Driving Customer Loyalty: Perception, Effort and Action - How Brands Create Loyalty and the Elements Customers Value Most - Sitel ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
WHITEPAPER Driving Customer Loyalty: Perception, Effort and Action How Brands Create Loyalty and the Elements Customers Value Most Create Connection. Value Conversation.
In This Whitepaper... Introduction 03 Leading Brands Follow Their Customers 04 The Bottom Line: Bad CX Means Fewer Customers 05 Positive CX Drives Positive Word of Mouth 06 What Consumers Truly Value 07 The Role of CX in Purchasing Decisions 08 What Defines a Positive Customer Experience? 09 How Should Brands Deliver Best-in Class CX? 10 Help Customers Help Themselves with Self-Service 10 Corporate Social Responsibility and Brand Loyalty 11 Where is the Generation Gap? 12 Genders United 14 Omnichannel Across Borders 15 Best-Loved Brands’ Common Denominators 16 Price Versus Value 17 Conclusion 18 Key Findings 19 Further Reading 19 About the Study 20
Introduction
Most organizations understand the importance of attracting and retaining customers.
Business success is built on building customer relationships. So, why do only some
brands enjoy long-term sustainable growth when their goods, products or services
are similar to those of their direct competitors?
The following study is based upon proprietary research conducted and analyzed by
Sitel Group® in the first quarter of 2021. The data was compiled from results of a
survey completed by 2,000 consumers, 1,000 in the U.K. and 1,000 in the U.S.
3 Driving Customer Loyalty: Perception, Effort and Action
Leading Brands Follow
Their Customers
The brands that lead are those that follow their customers.
They prioritize meeting and exceeding customer
expectations. They constantly examine and critique their
ability to deliver a differentiated customer experience
(CX) that moves through loyalty and towards advocacy.
For example, 90% of consumers are willing to pay more
for an identical product or service if it comes with great one extraordinary brand experience to raise their CX
CX1 and 57% of customers loyal to a brand express expectations for all other organizations (regardless of the
that loyalty through spending more.2 Loyalty leads to industry) for the future.4
advocacy. In fact, 60% of customers loyal to a brand use
the same vocabulary to describe the brand with words The rewards for overcoming these challenges are more
often reserved for talking about friends, family and pets.3 than worth the effort. Organizations that lead on CX
And, customers who love a brand enjoy spreading that outperform the market. Over the past decade, while CX
love with their peers. In doing so, these loyal customers leaders have enjoyed a cumulative total return 45 points
become an authentic extension of your marketing team, higher than the S&P 500 index, brands lagging behind
driving positive word of mouth and earning your brand customer expectations have seen a return 76 points lower
more customers. than the broader market.5
Brands should prioritize CX as an area of strategic
90% of consumers are willing investment, because delivering a best-in-class experience
is central to customer loyalty. Brands seeking long-term
to pay more for a product growth must constantly evaluate their brand engagement
strategy to stay one step ahead of their customers’ needs,
or service if it comes with and the experience delivered by their competition.
great CX. Bain & Company research demonstrates that loyalty
leaders grow company revenues roughly 2.5 times as fast
as their industry peers and deliver two to five times the
Most brands recognize the benefits of building customer shareholder returns over the next 10 years.6
loyalty; yet, recognizing and acting on the fundamental
drivers of customer loyalty is a complex task. This As a global leader in customer experience (CX) products
complexity is born from the fact that customers have and solutions, Sitel Group® analyzes changing consumer
never had as many choices as they do today when it needs to support brands in delivering best-in-class CX.
comes to pledging brand allegiance. Technology continues This study examines the findings of research commissioned
disrupting the business landscape, accelerating change, across the U.S. and the U.K. exploring consumers’
spawning new trends, influencing customer behavior and perception of the effort brands are making to create
creating the conditions for new CX breakthroughs. When loyalty, as well as the elements that customers value most
customers discover brands with greater agility and more when pledging loyalty to a brand. This study aims to equip
responsiveness, they find these brands more attractive organizations with the insights they need to take their CX
– resulting in customers leaving existing relationships to the next level, retaining and engaging customers and
with brands. In fact, 73% of consumers say it takes just securing sustainable business growth.
1 https://www.pewresearch.org/internet/fact-sheet/mobile
2 COVID 19 – the CX Impact, Sitel Group, 2020
3 https://www.conversocial.com/hubfs/StateofCX2020.pdf?
