NEW YORK — IBM unveiled a new survey of 19,000 U.S. consumers which found that across multiple retail segments, only 21 percent of consumers are advocates for their primary retailers. The study, titled, "Why Advocacy Matters to Retailers," provides an in-depth analysis of what makes consumers loyal and the specific financial benefits that loyalty delivers for retailers.
The study surveyed consumers about retailers in the grocery, large-format apparel, mall-based specialty apparel, drugstore and online retailer segments. Across all these segments, customer experience and product range emerged as the top drivers of advocacy. Those retailers who integrated customer-focused initiatives throughout their businesses have a greater number of advocates and often outperform their competitors.
The study defines advocates as customers who recommend their retailer to their friends and family, would increase their purchase amount if their retailer offered products found at other stores and would stay with their retailer even if another retailer offered a competitive product.
"Customers who are not loyal to your brand will be loyal to price," said Fred Balboni, global retail industry leader for IBM Global Business Services. "Customer advocacy often rewards retailers with financial benefit. Our research found advocates spend 17 percent more with their primary retailer than customers who are antagonists. Building an enjoyable and convenient shopping experience, coupled with having the right products available drives advocacy."
