unless a customer had a very poor experience with one brand they were hesitant to change, even if there were price differences between brands.
But COVID-19 has seen customers become more cavalier in what goods or service they choose now.
“Customers are much more ready to read reviews of a product or service and act according to the comments in their purchase decisions”
While there is no New Zealand research on the customer loyalty impact and, because we were quick to contain the virus, the impact has probably not been as dramatic as, say, the US. McKinsey found that 75% of American shoppers have altered their brand preference. The good news for smaller companies is that customers have shifted to smaller label brands from major stores.
International marketing software company Bazaarvoice reports that 39 percent of consumers worldwide bought products from new brands this year. Of even more concern was that 88 percent of those first-time purchasers said they intend to continue buying these brands in the future. More than half of US consumers purchased brands they hadn’t previously known about.
And it’s very likely the customer loyalty wobbles that hit overseas are reflected here. One of the biggest issues to affect customer loyalty is, ironically, our embracement now of ecommerce.
Purchasing online or reading reviews of products and services online has steadily grown in recent years. But with COVID-19, because of our inability or concerns to visit stores and small businesses, “digital shopping” has grown exponentially. Customers are able to quickly compare rival businesses - and not just for price.
The ease of using a company’s website or social media to purchase a product is vital. It’s even more important than ever for businesses to constantly review their website or social media to ensure they are robust and customer-friendly. Having a good site seemed to be a “nice to have” before but not anymore.
Customers are much more ready to read reviews of a product or service and act according to the comments in their purchase decisions. You need to constantly check on what they are saying about you. Another issue to impact on customer loyalty was disruptions to supply chains when the pandemic hit. When customers couldn’t find their preferred product at their preferred retailer, they looked for an alternative supplier.
It’s important to review your marketing and advertising in this new world. It needs to reflect the changes your customers face and be responsive to the difficult world they and you now inhabit.
This is an opportunity to provide special offers and discounts to loyal customers. Perhaps look at the idea of a loyalty program?
Customer loyalty may be much more difficult to retain in these times. But by reviewing and rethinking what you have done in the past and seeing what can now be adapted or added could see you not only retain customers but also attract new customers.
These challenges are opportunities for your businesses to be even better.
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