4 COVID-19: the CX Index, Sitel Group, 2020
5 https://www.conversocial.com/hubfs/StateofCX2020.pdf?
6 COVID-19: the CX Index, Sitel Group, 2020
4 Driving Customer Loyalty: Perception, Effort and Action
The Bottom Line:
Bad CX Means Fewer Customers
At the beginning of 2021, over a third of consumers had Even when a subpar experience is par for the course,
considered breaking up with a brand. This choice was not one-in-three consumers will still post a review detailing
based upon the brand’s products or services, but because why it failed to meet their expectations. This means that
of what the consumers perceived to be a poor customer although the brand may still be able to count on that
experience. consumer’s business, their ability to generate positive
word of mouth is hindered, limiting their future growth.
This startling statistic means that if you’re not focused
on delivering a CX that aligns with (or exceeds) customer
expectations, you may soon be looking at a significant 1/3 of consumers considered
drop in recurring revenues.
severing ties with a brand
Furthermore, 65% of those customers moved beyond the
consideration stage and took decisive action. Over half because of a poor experience
(58%) that did sever ties also posted a negative review –
either on social media or a review aggregation site – as at the beginning of 2021.
part of the process.
Reasons for Considering Stopping Using a Product or Service
Unfriendly Staff 25%
Slow Service/Response 21%
Poor Value For Money 13%
Inability to Provide 24/7 Support 8%
Unethical Trading Practices,
8%
e.g., Staff Welfare
Poor Website Experience 7%
Lack of Commitment to Social or
6%
Environmental Causes
Poor Mobile Experience 5%
No/Poor Offers and Promotions 4%
No Self-Service Options 4%
0% 5% 10% 15% 20% 25% 30%
5 Driving Customer Loyalty: Perception, Effort and Action
Positive CX Drives
Positive Word of Mouth
As 70% of the U.K.7 and 72% of the U.S.8 adult populations However, capitalizing on this trend for social sharing means
are social media users, sharing experiences has become taking a proactive stance. Brands need to encourage their
part of daily life. Though consumers share negative customers to rate and connect with their CX. For example,
experiences, thankfully they are more likely to tell others 27% of consumers will always share a review, if invited to
when CX meets or exceeds their expectations. Globally, do so, and 28% always leave a review if it is part of an
44% of respondents always and 46% sometimes leave incentive program.
reviews when they receive great service. And as 93% of
consumers say online reviews influence their purchasing
decisions,9 organizations have an opportunity to leverage Online reviews influence 93%
this positive word of mouth to elevate brand awareness
and foster loyalty. of consumers’ purchasing
decisions.
When Do You Leave a Review?
46%
When I Receive Great Service
44%
When I Think a Product is 50%
Good Value for Money 35%
51%
When I Received Poor Service
29%
51%
As Part of an Incentive Program
28%
57%
If the Brand Invites Me to
27%
When I Think a Product or 52%
Service was Poor Value for Money 26%
0% 10% 20% 30% 40% 50% 60%
Sometimes Always
7 https://www.ons.gov.uk/peoplepopulationandcommunity/householdcharacteristics/
homeinternetandsocialmediausage/bulletins/internetaccesshouseholdsandindividuals/2020
8 https://www.pewresearch.org/internet/fact-sheet/social-media/
9 http://learn.podium.com/rs/841-BRM-380/images/2017-SOOR-Infographic.jpg
6 Driving Customer Loyalty: Perception, Effort and Action
What Consumers Truly Value
An overwhelming 97% of respondents believe brands their loyalty upon – what they perceive to be the best
are working to deliver a positive CX. But, only 43% of combination of cost and quality. Organizations need to
all respondents agree this effort is making a tangible understand the result of that equation is different for
difference, meaning that 57% of customers believe brands each business sector and for each brand within it. This
still need to do more to align with their expectations. is illustrated by the fact that within fashion and retail,
respondents cited both Gucci and H&M as brands to which
In isolation, the U.K. data reveals the perceived CX gap they feel loyalty. These two brands could be considered
is even greater with 62% of consumers believing brands at very different points of the fashion spectrum from a
need to be doing more. With competitors constantly cost perspective; yet both brands boast a highly loyal
circling and attempting to lure loyal customers away, customer base.
