Edition 15

Brands expected to help customers ‘find the value’

27th September 2009 By TheWiseMarketer.com published by Pete Clark no comments

The contribution that the overall perception of value makes to customer engagement, loyalty, and profitability has increased in significance in the price-value formula.

Consumers apply this formula (even if it’s subconsciously) to decide which brands to buy, according to the latest Brand Keys Customer Loyalty Engagement Index (CLEI).

The study’s results suggest that shopper consciousness has shifted from a personal responsibility to ferret out the best deals to the brand being expected to take responsibility for providing them. p

According to Robert Passikoff, Brand Keys’ founder and president, “You only have to look back a few months to see that the convergence of the US economic crisis with the holiday season was evident in stores across the nation. Gone were signs offering 15% off. Instead, banners hung from store awnings advertising discounts of 70%, 80% or even 90%.”

But Passikoff warns that the latest CLEI data predicts a shift in the consumer engagement marketplace, if not entirely precipitated by the economy: “We have predicted this for years. This shift represents a move away from consumers thinking about price and toward an expectation of value.”

The US brands that received the highest loyalty and engagement ratings in the 2009 index were:

  • Airlines: JetBlue/Southwest;
  • Automotive: Toyota;
  • Banks: Bank of America;
  • Car rental: Avis;
  • Casual dining: Olive Garden;
  • Coffee: Dunkin’ Donuts;
  • Computers: Apple;
  • Credit cards: Discover;
  • Fuel retail: BP;
  • Luxury hotels: W Hotels;
  • Upscale hotels: Embassy Suites;
  • Mid-scale hotels: Comfort Inn;
  • Economy hotels: Days Inn;
  • Fixed phone service: Verizon;
  • Wireless phone service: Verizon Wireless;
  • Online books & music: Amazon.com;
  • Online brokerage: Scottrade.com;
  • Online travel sites: Expedia.com;
  • Quick-service restaurant: McDonald’s;
  • Clothing catalogue: J. Crew;
  • Clothing retail: J. Crew;
  • Discount retail: Wal-Mart;
  • Department store: Kohl’s;
  • Electronics retail: Best Buy;
  • Office supply retail: Staples;
  • Search engine: Google.

“These winners are the result of consumers having new levels of expectation when it comes to price, and the brand’s perception of value. Wise shoppers won’t be rushing back to pay full price anytime soon. The most significant shift as a result of the recent discount mania is a neutralising of the impact of price,” warned Passikoff. “The buying decision has shifted from price to an even greater emphasis on value.”

But, believe it or not, this can actually be good news for brands. Category drivers are important to understanding brand engagement and getting it right when dealing with today’s consumer. Properly configured, category drivers can tell marketers far more than who a customer is (the typical demographic and attitudinal point-of-view) - they can actually provide the data that brands really want and need: how consumers will actually behave in the real marketplace.

So, while economic news hasn’t been good in recent months, these shifts in consumer attitude are providing an opportunity for brands that pay attention to the customer to offer the differentiation that will tip the scales in their direction. Passikoff concluded: “Value matters more than ever, and for brands that have something real to offer, this may just be the event they have been waiting for.”

More Info: http://www.brandkeys.com

Peter Clark is the Research Director of  Wise Research Ltd. and the publisher of:

Loyalty marketing… for real facts, figures, research, case studies, best practices, practical how-to’s, technologies & examples, The Loyalty Guide III is the world’s most complete report (900+ pages) that covers it all. Costing less than the average conference ticket, details of the report’s contents, chapter samples, pricing, and ordering details are online now at www.TheLoyaltyGuide.com.

Peter Clark, Research Director, Wise Research Ltd.
Publisher of The Wise Marketer, The Loyalty Guide, and Using RFID

Wise Research Ltd UK

Mail: PO Box 505, Graaff-Reinet, Eastern Cape, 6280, South Africa

Head Office:  25 Shiremoor Hill, Merriott, Somerset, TA16 5PH, UK

Registered Office:  1 Cornhill, Ilminster, Somerset, TA19 0AD, UK

Tel: +27 73 072 5746

Fax: +44 845 280 1579                     

Email: [email protected]                

THE LOYALTY GUIDE: The only complete report (900+ pages!) covering customer loyalty techniques, measurement, strategies, principles, best practices, detailed case studies, research, theory, know-how and market-by-market intelligence: http://www.theloyaltyguide.com

 Announcing the world’s most comprehensive guide to maximising customer loyalty and profitability…
 Wise Research Ltd, publisher of the internationally renowned ‘The Wise Marketer’ online news and research service for customer loyalty professionals, is pleased to announce that its research team has recently finished work on the world’s most comprehensive global guide to customer loyalty marketing. Rather than merely updating the first volume, this new report has a vast amount of new material, research, ideas, case studies and practical know-how.  

This 900+ page report’s research programme started in late 2007 and the first copies of The Loyalty Guide III
shipped in mid-2008, with its contents being updated through a readers-only web site well into 2009. This is your chance to make best use of this all-new report by getting your copy hot off the press. Loyal customers – how to identify them, how to keep them and how to get them to spend even more.
Did you know that poor customer engagement is reported to cause up to 75% of lost sales, and that loyal customers buy more, and will often pay more for better service? And did you know that a good increase in customer retention can boost profit by up to 100%? Or that strong customer relationships are a key driver of sustainable business growth?       

More and more marketers are quite rightly focussing on their customer retention and loyalty initiatives. But simply retaining more customers is not the answer - leading loyalty marketers are selectively retaining those who provide most profit and not wasting money on those who don’t. In many cases, up to 70% of customers cost more to serve than they provide in profits. Find out how, by gathering and using loyalty and transactional data cleverly you can stay ahead of the game.  

Yet another goldmine of loyalty information
 The Loyalty Guide III sits side by side with the popular Volume II (published in 2006), providing yet another goldmine of practical know-how and experience you can use to increase the profitability of your customer base. Not being a mere update (it has less than 10% cross-over), it’s right up to date.       

As before, you’ll get online access to working statistical models and formulae that you can use to model how a loyalty programme will affect your company’s profitability. You also get charts, diagrams and dozens of web-based updates for a year after publication. This 900+ page report, bound in two parts, is a comprehensive source of facts, figures, market sizing data, trends, forecasts, and ideas for your proposals, presentations, and project tenders.  

Secrets and strategies for success
The Loyalty Guide III will show new entrants to the market the essential concepts and techniques underlying a successful customer loyalty programme. And it also serves a total guide to global best practices, and signposts the road ahead for even the most experienced relationship marketing specialist. And, if you place your order now, we’ll express-courier the report to you right away.


Leave a Reply

Anti-Spam Quiz:

  • Published by TeleFaction

    Want to know how Return on Behavior can help your business?
  • Tag Cloud