Brand loyalty is a thing of the past, says research
By Caroline Baldwin - Aug 15th 2017, 15:56
Consumers are ditching their favourite brands in favour of speed and convenience, concluded new research from Salmon.
The research, which surveyed over 6,000 consumers across the UK, US and Benelux, stated that 88% of shoppers believe speed of delivery is more important to them than the brand they are ordering (78%).
Over half (57%) of shoppers think they are more digitally advanced than some retailers and 60% say they would be more likely to shop with a retailer if they were more digitally innovative.
Meanwhile, almost a quarter of consumers are “digitally obsessed” and make nearly all of their purchases online and 45% are already using or likely to use voice technologies like Amazon Echo or Google Home in the next 12 months.
“Loyalty is a complex thing. Across all sectors, we’re seeing fewer people favouring and remaining strongly aligned to certain brands and companies. This is especially prevalent in digital commerce – where the consumer focus on finding the lowest prices and fastest delivery doesn’t lend itself to being loyal to a certain product,” said Hugh Fletcher, global head of consultancy and innovation at Salmon.
Nearly two-thirds of consumers (60%) believe all online retailers should offer same-day delivery, compared to last year’s research when the average expected delivery time was 2.6 days.
“It is this ‘experience’ that drives loyalty and will be the difference between being a leader in digital commerce and being left behind,” added Fletcher. “What this means, however, is that retailers need to offer consumers a host of convenient services and harness innovative technologies in the process if they are going to attract and retain customers’ attention. As consumers are becoming more open to trying new technologies – or expect to in the coming months – retailers need to put in the ground work from now if they are to meet high expectations.”Reed Exhibitions Limited 2017.
Massmart appoints new CEO, but shares fall on warning earnings will halve
24/05/2019 - 08:39
Shares in Massmart, which owns the Game and Makro chains, fell 12.5% to R68.24 in early trade on Thursday after the retailer said earnings in the six months to June could more than halve.
South Africans are spending less on their weekly shopping trip
23/05/2019 - 09:44
Tiger Brands, which carries brands including Koo canned foods, All Gold, and Tastic rice, said that revenue from continuing operations fell 2% to R15.4 billion in the interim period.
Bidcorp expects higher food inflation in SA
23/05/2019 - 09:16
Global food-services group Bidcorp expects rising food price inflation in SA, where food producers and retailers are grappling with higher costs and low selling price increases.
Nike and Adidas join 173 US shoe retailers in call to avoid ‘catastrophic’ tariffs
21/05/2019 - 12:23
Nike, Adidas, and other footwear giants urged President Donald Trump to reconsider his tariffs on shoes made in China, saying the policy would be “catastrophic for our consumers, our companies and the American economy as a whole”.
Rhodes Food Group reports slight decline in net profit
21/05/2019 - 09:59
Rhodes Food Group, which makes Bull Brand corned meat and Bisto gravies, says profit after tax was slightly down in the six months to end-March despite better sales.