brands need to dedicate resources to closing this gap if
they want to ensure long-term customer relationships. Whether from U.K. or U.S., female or male, and irrespective
of generation, all groups prioritized value for money as
the key attribute of brand loyalty. U.K. respondents rate
42% say good value for money this more highly than those in the U.S. (46% versus 38%)
and women rate this attribute more highly than men (46%
is the most important driver versus 37%).
of customer loyalty. Beyond value for money, the attributes customers most
closely associate with a brand’s commitment to the
delivery of a positive customer experience are helpful
By far the biggest driver of customer loyalty is the and friendly staff (69%), fast response to questions (53%)
perception that the brand offers good value for money and an easy-to-use website (51%). Across industries,
– cited by 42% of all respondents globally. However, it’s geographies and genders, these are the must haves
important to keep in mind that this doesn’t mean that brands should commit to as the foundation for a best-in-
loyalty is a byproduct of competing on price. Rather, class CX geared for driving customer loyalty.
it proves that consumers are looking for – and base
7 Driving Customer Loyalty: Perception, Effort and Action
Attributes that Demonstrate Commitment to a Positive CX
Helpful and Friendly Staff 69%
Fast Response to Questions 53%
An Easy-to-Use Website 51%
Telephone Staff Able
42%
to Answer Questions
Live Chat Support 40%
Customer Surveys 32%
Locally Based Customer
30%
Service Staff
Using the latest Technology 29%
Publishing Customer
24%
Satisfaction Statistics
Strong Social Media Presence 22%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Consistently meeting customer needs is the foundation on Further, the role of social media’s CX potential should not
which loyalty is built. But, as they move toward achieving be overlooked. Currently 22% of all consumers and 31%
this goal, brands cannot have tunnel vision. This would be of Gen Z respondents feel a strong social media presence
overlooking the potential of emerging customer service is synonymous with a commitment to positive CX. As Gen
channels and opportunities to leverage technology to Z reach financial maturity, expect social media to play a
easily enrich customer interactions. For instance, 40% bigger and more important role in differentiating brands
of all respondents and 47% of millennials believe brands based upon customer experience. Understanding the
committed to meeting their CX expectations should entirety of your potential audience is crucial to guiding
be providing online chat facilitated by live agents for long-term investment in channels.
effective issue resolution without the need to move to
another channel.
The Role of CX in Purchasing Decisions
A positive customer experience influences how consumers
consume – 94% of respondents acknowledge its impact 94% of consumers
and 58% say it is one of the most important factors when
making a purchasing decision. Drilling down further, acknowledge the impact
millennials (63%), Generation X (71%) and U.S. consumers
(65%) are the most likely to let customer experience of a postive CX.
dictate how and with whom they spend their money.
8 Driving Customer Loyalty: Perception, Effort and Action
What Defines a Positive
Customer Experience?
It is clear brands must continue investing in their customer customers are interacting, your people (and technologies)
experience or they risk customers going elsewhere; but must be trained to deliver consistently in an omnichannel
what constitutes a positive customer experience? When environment.
posed this question, respondents rank good service
above all else. It is followed by offers/promotions/ For younger generations, access to 24/7 support is viewed
loyalty programs, with the use of technology taking third as more important than efficient service. It was cited by
place. The ranking was consistent across generations, 55% of millennials and 54% of Gen Z.
geographies and genders.
When asked to elaborate and highlight what they believe
good service to be, U.K. and U.S. respondents agree their 55% of millennials say 24/7
priorities are friendly staff, knowledgeable staff and
efficient service. Each of these elements are part of the support is more important
overall experience that consumers have with your brand,
whether in person, on the phone, via email, through than efficient service.
social media or another channel. Regardless of how your
Most Important Elements of Good Service
71%
Friendly Staff
69%
63%
Knowledgeable Staff
66%
Efficient Service, 54%
e.g. Short Wait Times 54%
48%
24/7 Service Availability
52%
48%
Easy Access to Human Staff
51%
41%
Fast Check Out
47%
0% 10% 20% 30% 40% 50% 60% 70% 80%
U.K. U.S.
9 Driving Customer Loyalty: Perception, Effort and Action
How Should Brands
Deliver Best-in Class CX?
