Marketing

3 ways to build stronger brand loyalty in today’s digital world

When it comes to customer acquisition and fostering loyalty retailers need to take advantage of all the digital tools available.

Adobe Stock

May 2, 2023 by Elissa Quinby

If Lowe's and Kohl's reported Q4 earnings are any indication, inflation woes are ongoing and have only deepened for consumers and retailers alike. Shoppers may have stuck with brands out of habit in the past, but it's no longer the case: brand switching has become inevitable, with consumers shopping elsewhere based on price and value.

So, how should retail teams set their sights on customer acquisition and foster loyalty and retention when it's likely that consumers will go anywhere that best fits their needs?

By taking advantage of all the digital tools available to them.

Leveraging data to inform and improve the customer's digital journey

The pressure's on retailers in today's competitive landscape.

Not only do they need to anticipate the customer's needs before they do, but they also need to provide cost-effective solutions. When brands are able to understand how customers interact with them and why, they can optimize and improve the outcomes across all the micro-experiences within the digital journey. And making decisions about where to begin optimizing starts with leveraging data.

There's just one problem: Many retail teams have more data than they know what to do with. While they have plenty of tools to track and collect data, it doesn't serve them if they don't know how to act on it. And in a market where every dollar counts, retailers don't have time to figure out what's working and what's not.

Data doesn't speak on its own. That's why it's becoming increasingly important for retailers to understand KPIs and chart a clear path forward by automatically detecting holes along the digital journey and being able to answer what, where, why and when in minutes vs. days or weeks.

Using digital tools and platforms to shed insights into the customer journey will make doing more with less easy for retailers and allow for optimizing and improving conversion rates, reduce friction points and allow them to understand customers on an individual level.

Deliver a fast, frictionless experience across every channel

Consumer shopping habits are changing, and building the right retail experience is becoming more and more complex. Take, for example, the findings from our 2022 holiday benchmark report: whereas desktop drove the most traffic in past seasons, data shows mobile is becoming the consumer's preferred shopping channel, taking home 72% of digital traffic. Mobile also drove more than half of holiday sales for the first time ever.

Every customer touchpoint matters when building long-term brand loyalty. Whether customers are shopping on mobile, desktop, or at a physical location, retailers must create a truly omnichannel experience, personalize every visit, and optimize across all digital channels to meet customer needs.

One financial services client at Quantum Metric learned just how big of a difference small optimizations can make at critical points in the customer's journey. Wanting loyalty program customers to engage with loyalty benefits, they leveraged customer analytics with personalization and experimentation technology to create a personalized pop-up modal for those customers that directed them to relevant offers. Doing this alone increased their user engagement by 72%.

Take the in-store shopping experience online

Amid the closure of brick-mortar stores and wanting more affordable options, consumers are searching for alternatives and going online to find them. So, what can retailers take from the in-store experience to apply to the digital customer journey? They can recreate the convenience and personalization of in-person shopping in several ways.

For example, a big benefit to shopping in-store is being able to test or try on items and then take them home the same day. But, as digital shopping evolves, retailers can harness today's technologies to match the "touch and feel" retail experience with enhanced imaging, influencer or lifestyle content, buyer reviews, AR features, detailed images, or even offer to send free swatches for items like furniture.

But what about in-store customer service? Here's where retailers can really take the digital shopping experience to the next level. Offer shoppers the option to talk with a sales associate via chat support, where they can receive personalized recommendations, schedule a virtual consultation, or a styling appointment. This is also an opportunity to cross-sell and show customers related products.

In addition, being upfront about shipping costs and timelines go a long way in building trust with shoppers.

Look to digital to thrive through this inflation era

While retailers might be tired of hearing the phrase "do more with less," efficiency will continue to be the name of the game for the rest of 2023 and beyond. For retail teams to survive this period of inflation, they'll need to be flexible in how they approach the customer experience and find ways to cut costs without cutting corners.

Starting on digital tools and platforms and letting those experiences guide other parts of the retail journey is where retailers must focus now to build loyalty in the long term.

About Elissa Quinby

---