Certainly, the loyal shopper is not a myth. Loyal shoppers exist, but is brand loyalty more or less common now than it used to be? That’s what we’ll discuss in this article.
What is a loyal shopper?
A loyal shopper is a consumer that sticks with a brand for one reason or another. That could include:
- Love and attachment to a product. For example, think of how Apple users love their iPhones, Airpods, and Watches.
- Perks that are received through loyalty programs. First started in the airline industry, now many businesses have them and offer rewards to customers for buying fuel, groceries, and other products.
- The willingness of a brand to listen to feedback from consumers.
- Responsiveness and good customer service.
Loyal shoppers still exist but we are also seeing consumers looking around more.
When consumers start shopping around
Loyal shoppers and consumers, in general, may start exploring other brands for a number of reasons. And that can happen more quickly and commonly with emerging brands entering the market, disrupting events like the pandemic and other trends influencing industries.
“Shopper promiscuity is the willingness by shoppers to explore, experiment, and try new things,” said Rebecca Brooks, co-author of “Influencing Shopper Decisions – Unleash the Power of Your Brand to Win Customers.” “It’s leading to a different way that consumers are evaluating brands and even where brand comes into play for them during the shopping decision.”
How behaviors change
Consumer behaviors change and at times we need research so people believe the change is imminent or already happening. Even Google conducted research in 2011 to prove that people used search engines to make shopping decisions. That research was then released in the Zero Moment of Truth publication.
“This was around the idea that people have a path to purchase and where does search come in in that path?” Rebecca said on “Reel Talk: The Customer Insights Show.” “And what we saw was that there was no path. Everybody took very different steps in very different orders. It was a much more complex story than marketers were hoping for.”
While Rebecca and her team were looking at that path, they also noticed an increase in consumers willing to try different products.
“There were a lot of reasons for this,” she said, breaking it down into these areas:
Many markets and companies have stepped up innovation over recent years. Consumers just assume that the next time they’ll buy a new item – say a toaster oven – it will be better than the version they bought 10 years ago.
“Consumers will assume that there have been significant updates in toaster oven technology,” Rebecca said. “So people go out and see what’s new rather than going out and buying the same brand from before.”
And the concept of innovation has spread across many product verticals – from toaster ovens to foods to most everything people can buy.
Read next: Do this to be innovative in business
“Even something simple requires a shopper to look,” Rebecca said. “Brands have gotten much better at innovating and iterating.”
“How consumers come across brands in their shopping process is quite different,” Rebecca said, adding it’s not always consistent even for a specific person.
Some shop on social media for some products but shop elsewhere for other products, for example.
The need to be informed
Rebecca said that her research found that three-fourths of consumers want to be as informed as possible before making a decision. That means they do research, check out brands and see what others are saying about the product.
“What all this chaos has done is create an anxiety-ridden shopper who wants to make sure they are making the best choice,” Rebecca said. “In the past, you’d go to Sears and get a Black + Decker because that was the best product on the market. That was the one everyone went to. But now there are so many challengers and so many options that I might wonder ‘is that the right one?'”
The difference in loyalty by generation
There’s a big difference in the generations born pre-online shopping and post-online shopping, Rebecca said.
“For those growing up post-online shopping – the Gen Zs – their brand loyalty is incredibly low in comparison to Boomers and Gen Xers,” Rebecca said. “Millennials have adapted to this new way of shopping but are still carrying some old traditions and patterns.”
The way generations after Gen Z will think about brand loyalty is going to look very different from older generations, Rebecca said.
How can brands connect with that loyal shopper?
It certainly does start with understanding the market, the target consumer, and how the company’s product can stand out in the vertical.
“Brands have to do very specific research to their category and their consumer to understand how they are thinking,” Rebecca said.
Read next: 7 steps to conduct research successfully
Rebecca calls the phenomenon shopper promiscuity – the act of being open to using other brands and following through with that purchase. But the more brands can truly understand their target consumers, the more likely they are to build that ongoing relationship with loyal shoppers.
Also, understand how loyalty looks in your specific vertical. For example, soda drinkers as a whole are very loyal to specific brands. But certain other verticals have a loyalty rate of under 20 percent. Understanding the industry average can help us understand what is or isn’t a good goal.
“And then where does your brand sit – are people over-indexing or under-indexing when it comes to promiscuity?” Rebecca said.
Understand why people purchase
Consider research including the people who have recently purchased or even returned for another purchase. Ask them about their need, she said, as opposed to questions focused on the brand.
Certainly, it can be harder to keep shoppers loyal to our products than it was in the past, but that doesn’t mean we shouldn’t try understanding them and working on building that ongoing relationship.