Building Loyalty: Why Every Purchase & Interaction Has Increasing Value (New Report)

Mr. Owl confidently proclaimed it takes three licks to get to the Tootsie Roll center of a Tootsie Pop. And while Mr. Owl’s individual methodology could be questioned — just as the actual number may be one that “the world may never know” — asking an impossible question like “how many licks” is still as vital as ever.

I thought of that impossible question when I read Bizrate Insights’ recent “The State of Customer Loyalty” study, particularly in its findings that 67% of consumers say it takes at least four purchases to consider themselves loyal to a brand. This, the study says, “means every interaction and nuance in the customer experience matters.”

I guess it’s not how many licks that’s important … so much as it is to make every lick count.

In deciding where to shop, 68% said price and value was the most important factor, followed by high-quality products (56%), free and fast shipping (42%), and excellent customer service (29%). Loyalty programs ranked seventh with 18%, but the study says “what gets people to shop with your brand won’t be exactly what makes them a loyal shopper.”

“Core factors like cost, quality, and free and fast shipping top [that list], but when it comes to true loyalty, consistently delivering on these foundational components is key,” the study says. “1 in 3 consumers say the biggest reason they’re loyal to their favorite brand is that their purchasing experience constantly matches their expectations.”

In order to deliver that experience and consistency, the study recommends utilizing technology to monitor customer sentiment throughout the journey. 81% of the shoppers surveyed said they’re more likely to buy from a brand with a loyalty program than one without one, but “effective loyalty programs go beyond rewards.”

“Beyond the must-have loyalty program benefits, brands can satisfy and delight customers when they go the extra mile through surprise gifts and offers,” the survey says, pointing to the 57% who said offers and gifts are the most wanted perks. “Nearly half say they’d most appreciate upgraded services as an extra program feature (46%), and a third want the erasure of point minimums. … True loyalty requires meaningful touchpoints that make customers feel appreciated, engaged, and rewarded as individuals throughout their entire experience with your brand.”

67% said a personalized experience is somewhat or very important when shopping online, with more than half saying that loyalty programs tailored to their preferences (61%) and special offers based on their shopping habits (57%) were most valued.

(Source: Bizrate Insights)

“When it comes to personalization, consumers seem to be saying it’s important to get the fundamentals right,” the study says. “Prioritize loyalty programs and offers tailored to their individual preferences and behavior, before focusing on other features like virtual try-ons and digital shopping assistants.”

The survey found that the types of personal data most willing to be shared were interests and hobbies (52%), email address (48%), demographics like age, gender, and location (47%), and browsing history on the site (45%).

“Consumers’ willingness to share their interests and hobbies most of all — key pieces of behavioral data — can empower brands and retailers to deliver more personalized and relevant experiences that make customers feel seen, excited, and motivated to re-engage,” the study says.

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