The changing face of loyalty
COVID-19 has changed consumer behaviour in a number of ways. One example of such behavioural change is the reduction in habitual loyalty; consumers are trying brands they have never tried before. Consumers have given a number of reasons for this ‘loyalty mix up’, with in-store and online availability, convenience and value (better prices/promotions, shipping/delivery costs and larger package sizes) being the strongest stated drivers of new brand purchases.
In line with these practical explanations for brand switching, many marketeers will typically offer transactional and pragmatic advice for improving customer loyalty. For instance, closely monitoring when consumers are migrating brands or retailers, ensuring product or service availability, investing in personalisation, improving customer service and conveying value for money by offering benefits and promotions. Whilst many consumers will undoubtedly be seeking value for money given unemployment levels and the wider economic situation in the short-term, brands and retailers looking at the longer-term picture need to understand that COVID-19 has threatened to reduce the effectiveness of traditional loyalty schemes based on points and coupons.
MISSION Agency, Innovation Bubble delve into the psychology behind consumer loyalty in a post COVID-19 era. Read article here.