Marketers may assume that once they’d snagged a customer, they can count on continued purchases. But that’s not always the case. Consumers have all sorts of reasons for purchasing and repurchasing products. And it turns out that consumers also display a range of loyalty behavior that is somewhat correlated with industry type.
According to Epsilon, consumers say they are likely to repurchase a product from a marketer at the following rates:
- TV 51%
- Computer 49%
- Hotel 56%
- Auto insurance 58%
- Mobile 42%
- Communication services 39%
- Credit cards 27%
The low rate of loyalty in industries like communications services and credit cards is a call to action. Epsilon analysts point out that there may be a disconnect between what marketers have promised in their communications and what consumers are actually experiencing as they do business with these companies. Low loyalty numbers are a cause for concern because consumers who will not repurchase from a company will also probably not recommend the company to friends.
At the same time, consumers are relying on product review websites or friends and families as key information sources when deciding what they should purchase. But they often do not trust product reviews when there are too few comments or when the site appears to be unregulated. Epsilon analysts believe that marketers can fill the information void for consumers by increasing the quality of their e‑mail and direct mail communications. After the direct communication channel has been established, marketers can then link consumers to objective third-party review sites.
This multi-pronged approach can help marketers reach consumers on many different levels while also facilitating an ‘on-going trust-based relationship’.[Source: Marketing to Evolving Customer Expectations. Epsilon.com. May 2010. Web. 3 Jun. 2010]