Businesses that want to deliver a differentiated customer and 52% of U.K. consumers still actively seek out brands
experience should begin by ensuring they have an easy- that know how to deliver in digital channels and who are
to-use website. For 74% of respondents globally, this is a prioritizing contactless services, making it the second
priority. As our COVID-19: the CX Impact study published most important aspect of delivering a best-in-class CX.
in May 202010 highlighted, many consumers moved into
digital channels for the first time due to the pandemic and This is also why 47% of consumers want organizations to
are moving away from high-touch experiences in favor integrate chat into their websites for in-the-moment non-
of contactless services such as Buy Online and Pickup In voice support and 44% would like to see brands focus on
Store (BOPIS). One year later, 48% of respondents globally automated services such as chatbots.
Help Customers Help
Themselves with Self-Service
Customers view a brand website as a portal where it’s experience that begins by enabling consumers to help
easy to resolve issues and find the information they need. themselves answer simple questions and address common
This is true whether these answers are supplied by self- issues. You need to provide features such as online FAQs,
service, through conversing directly with an agent using chatbots and cognitive digital assistants. These solutions
chat or leveraging automated features such as chatbots. should be integrated with and visible across internal
Therefore, investing in an intuitive web experience is an systems so customers can complete common tasks
important start. such as confirming delivery status and making product
enquiries, 24/7, without human intervention.
An easy-to-use website is key When it’s not possible to solve an issue through self-
service and contact has to be escalated to a live agent,
for a positive CX. customers expect to be able to stay in the same digital
channel. Just as a customer passes from an IVR to an agent
when using the phone, they want to move from a chatbot
However, this experience will fall short unless an to live chat or messaging when the initial interaction is
organization develops its web services as part of a wider digital.
omnichannel CX strategy. Brands need to be aware that
the routes that customers take on the path to resolution Yet, whatever the live channel, the agent must be well
intersect – moving from channel to channel. If self-service informed in order to deliver a consistent customer
fails to meet a website visitor’s needs, that person needs experience. This is because, as this study underlines,
a seamless continuation in their journey. Whether this when consumers go on these omnichannel journeys, they
continuation is interacting with a chatbot for simple tasks expect to interact with friendly and knowledgeable staff
such as checking an order status, or transitioning to online who prioritize efficient service. Empowering employees
chat with a live agent, or a combination of both, the issue’s with the understanding necessary to meet expectations
resolution is key. in these situations is only possible if they have access
to effective knowledge bases and if all the relevant data
To truly deliver against customer expectations, brands moves from channel to channel with each customer.
must create a strategic omnichannel experience: an
10 https://www.sitel.com/report/covid-19-the-cx-impact/
10 Driving Customer Loyalty: Perception, Effort and ActionCorporate Social Responsibility
and Brand Loyalty
Brand loyalty is experiential. Many Examples of brands failing to connect
consumers prefer brands that stand authentically with social causes are 27% of consumers
for issues aligned to what they common. Yet, when brands get it
believe in themselves. Because right, commitment to a cause feels prefer to buy from
we increasingly see this trend, like a natural step.
we specifically asked consumers brands committed
how these principles affect their When we asked consumers to
purchasing decisions. name brands towards which to social causes.
they felt loyal, a number of U.S.
We asked consumers to what extent consumers highlighted the outdoor
an organization’s commitment to apparel company Patagonia, a
social causes has on their brand Certified B Corporation whose
loyalty. Unsurprisingly, commitment mission is to “save our home
to social causes is a polarizing issue planet.” The company is recognized
for consumers. Globally, 27% of internationally for its commitment
consumers stated they prefer to to authentic product quality and
buy from brands which they know environmental activism, donating
are committed to social causes, 1% of sales annually and contributing
while a fifth (20%) have no interest over $100 million in grants and
in whether a brand supports social in-kind donations since 1985.11
causes or not. Patagonia’s loyal consumers value
this, highlighting the combination
Globally, a third of men prefer to of the brand’s commitment to
buy from brands they know to be the environment and high-quality
committed to social causes, so clothing as the driver behind their
there may be opportunities here for loyalty. One respondent stated,
brands targeting male audiences to “they stand for good causes and
create greater differentiation and offer really high-quality products
foster loyalty by promoting their that last a long time and don’t go out
connection with good causes. of style.”
When considering cause-related If your brand is aligning with social
approaches, organizations should causes, it’s important to ensure that
be mindful of remaining true to their the commitment is not only tangible,
intrinsic brand values. This means but that partners supporting your
aligning with causes where there is a business – particularly around CX
clear brand fit or synergy. Gen Z and delivery – are also on the same page
Gen X are the most likely generations and consistent in these values.
to value brands that are seen to
support social causes, therefore,
any connection made needs to be
authentic if it is to withstand scrutiny
or be perceived as something more
than lips service.
