For retailers, 2022 has been a tumultuous year. Record high inflation, continued supply chain issues and the war in Ukraine have contributed to an uncertain economic environment. Jungle Scout found that 77% of consumers have cut spending this year due to inflation.
Building customer loyalty is crucial for success as consumers tighten their wallets. In this article, we’ll explore the benefits of customer loyalty and offer three ways to boost customer retention during an economic downturn.
It can be tempting to cut costs and reduce staff during economic uncertainty. However, many cost-cutting measures hurt the customer experience—driving even the most loyal customers away. Instead, brands should emphasize customer retention.
According to Gartner, 82% of customers prefer to buy from a brand again than choose a new one. But consumers tend to shop around more during uncertain economic times. By focusing on customer relationships, brands can reduce customer acquisition costs and increase lifetime customer value.
Referrals are one of the best ways to acquire new customers—especially when marketing budgets are tight. Criteo found that 68% of shoppers are likely to recommend a company based on a good experience. At the same time, 73% are willing to take a chance on a company with positive reviews.
Loyal customers are more likely to give honest feedback about their experiences. Retailers can also collect more data from repeat customers, which helps inform strategy.
In a competitive environment, customer loyalty is essential for success. Here are three ways retailers can increase customer retention during an economic downturn.
Today, consumers are omnichannel—78% percent of shoppers use multiple channels before making a final purchase. But whether customers are shopping online, on social media or in stores, they expect a seamless experience.
For retailers, a well-designed customer experience is essential for customer retention. Here are a few factors to consider when evaluating the customer journey.
Mobile commerce is on the rise as consumers increasingly rely on their smartphones. According to Google Insights, 59% of shoppers consider a brand’s mobile shopping experience when deciding between brands.
For retailers, optimizing websites and links for smartphones is critical to creating a frictionless customer journey.
Today, customers expect speed and convenience. Self-service options—such as buy online, pick-up in store, curbside pick-up and cashier-less checkouts—give shoppers better control over their shopping journey.
The customer service experience is essential for customer retention. Qualtrics found that 80% of shoppers switched brands after a negative customer experience. For 43% of those surveyed, one negative experience was enough to change brands.
When considering the customer service experience, speed is key. Eighty-three percent of shoppers expect to interact with a sales associate immediately when they contact a company.
Returns can be a headache for retailers. Yet, the return experience is often a missed opportunity to strengthen customer relationships.
Seventy-six percent of first-time consumers who had an “easy” or “very easy” return experience would shop at a retailer again. At the same time, 33% of returning customers will stop shopping with a retailer after a poor return experience.
During economic uncertainty, maximizing value for customers is essential. Last year, Salesforce found that “better deals” was the top reason consumers switched brands.
But steep discounts are unsustainable. The following are some ways retailers can deliver value beyond price cuts:
Loyalty programs are vital to customer retention. Today, 56% of consumers are more likely to buy from a brand that has a loyalty program. In addition to increasing revenue, loyalty programs provide retailers with first-hand customer data.
But establishing a loyalty program does not guarantee that customers will use it. On average, two-thirds of shoppers only redeem loyalty rewards once every three months.
Here are some strategies to enhance your loyalty program:
Salesfloor is an all-in-one customer experience platform that combines human connection with the power of AI. Today, over 50,000 store employees and customer service agents use Salesfloor to deliver a seamless customer experience.
With tools for clienteling and virtual shopping, Salesfloor connects your online and offline channels. And with predictive customer insights, sales associates provide customers with a more personalized experience.
Book a demo today to see how Salesfloor helps retailers supercharge customer loyalty.