Offering consumers a better price or a special promotion has been the go-to customer engagement strategy almost since time untold. The problem, however, is that times are changing, and far too many brands are still exclusively leveraging this tactic to attract and retain customer loyalty. The fact is that most consumers today are prioritizing the customer experience more than ever, even over discounts or lower prices.
Simply put, this means that when one brand offers a lower price and another offers a superior customer experience, the better experience will win out most of the tine.
This was the finding of the third annual UK Shopper Experience Study conducted by the IT consultancy Cognizant, a leading business and technology solutions agency.
After surveying over 1,000 shoppers, with the intent of understating current attitudes and perceptions surrounding retailors, Cognizant showed that consumers would willingly pay more for a better customer experience. This can include more convenience, more relevance and more personalization.
“Today’s shoppers – who use the online, mobile and in-store options available to them – know the price they are willing to pay, and the level of service they expect to receive in return,” said Steven Skinner, Senior VP of Retail and Consumer Goods Consulting at Cognizant. “They are adept at researching products, comparing prices and exploring delivery options. They know what they want.”
Specifically, the study also found that 25% want an excellent returns policy, which means the customer experience also needs to extend to include consumer interactions even after the sale ends. Consumers want this “after-sale support.”
The increasing integration of social media is also playing a new role. More than half of consumers (57%) now write online product reviews. This further solidifies the idea that the post-transactional customer experience must now be thoroughly considered.
The study also found brand loyalty to be a significant factor in influencing customer behavior.
More than 16%, for instance, stated that they would pay higher prices based on their loyalty towards a particular brand. Loyalty programs are also an influence, as 32% of UK consumers visit shops because of the points they can earn. Cognizant also showed that a full 85% of UK shoppers belong to at least one loyalty program, while 32% are members of between three and five.