All You Need to Know About Shoppers and Loyalty
After running a successful e-commerce business for months or even years, you may think you know everything there is to know about your customers and their habits. Who wouldn’t? After all, those who engage in this practice properly know that there is a mountain of metrics and data that can be analysed to break down the habits of practically all shoppers. When it has to do with loyalty to the brand, however, things become a bit more abstract; we are not able to – at least yet – determine what exactly drives customers’ habits in concrete terms. When dealing with disloyalty, however, we have plenty of stats that can paint a clear picture. We’ll break down the findings from a recent MarketTrack survey to explain all you need to know about why customers stick with (and ditch) your brand.
Shoppers Are Not Loyal
You may think that you have secured a loyal customer base – and by normal market forces and relatively speaking, this may be the case – but the reality is that any customer base is quite fluid. We have discovered that 4 out of 5 “loyal” customers will in fact go elsewhere online if there is a better promotion or discount. Many online retailers have seen sudden drops in sales among recurring customers over short periods of time, only for them to return one or two weeks later. This effect is most likely caused by shoppers finding a temporary and better deal elsewhere. Unfortunately and depending on the length of the better deal, some customers may not return ever. Brand loyalty will only go so far with customers; if you are sending out promotional emails that do not offer the best deals or only mention brand loyalty in an indirect fashion, then you are merely pinging noise to them.
Shoppers Buy Unexpectedly Because of Promotions
The e-commerce owner’s dream scenario is one in which a normal shopper arrives at the site to make their normal or expected purchase, only to discover that they will also make an additional, unexpected purchase. This kind of behaviour is more of the exception than the rule, but it occurs often enough to make considerations around it. What causes unexpected purchased to occur in the first place? Shoppers report that approximately 80 percent of their unexpected purchases happen whenever they discover a promotion. In addition to this, two-thirds of the unexpected purchases made only occur from information obtained in-store or on-site. This should definitely convince you of the need to always promote your specials not just through social media and paid ads, but also in clear sight on your website.
Shoppers Will Come to You First
A bit of good news: shoppers who have demonstrated a propensity to buy from you will always check with your brand first unless they have recently had a bad experience. From damaged goods to slow shipping, these can trigger a shopper to look elsewhere, so it’s important to always be proactive in these circumstances. As long as your shoppers are satisfied with your services, competitors will likely be doing nothing more than pinging noise to them if they try to advertise or procure their business. When you combine this with the fact that two-thirds of shoppers feel they are getting a better deal online when compared to brick and mortar, retaining loyalty among your existing customers is feasible – but not guaranteed.