UPDATED 05:43 EDT / APRIL 12 2012

Quality and Support – The Key to Customer Loyalty [REPORT]

April has been deemed customer loyalty month, in case you were wondering. To highlight customer loyalty, ClickFox revealed the results of a recent study on the relationship between customer loyalty and company performance. As it turns out, the lion’s share of consumers indicate quality and service drives loyalty for certain products.

According to the report, consumers appreciate the courtesy and the willingness of the company to constantly interact with customers via its product support services. At the same time, it became clear that many customers are willing to remain loyal to a particular brand if the quality of that brand is up to par.

About 88 percent of respondents specified that the quality of a brand is key factor in deciding loyalty, whereas 72 percent indicated customer service is the main deciding factor.  And 48 percent said their first purchase of a product or starting a service is an important factor for brands to gain loyalty from customers. About 87 percent said they would stick to a brand and are willing to pay more because of their brand value.

“Customers are demanding quality products and top-notch customer service, and they’re willing to pay for it,” said Marco Pacelli, CEO of ClickFox. “Companies need to differentiate themselves by producing quality products and exceptional customer experiences — it is up to them to deliver on their promises by regularly evaluating customer satisfaction and making decisions in real time.”

Apple topped the list as the most loved brand, followed by Coca-Cola, Google and Amazon. In terms of categories, food and beverage companies (about 58 percent) found themselves with more loyal consumers. Technology and gadget providers took the second place with 51 percent, health and fitness companies with 44 percent, followed by wireless providers (43 percent).

Reputation – Easy to Mess Up, Difficult to Fix

ClickFox’s study shows that consumers still appreciate good old courtesy in dealing with a business.

These findings were reiterated in another survey from Transactis, which notes that among 1,000 UK consumers, 83 percent still prefer buying products from a firm if the company is appropriately handling their data. Almost all respondents (about 95 percent) said they would cut ties with a company if they mishandle their personal data.

“The careful and intelligent use of personal data engenders consumer confidence and, ultimately, trust – allowing a stronger relationship with a customer to flourish,” said Michael Green, Insight Director at Transactis. “When companies alienate customers and lose their confidence by handling personal details irresponsibly, however, consumer punishment is harsh and damaging, as they turn their back on a brand they feel has abused their trust. Firms that fail to learn that lesson will feel the financial impact in a very direct way.”

Many companies neglect customer loyalty and focus more on attracting new customers,  which is usually a mistake–retaining a customer is usually more profitable than having to capture a new one. Companies are also missing the spot when it comes to raising and rewarding loyalty.

Loyalty Programs Go Social

Companies are now capitalizing on social media’s influence in providing loyalty programs and promotional offers.

Swipely, the provider of social marketing tools for local suppliers, recently launched the Main Street Marketing Manager for brands, helping to understand customer spending behavior through analytics. The tool provides a platform for brands to send targeted campaigns to users and convert existing customers to loyalty customers.

Adobe’s new tools, Adobe Social and Adobe Discover, help brands to determine behavioral patterns based on large amounts of data. The data then can be used for loyalty programs and promotional offers as well.

Business in this sector is growing as social media’s impact continues to boom.  Consumers are finding themselves in more positions of power, forcing businesses to shift tactics and prioritize customer service in fresh ways.  The result is a changing dynamic in the way businesses approach and market to consumers, and while social media integration can be an overwhelming end user experience, it’s effect extends much further than just the website.


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