In today's competitive marketplace, customer loyalty isn't enough to succeed. It is important to grow share of wallet. This is a percentage of consumer spending within a category, as identified by a brand, store or company. Traditional metrics of loyalty program effectiveness, such as customer satisfaction or Net Promoter Scores, can be greatly enhanced by measuring share of wallet.
Too many loyalty programs focus on customer retention rather than getting existing customers to increase spending. So while retailer and consumer packaged goods companies might keep customers, they also could lose much of their share of wallet to competitors
"Customers are not loyal to just your brand. They are not monogamous. Your customers are fooling around on you," said Matthew McNerney, president, Ipsos Loyalty US. "They shop a portfolio of different companies, but we are treating them as though you are the only one that they come to. That's not the way to think...
How Digital Solutions Are Changing Shopper Behavior
Digital technology is changing shopper behavior in several ways. It is redefining the traditional path to purchase in stores. It is creating "Xtreme Shoppers" who seek value wherever they can find it. And it has sparked creative new retail formats that deliver unique experiences.
Those were the key points contained in Future Buy, a new study of U.S. shoppers conducted by GfK Custom Research North America.
There is a new group of value-seeking consumers called "Xtreme Shoppers" who are seizing the new path to purchase. But retail is certainly not standing still just watching all of this go by. Store operators are trying new things.
The linchpin of change has been the Internet which has captured the attention of consumers. Three of four of them use the Internet more than one hour per day, two of three access it at least seven hours every day, and three of ten are online more than 17 hours per day, according to the research.
This is a huge opportunity for marketers and retailers to actually study what impact is this going to have on people's lives...
How Digital Solutions Are Changing Shopper Behavior
