Why retailers must not take customers’ loyalty for granted
80% Of shoppers annoyed when promos are not aligned online, in-store
DUBAI — Identifying what your customers are looking for in any given situation, and actively making an effort to avoid anything that will dampen their loyalty towards you, is the best recipe for success, new research has shown.
When it comes to brand loyalty, retailers across the UAE have to face more challenges than ever before in meeting customer expectations, a study by Collinson has found. The study revealed that 57 per cent of customers in the UAE would be annoyed if their favourite retailer failed to use their data on preferences and past purchase behaviour to customise the experience, and instead sent generic sales messages that aren’t relevant to them.
In addition, more than 80 per cent of UAE shoppers said that they felt annoyed when retailers they are loyal to offer promotions that are not aligned in-store and online. Also, 81 per cent voiced their irritation when retailers they buy from showed favouritism to new customers by offering them exclusive discounts.
Communication was identified as a deciding factor in many cases, with 78 per cent of shoppers saying that they were unhappy having missed out on an offer from their favourite brand as a result of them failing to communicate properly. Added to this, 75 per cent of shoppers are irritated if retailers make them search for discounts rather than making them aware of promotions directly.
“In today’s world, where there is so much customer data now available, there is no excuse for letting personalisation slip,” pointed out Sanjit Gill, general manager at Collinson.
“In a competitive environment, a retailer’s failure to continually recognise the preferences of loyal customers — even during sales periods — could cost them that shopper. Using this data to understand the expectations of shoppers and targeting them with relevant offers, experiences and communications that resonate during a sale and beyond, is critical to maintaining long-term customer devotion,” he added.
Anand Kumar, executive director at Abra VM & SD International, also shed light on the importance of sales and festivals, and the opportunity that they present in increasing loyalty and footfall and boosting morale.
“Festivals, promotions, longer weekends all have a significantly positive impact in terms of customers being encouraged to visit malls and shop. They also continue to bring in tourists; however, for retailers, events such as White Friday are more of a stock clearance, and due to the increased competition, retailers are not necessarily making historic margins during such sales. Again, for the customers, its great psychologically, and they are always happier when they think that they got a good deal; and, for the brands, it’s the best way to clear out stocks.”