Consumers today are becoming less loyal to businesses and more interested in which shops offer the best deals, according to a new report.
The study, conducted over four years by The Logic Group, reveals that economic uncertainty is creating ‘promiscuous customers’. Customers tend to shop around for the best deals, and often hold several loyalty scheme memberships.
The rise of the internet is having an impact. Today, online shopping is more popular in the UK than anywhere else in the world, with the average consumer spending over £1000 online in a year. Even when out on the high street, 42% say they want instant rewards, with 16% admitting they have used their mobile phone to compare prices online whilst they are out shopping.
“The definition of customer loyalty has undergone a fundamental change in the past four years of economic uncertainty, and the Internet has necessitated a rethink of customer engagement strategies,” says Jon Worley, Director of Customer Interactions at The Logic Group. “Promiscuity on part of the consumer is a reflection of the perceived value of their interaction with merchants and brands. Consumers want more bang for their buck.”
For small businesses. the results highlight not only the need for competitive pricing, but also the importance of having a website. Have you noticed a change in customer loyalty over the past few years? Share your thoughts in the comment box below.