LOYALTY VS RELEVANCE.
Ok, all you Customer Experience seekers. So you want to create experiences for the goal of customers being loyal to you, right? Well, try shifting your thinking and investments from Loyalty to Relevance. When you shift your CX thinking and goals from Loyalty to Relevance, loyalty happens.
“If your customer retention relies on “buying” loyalty, it is coming at a high cost — and means that you’re giving up something priceless: your Relevance. 71% of consumers now claim that loyalty incentive-programs don’t make them loyal at all. Instead, people are increasingly buying because of a brand’s relevance to their needs in the moment.
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Your Brand Checklist: The Five P’s of Relevance.
Purpose: Do customers feel that your brand shares and advances THEIR values?
Pride: Do customers feel proud and inspired to use your brand’s products and services?
Partnership: Do customers feel your brand relates to and works well with them?
Protection: Do customers feel secure when doing business with your brand, company, and people?
Personalization: Do customers feel every experience is tailored to their needs and priorities?
Companies are losing $1 trillion in annual revenues to their competitors because they are not consistently serving a customer’s most relevant needs In The Moment.
— Accenture Consumer Research
“In this era of relevance, the greatest roadblock is a company’s lack of willingness to transform their processes, organizations, and mindsets. Consumers choose brands most relevant to them. And they’ll pay a premium. Living businesses — those that achieve this profound degree of relevance — will have pricing power and drive repeat purchases — the ultimate goals of loyalty, now newly attainable.”
Reference: (Accenture; Kantar Retail; SAP, Siegel+Gale, and Shift Thinking, published by Harvard Business Review. Based on survey of 5,000 U.S. consumers covering 50 brands, on brand perception, usage, preference, and advocacy, brand rankings, Net Promoter Scores (NPS).
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