11 https://www.linkedin.com/company/patagonia_2/about/
11 Driving Customer Loyalty: Perception, Effort and ActionWhere is the Generation Gap?
Baby Silent
Questions Gen Z Millennials Gen X
Boomers Generation
Value for Value for Value for Value for Value for
Biggest Driver of Brand Loyalty Money Money Money Money Money
Very Very Very Very Very
Role of CX in Purchasing Decisions Important Important Important Important Important
The Extent to Which Brands are To Some To Some To Some To Some To Some
Perceived to be Trying to Deliver Degree Degree Degree Degree Degree
a Positive CX
Helpful & Helpful & Helpful & Helpful & Helpful &
Friendly Staff Friendly Staff Friendly Staff Friendly Staff Friendly Staff
Indicators of a Positive CX Easy-to-Use Easy-to-Use Fast Response Fast Response Fast Response
Website Website Easy-to-Use Easy-to-Use Telephone Staff
Fast Response Fast Response Website Website
Friendly Staff Friendly Staff Friendly Staff Friendly Staff Friendly Staff
Knowledgeable Knowledgeable Knowledgeable Knowledgeable Knowledgeable
Indicators of Good Service Staff Staff Staff Staff Staff
24/7 Service 24/7 Service Easy Access to Efficient Efficient
Human Staff Service Service
Helpful & Helpful & Helpful & Helpful & Helpful &
Friendly Staff Friendly Staff Friendly Staff Friendly Staff Friendly Staff
Services Brands Should Offer to Easy-to-Use Easy-to-Use Fast Response Fast Response Fast Response
Support a Good CX Website Website Easy-to-Use Easy-to-Use Telephone Staff
Fast Response Fast Response Website Website
Prefer to Buy From Brands
30% 26% 28% 21% 0%
Committed to Social Causes
Considered Stopping Using a
38% 33% 44% 19% 0%
Product or Service in Past 90 Days
Left a Negative Review When
50% 59% 72% 30% 50%
They Stop Using a Product or Service
Always Leave a Review When
47% 43% 50% 33% 23%
They Receive Great Service
12 Driving Customer Loyalty: Perception, Effort and ActionBusinesses often perceive younger generations to have Younger generations appreciate the value of 24/7 service,
very different brand expectations. However, our research while older groups prioritize efficient service. Chat and
shows that the drivers of customer loyalty and attributes messaging features to enable easy digital interaction
perceived to support positive CX are consistent across age with staff are valued across generations, making it a good
groups. starting point for brands looking to elevate their CX in line
with multigenerational expectations.
All respondents felt that value for money was the biggest
driver of their loyalty to a brand, that CX plays a very Gen X is most likely to have considered stopping using a
important part in purchasing decisions and that the product or service in the last 90 days demonstrating the
majority of brands are trying to some degree to deliver a need to consistently deliver good service to this population.
positive customer experience. This group is also most likely to leave negative reviews
when faced with sub-standard customer experience –
over two-thirds (72%) of Gen X left a negative review if
Value for money is the biggest they stopped using a product or service due to poor CX.
driver for brand loyalty. While often overlooked in favor of their millennial siblings,
Gen X is at the peak of its spending power. This generation
is also one of the most likely to base purchasing decisions
To meet customer needs across all generations, brands on a brand’s commitment to corporate social responsibility.
must invest in training and rewarding helpful and friendly
staff and offering an easy-to-use website.
