In today’s hyper-competitive markets, customer loyalty takes on new importance for numerous reasons. Markets are competitive because in many there are multiple competent vendors with quality products. Also, the number of net new customers is falling to the rate of population growth; for example, if you have a smartphone you might be reluctant to buy another as long as the current one is working.
A recent report in MobileInsider noted that, despite the heaps of evidence supporting the power of mobile as a platform for reaching and engaging consumers, Forrester analyst Thomas Hussan predicts the vast majority of brands will be under investing in mobile this year. So what gives?
I was recently at a CRM user conference and noted down the key pain points identified by retailers. As you might expect, mobile topped the list, representing the most disruptive and transformative opportunity. At the same time, retailers stated they are still struggling with how to capture an accurate 360 view of their customers because “data resides all over the place.”
Is loyalty an outdated notion? Is it passé?
There has been considerable debate on this topic. In fact some even go so far as to say today’s consumers are incapable of being loyal. Empowered by a plethora of choice, emboldened by immediate price comparisons and user ratings, today’s consumers hunt for the best deal, with little affinity to a brand.
Traditional advertising has been under fire for some time. The Wall Street Journal writes that “TV Ad Sales [is] on Shaky Ground”. The article “Spray and Pray: Why Does Anyone Still Buy Advertising?” points out that traditional advertising is spray and pray, where the best you can do is post-fact correlation.