Businesses in the UK need to make a greater effort to retain customer loyalty, new research suggests.
A new report indicates that businesses need to concentrate on improving customer experience, and to pay more attention to their best and most profitable customers, as only 52% of customers are part of a loyalty scheme.
According to the research, 51% of people that have signed up to programmes describe themselves in the retail sector as feeling only ‘fairly satisfied’ with the benefits that businesses offer through schemes, while just 24% in retail, and 13% in financial services, are prepared to describe themselves as feeling ‘very satisfied’.
Antony Jones, CEO of The Logic Group, which launched the survey with Ipsos MORI, believes that as the recession bites, businesses should have a very clear brief: focus on improving the customer experience and building loyalty through schemes that deliver rewards that are actually valued by customers. He said: “The traditional models of engendering loyalty are changing with the economic climate; even in sectors where the barriers to switching brands are significant.”
According to the research, supermarkets, banks and building societies act as a reference point for attitudes to loyalty with 72% of customers feeling loyal to at least one company or organisation operating in these sectors.
Some 57% of business leaders say they intend to focus more on nurturing and keeping existing customers over attracting new ones in the future.
© Crimson Business Ltd, 2009