New research reveals that the majority
of consumers are in less committed relationships with their favourite retailers
than ever before, with only 8% of them feeling ‘devoted’ towards a particular
retail brand.
The research was conducted by
Professor Ron Rogge from the University of Rochester in the USA. He looked at
retail customers using seven core relationship criteria: recognition, rewards,
reciprocity, reliability, respect, trust, and communication.
Using these criteria, he was able to
create a model based on Sternberg’s ‘Triangular Theory of Love’ (see diagram
above).
Sternberg's theory focuses on three
key components of a relationship:
(1) Intimacy (willingness to share
information with a retailer)
(2) Passion (brand enthusiasm)
(3) Commitment (brand loyalty)
The types of relationships analysed
range from ‘empty’ (the least desirable), through to ‘liking’, ‘casual’,
‘romantic’, ‘compassionate’, and ‘devoted’ (the most desirable).
The study found that, at their most
loyal, consumers fall into the ‘devoted’ group and are enthusiastic,
passionate, and committed to a retailer. In addition, devoted customers are the
ones that are most willing to share personal information, opinions and desires
with their favourite brands, and are least likely to defect to competitors.
What does 'devotion' mean in a
business context?
'Devotion' is obviously the most
favourable category for retail brands. The research found that 91% of customers
that fall into the ‘devoted’ group would recommend the brand to others.
This compares to only 9% of customers
in a ‘liking’ relationship, 21% in a ‘casual’ relationship, and 37% in a
‘compassionate’ relationship.
What can retailers do to create
'devoted' customers?
The research findings provide valuable
insight into how retailers can tackle the challenge of driving a deeper
relationship with customers. With only 8% of consumers currently falling into
the ‘devoted’ category, retailers need to find ways to expand this category
across their customer base.
The study found that consumer interest
in loyalty programmes remains high in terms of encouraging spending, with 75%
of shoppers stating that they would be encouraged to shop more with a brand if
it had a loyalty programme.
But the research suggests that loyalty
goes much deeper than traditional reward programmes. Retailers also need to
understand the key drivers that build the more loyal relationships. After all,
loyal consumers will purchase more frequently, spend more money, and become
greater advocates for the particular brand.
The research suggest that to inspire
more ‘devoted’ relationships, retailers should do the following:
Foster brand advocacy: 91% of devoted
customers would recommend a retailer to others, demonstrating the importance of
creating and maintaining devoted customer relationship.
Create stronger rewards programmes:
though consumers in liking and casual relationships have lower expectations
around rewards, 75% of UK consumers would buy more if they were better
rewarded. This emphasises the power of using personalised rewards that
‘surprise and delight’ customers to move them towards a more devoted state.
Take time to understand customers’
needs: 63% would buy more if retailers used their data to understand their
customers’ individual needs and requirements better. By doing this, retailers
can encourage the intimacy required for a devoted relationship.
Build respect and trust amongst
consumers: 54% would buy more if retailers treated them with more respect, and
51% would buy more if they trusted brands more. Trust is key to securing the
commitment that exists where there is devotion.
Communicate better: 51% would buy more
if brands communicated with them better. This highlights the importance of
using better communications and engagement strategies to create the reciprocal
sense of passion present in a devoted relationship.
According to Professor Rogge: “The
study represents ground-breaking work in understanding the key components of
brand loyalty. Our analyses suggested that the same seven basic types of
relationships emerged for both brand and close relationships. In fact, a
majority of respondents approached their relationships with favourite brands in
a very similar manner to how they approached their close relationships.”
“Therefore, developing a strong and
devoted relationship with a brand might not be so different from developing a
strong and caring bond with another person, suggesting that people might buy
with their hearts. This is exciting work, as it not only allows us to better
understand and track the various types of brand loyalty, but it will also
provide retailers with critical insights into targeting the needs and desires
of specific classes of consumers in order to promote greater loyalty.”
REFERENCES
Professor Ronald D Rogge is Associate
Professor of Psychology at the University of Rochester, New York, USA.
For more details about Sternberg’s ‘Triangular
Theory of Love’ visit: https://en.wikipedia.org/wiki/Triangular_theory_of_love