How Retailers Can Use Consumer Disloyalty to Their Advantage
NEW YORK — Today’s consumers are attracted to purchasing paths that lead them to the right product at the right price — wherever that is. That means consumers are less loyal to brands and business more than ever before.
Nielsen Senior Vice President of Retail Product Leadership Julie Currie and Joel Percy, chief strategic consultant at CiValue, a Nielsen Connect Partner, presented a case around how and why retailers should be embracing consumer disloyalty at NRF 2019, Retail’s Big Show.
"In the age of disloyalty, it is the selfless retailer who will win over customers," Currie explained. "Throwing retail allegiances to the wayside, today's retailers must be extremely well informed and tuned into the needs and wants of the individual consumer — stretching beyond their core consumer and beyond targeting the masses. The selfless retailer will do everything they can to meet the needs of the individual consumer, regardless of the fact that they are or aren’t a current customer."
While consumer centricity and personalization in marketing is certainly not new, the application of it toward attracting disloyal consumers is something that should be explored, Percy emphasized, adding that customer-driven marketing strategies can help a retailer become a consumer's first choice.
"For retailers, it all starts with gaining a stronger understanding of the consumer — and that is enabled by stronger data and tools that enables customer-centric decisions across a retailer’s business," he noted. "The key is to enrich consumer relationship by listening, adapting and learning. Empower consumers to provide feedback on offers to enable machine learning. Foster better consumer connections by utilizing the power of open data collaboration. And execute higher quality offerings by truly giving people what they want."
Three takeaways for retailers looking to adapt to this changing reality can:
- Integrate customer data from outside their stores. Fill in the blind spots about the consumers who are shopping their store, as well as those not shopping their store.
- Begin sharing customer level data internally and externally. Democratize data; make customer insights accessible and actionable across the organization.
- Add core items to your offer bank to dramatically grow sales coverage. A retailer's personalization tactic is only as good as the offers they are able to provide to a consumer (also known as a retailer's offer bank). If an offer bank is lower than 70 percent or 80 percent, there is still room to grow.