13 Driving Customer Loyalty: Perception, Effort and ActionGenders United
Questions Female Male
Biggest Driver of Brand Loyalty Value for Money Value for Money
Role of CX in Purchasing Decisions Very Important Very Important
The Extent to Which Brands are Perceived to be Trying To a Great Degree To a Some Degree
to Deliver a Positive CX
Helpful & Friendly Staff Helpful & Friendly Staff
Top 3 Indicators of a Positive CX Fast Response Fast Response
Easy-to-Use Website Easy-to-Use Website
Friendly Staff Friendly Staff
Top 3 Indicators of Good Service Knowledgeable Staff Knowledgeable Staff
Efficient Service Efficient Service
Easy-to-Use Website Easy-to-Use Website
Services Brands Should Offer to Support a Good CX Contactless Service Contactless Service
Self-Service Solutions Chat Feature
Prefer to Buy From Brands Committed to Social Causes 24% 30%
Considered Stopping Using a Product or Service in Past 38% 31%
90 Days
Left a Negative Review When They Stop Using a Product 69% 48%
or service
Always Leave a Review When They Receive Great Service 48% 41%
For U.K. and U.S. respondents – and across genders – value Men place greater value on self-service solutions while
for money was the single biggest driver of their loyalty to women place more emphasis on being able to interact
a brand while customer experience also plays a key role in with staff through a chat feature. Leveraging technology
purchasing decisions. to combine self-service solutions with live chat agents
in an omnichannel experience will deliver a best-in-class
Men are more likely than women to feel brands are trying CX that meets the needs of both groups. Also, men are
harder to deliver a positive CX, so brands may want to more likely than women to have considered stopping
reexamine how they engage their female audience. using a product or service in the last 90 days and are
also considerably more likely to leave a negative review
Male and female respondents are in agreement about highlighting the need to deliver consistently good service
the need for a website to be easy to use and for staff to to this group.
be skilled at solving problems and easy to talk to during a
resolution.
14 Driving Customer Loyalty: Perception, Effort and ActionOmnichannel Across Borders
Questions U.K. U.S.
Biggest Driver of Brand Loyalty Value for Money Value for Money
Role of CX in Purchasing Decisions Very Important Very Important
The Extent to Which Brands are Perceived to be Trying To a Great Degree To a Some Degree
to Deliver a Positive CX
Helpful & Friendly Staff Helpful & Friendly Staff
Top 3 Indicators of a Positive CX Fast Response Fast Response
Easy-to-Use Website Easy-to-Use Website
Friendly Staff Friendly Staff
Top 3 Indicators of Good Service Knowledgeable Staff Knowledgeable Staff
Efficient Service Efficient Service
Easy-to-Use Website Easy-to-Use Website
Services Brands Should Offer to Support a Good CX Contactless Service Contactless Service
Chat Feature Self-Service Solutions
Prefer to Buy From Brands Committed to Social Causes 18% 22%
Considered Stopping Using a Product or Service in Past 29% 39%
90 Days
Left a Negative Review When They Stop Using a Product 52% 63%
or service
Always Leave a Review When They Receive Great Service 46% 42%
Across geographies, brands must invest in training helpful ability to escalate to live chat agents would deliver a best-
and friendly staff. Brands should enable their people to in-class experience that delivers against the needs of both
respond quickly to customer inquiries and provide an groups.
easy-to-use website for their customers. U.K. consumers
are looking for the ability to interact digitally with staff U.S. consumers are more likely to have considered
through a chat feature, while U.S. consumers put greater stopping using a product or service in the last 90 days,
emphasis on self-service solutions. An omnichannel and also more likely to have a left a negative review.
strategy that offers both self-service options and the
15 Driving Customer Loyalty: Perception, Effort and ActionBest-Loved Brands’
Common Denominators
As part of our research, we asked consumers to tell us While global brands took the top three spots, respondents
the single brand they feel the greatest loyalty toward. also highlighted regional and local brands, including local
As expected, when we analyzed the results of our research, shops. This demonstrates that regardless of size, any
the world’s largest brands were the most frequently cited business that understands its customers can build a brand
by the respondents. that generates loyalty.
Amazon was the most named brand in our research, Lush, the British cosmetics retailer with a social
called out by 9% of respondents. Amazon sets the bar conscience, was named by more than 1% of U.K.
for all e-commerce brands as consumers are so familiar consumers in our research. It has been 10% employee
with and appreciative of its hassle-free service. For many owned since 2017 and makes all of its products by hand.12
consumers, Amazon has it all. As one respondent put The brand has succeeded in building a loyal customer
it, they are loyal because of its “free and fast delivery, base that intersects digital and physical retail channels.
great customer service, free returns and wide variety of Consumers recognized Lush for its helpful and friendly
products.” staff, commitment to environmental causes and delivery
of products that represent good value for money. As one
Taking second place was Apple, named by 8% of respondent commented, the “staff are always lovely and
respondents. Apple is a genuinely iconic and aspirational helpful, the company is very ethical and the product is
brand called out for the high quality and range of products worth the money.”
available, supported with a commitment to customer
service. As one respondent noted, they are loyal because Launched in 2016, The Ordinary, a skincare brand owned
of their “great products, simple website [and] online 24/7 by beauty world disruptor DECIEM, is building a loyal
help.” customer base through a commitment to transparency
in products and pricing. It’s an approach that resonates
Taking third place in our research was Nike, highlighted by with the respondents in our study who describe the brand
5% of respondents. Nike was praised for its quality, use as “very clear on what the products do….very affordable
of technology in its products and the brand’s ethics. One products, an easy [to understand] website.”
respondent noted their “quality and commitment to social
causes and support of athletes” while another referenced
the brands’ use of “technology in sport, friendly and
young staff [and] environment of the shops.”
