The Changing Face of Customer Loyalty

By Zachary Clark, Account Coordinator 

We all know the old 80/20 rule: 80% of revenues come from 20% of customers. But, recent studies have shown that the paradigm is now shifting to a 50/20 split (50% of revenues coming from 20% of customers). We see a transition from customers who were being extremely brand loyal are now fickle in their purchasing process. 

The entire landscape of customer loyalty is changing.

The old school thought about loyalty is that it was directly tied to habits, whether our own or ones passes on to us. I need a cereal bar, so I buy Quaker Oats. My mom always used Crest toothpaste, so now I use Crest. But, this train of thought of mindless buying is starting to change over to a much more complex process.

With the rise of the internet and the resources available at the click of a button, consumers are now taking more time to evaluate their purchases. For example, although someone may be very brand loyal to Polo shirts, maybe they’ll consider Lacoste now because they compete on price or design. That consumer will check the company’s website, customer reviews, style magazines, etc. until he/she ultimately picks out a shirt.

What it comes down to is: the extra benefit.

Yes, Polo and Lacoste both provide high quality products, but what is that extra benefit they are bringing to the table that consumers want and makes them keep coming back. Take Lowe’s and their “MyLowes” portion of their website. They’re logging customer purchases and having that information readily available for them so they can see what they’ve done/bought it in the past. This allows for customers to feel an affinity towards Lowe’s because they know that the store has what they’re looking for.

These extra benefits can come in many forms and most of the time it’s referred to as content marketing. Blogging the latest trends, sending out a newsletter, giving consumers something more than the services or products you sell.

Think about it yourself. What stores/brands are you brand loyal too? Why? Thinking deeper about how you interact with a store or brand can many times help you develop strategies to better shape your own business efforts.


Direct Marketing News -- “Fickle About Loyalty”

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