- Findings include complex nature of brand trust and loyalty in the the experience economy
- Companies that earn trust also earn access to valuable customer feedback, other data
SALT LAKE CITY (October 9, 2018) — A new study from customer experience (CX) intelligence leader InMoment reveals how brands can earn and maintain the loyalty and trust of their customers in today’s experience-driven economy.
The 2018 Retail Trends Report surveyed 1,300 U.S. consumers to understand the state of trust and loyalty, as well as customer perception about retailers’ attempts to offer more experiences versus simple transactions. Three key themes emerged from the study:
- Trust and mistrust are earned: A whopping 88 percent of respondents said they believe trust is extremely important when deciding where to shop, but the report reveals that trust is about more than data and security. Fifty-five percent of respondents say brands can earn their trust by delivering what they promised, and another 19 percent say brands must deliver consistent experiences to earn trust. Keeping data safe came in at just 13 percent, and other factors like personalization and supporting shared values registered only in the single digits.
- Loyalty is alive, and well… complicated: Even with endless access to supply and choice, brand loyalty is far from dead. Eighty-three percent of consumers consider themselves about the same or more loyal to brands than their parents, and nearly 30 percent of Millennials see themselves as being more loyal than their parents, the highest percentage among all demographics. For consumers who felt they were more loyal than mom and dad, 42 percent said it’s due to doing more research and having first-hand experience, with 35 percent saying its because they have a larger variety of choices.
- Loyalty and trust result in more customer feedback: Customers who feel high levels of trust and loyalty said they are significantly more likely to share ratings (in the 90 percent range for both) and detailed commentary (both exceeded 70 percent) about their experiences. Conversations captured directly from customers can serve as early warning signals for product and marketing campaign failures, indicate emerging opportunities for competitive differentiation, and help brands allocate resources to the most essential areas of their business.
- Consumers crave experiences, not just purchases: More than half of consumers (53 percent) said that their “recent, enjoyable” shopping experience was in a store. Product quality was ranked the top retail interaction that elevates a mere purchase to an “experience,” with personalized treatment in store following at 30 percent.
“There are many myths about today’s empowered customer,” said Brennan Wilkie, SVP CX Strategy at InMoment. “We hear that they’re stingy with their data, fickle with their dollars, and easily swayed by gimmicks and perennial sales. The data in this study, however, tell a very different story. Today’s customers — Millennials included — are more than willing to trust and happy to reward brands that keep their promises. They will open their hearts and wallets, serve as advocates, and share their increasingly valuable feedback and other data. However just like any other relationship, trust and loyalty must be earned. This is the mandate of every retailer, of every brand, of every industry.”
To download the full report with all of the findings, click here.
InMoment™, the leading cloud-based customer experience (CX) intelligence platform, arms brands with compelling customer insights to drive high-value business decisions and relationships with both customers and employees. The company’s industry-leading, data science-infused Customer Feedback Management platform, the CX Intelligence Cloud™ powers a full suite of Voice of Customer (VoC), Voice of Employee (VoE), and Employee Engagement solutions. InMoment provides innovative solutions and strategic support services to more than 425 leading brands across 95 countries. For more information, visit http://www.inmoment.com/.