12 https://www.linkedin.com/company/lush/about/
16 Driving Customer Loyalty: Perception, Effort and ActionIconic U.K. retailer John Lewis & Partners is another
brand with its people at its heart called out by our U.K.
respondents. The John Lewis Partnership describes itself Brands I feel Most Brands I feel Most
as a “continuing experiment to create a better way of Loyal to U.K. Loyal to U.S.
doing business” and was established on a model of co-
ownership almost 100 years ago.13 Consumers rave about Amazon Amazon
the brand’s “very best customer experience and after- Apple Apple
sales service” and “quality products.”
Nike Nike
Tesco Walmart
The major U.S. telecommunications brand, AT&T, was also
called out and is committed to supporting their customers Samsung Samsung
in achieving “an easier, less complicated life.”14 In our Netflix Target
research, customers highlighted how the brand is helping Asda Tide
them to achieve this goal. “They have never disappointed Sainsbury’s Gucci
me. I trust their service,” says one respondent. They go
Adidas Costco
on to say that “they offer the best services and show their
Boots Verizon
concern towards customer satisfaction. They have the
best service in my opinion.”
Price Versus Value
These real-life examples of customer experience are looking for friendly and helpful service, an easy-to-
highlighted above demonstrate that delivering on price use website and 24/7 support delivered via innovative
and delivering value for money are two very separate technology.
things. One encourages impulse buying (read: price) while
the other likely encourages long-term customer loyalty. Further, in retail environments, fast and free delivery and
Consumers, in general, are loyal to brands they feel deliver returns are also a must. Once brands deliver on these
a good value for money regardless of the price of the must haves, they are able to build an experience around
product or service. When it comes to delivering a positive the unique needs of their specific consumers.
customer experience, across industries, consumers
13 https://www.linkedin.com/company/johnlewisandpartners/about/
14 https://www.linkedin.com/company/att/about/
17 Driving Customer Loyalty: Perception, Effort and ActionConclusion
If you want to become (or remain) a best-loved brand, you must deliver a customer
experience that brings you closer to your customers and takes you further from your
competition.
Across all industries, organizations that gain the greatest loyalty and – crucially –
transform it into advocacy, have a clear and constantly evolving CX strategy. Their
CX moves through loyalty, toward advocacy, creating peer-to-peer word-of-mouth
endorsements which are far more powerful than the best of marketing campaigns.
Whether providing telecom services or skincare products, customer-centric brands
are leading the way by consistently demonstrating the connection between building
long-term customer relationships and boosting their bottom line.
In a business environment where rapidly changing consumer behavior and
technologically driven disruption are norm, the first step on this journey is
understanding what your customers want and expect. Customer loyalty is driven by
the perception that your brand offers good value for money, not necessarily that
it offers the best price. This equation of price versus value varies for each business
sector and for each brand within it.
Increasingly, expectations revolve around a positive CX. A positive customer
experience is one that prioritizes value for money, friendly and knowledgeable
interactions with customer-facing staff and contact center agents and frictionless,
efficient services that save time.
Further, brands must have an easy-to-use website and the option for customers to
self-serve, a priority for consumers as highlighted in our survey.
And, just within the first quarter of 2021, one-in-three consumers have already
contemplated breaking up with a brand simply because of a single poor customer
experience.
If your brand is committing to social causes, ensure these endorsements are tangible
and align with your brand’s values, as well as those of your providers. And for even
greater consumer advocacy, brands have an opportunity to get customers involved
in their social causes, where they feel a part of the journey. This creates further
connection with the brand, driving even greater brand loyalty.
When it comes to brand allegiance, consumers have never had so much choice. This
means there has never been a better time for brands to look at their business through
their customers’ eyes to filter this knowledge into the delivery of a differentiated CX.
18 Driving Customer Loyalty: Perception, Effort and ActionKey Findings
• Leading, best-loved brands take a customer-centric approach. Brands
focused on long-term, sustainable growth generate brand loyalty by
prioritizing meeting and exceeding customers’ expectations. Loyal customers
trust your brand and tend to buy more.
• Better CX equals better loyalty. A positive customer experience isn’t just a
recommendation, it affects your bottom line. According to our research, if
your brand isn’t proactively delivering a best-in-class CX, up to a third of your
customers could be looking to leave.
• Customers want to help themselves. In order to keep customers happy,
brands must put self-service solutions and easy-to-use websites in place to
enable cost efficiencies and drive customer satisfaction.
• Emerging channels are moving into the mainstream. For 40% of all
respondents and 47% of millennials, online chat and messaging with live
agent support are now key ingredients of a positive CX.
• Corporate social responsibility affects brand loyalty. Beyond CX delivery, if
your brand is aligning with social causes, ensure your commitment is tangible
and brand aligned to both your business and your providers.
• Value matters more than price. When it comes to price and value for the
money, customers are loyal to brands who have products or services they
feel are a good value for the money – even if they’re more expensive.
Further Reading
• Industry Snapshots for Driving Customer Loyalty
• The Race for Customer Loyalty: 2021 CX Trends
• COVID-19: the CX Impact
• Disrupt the Competition, Not Your Customers
• 2018 CX Index Survey Report
19 Driving Customer Loyalty: Perception, Effort and ActionAbout the Study
This study examines the results of a survey conducted in January 2021. The
study was completed by 2,000 consumers, 1,000 in the U.K. and 1,000 in the
U.S. All participants were 18 years of age or older. The survey was carried out
on behalf of Sitel Group® by Pollfish.
About Sitel Group®
As a global leader in end-to-end customer experience (CX) products and
solutions, Sitel Group® partners with the world’s best-loved brands, from
Fortune 500 companies to local startups, to design, build and deliver a
competitive edge across all customer touchpoints.
With 100,000 people working across the globe – at home, in contact centers
and within MAXhubs – we securely connect brands with their customers
over 4.5 million times every day in 50+ languages, driving our clients’ digital
CX strategies forward. Powered by our global strength, local expertise and
proprietary technologies, we deliver tailored solutions to fit clients’ needs
through a consultative, customer-centric approach.
EXP+™, the Enterprise Experience Platform from Sitel Group, is a flexible
solution with complete cloud capability, designed to simplify the delivery of
end-to-end CX services, while boosting efficiency, effectiveness and customer
satisfaction. EXP+ creates a robust ecosystem by harnessing the power of four
connected product families: Empower, Engage, Explore and Evolve.
With our award-winning culture built on 35+ years of industry-leading experience
and commitment to improving the employee experience, we improve business
results by pairing innovative design thinking and digital solutions – including
self-service, artificial intelligence (AI), automation and data-driven analytics –
with the expertise, emotion and empathy of our people to Create Connection.
Value Conversation.
Learn more at www.sitel.com and connect with us on Facebook, LinkedIn and
Twitter.
20 Driving Customer Loyalty: Perception, Effort and ActionSitel Group, Sitel and the Sitel mark are registered trademarks of the Sitel Group Companies.
Adidas is the registered trademark of Adidas Group, Amazon is the registered trade mark of Amazon.com, Inc., Apple is the registered trademark of Apple, Inc.,
Asda is the registered trademark of Asda Stores Ltd., AT&T is the registered trademark of AT&T Inc., Boots is the registered trademark of Boots UK Limited,
Costco is the registered trademark of Costco Wholesale Corporation, Gucci is the registered trademark of Guccio Gucci S.p.A., John Lewis & Partners is the
registered trademark of John Lewis Partnership Plc, Lush is the registered trademark of Lush Retail Ltd, Netflix is the registered trademark of Netflix, Inc.,
Sainsbury’s is the registered trademark of J Sainsbury plc, Samsung is the registered trademark of The Samsung Group, Target is the registered trademark of
Target Corporation, Tesco is the registered trademark of Tesco plc, Tide is the registered trademark of Procter & Gamble, Walmart is the registered trademark
of Walmart Inc., Verizon is the registered trademark of Verizon Wireless.
21 Driving Customer Loyalty: Perception, Effort and ActionYou can also read
