[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/10\/12\/how-to-improve-customer-loyalty-in-retail\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2020\/10\/12\/how-to-improve-customer-loyalty-in-retail\/","headline":"Improve customer loyalty in retail: Forget the sale, focus on experience","name":"Improve customer loyalty in retail: Forget the sale, focus on experience","description":"Improving customer loyalty in retail requires focusing on creating seamless experiences for customers more than offering promotions.","datePublished":"2020-10-12","dateModified":"2024-03-01","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/maria-morais\/#Person","name":"Maria Morais","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/maria-morais\/","identifier":303,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/f7517b2aebfb12fe90d8e9139f071e669e096840b77e6cad33ebc9b27da9c971?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/f7517b2aebfb12fe90d8e9139f071e669e096840b77e6cad33ebc9b27da9c971?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/10\/customer-loyalty-in-retail-1.jpg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/10\/customer-loyalty-in-retail-1.jpg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2020\/10\/12\/how-to-improve-customer-loyalty-in-retail\/","about":["B2C Commerce",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/","name":"Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Commerce","http:\/\/www.wikidata.org\/entity\/Q26643"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/","name":"Customer Experience","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_experience","http:\/\/www.wikidata.org\/entity\/Q984142"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-experience-general\/","name":"Customer Experience","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_experience","http:\/\/www.wikidata.org\/entity\/Q984142"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/retail\/","name":"Retail","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Retail","http:\/\/www.wikidata.org\/entity\/Q126793"]},"Retail Trends, Data, News",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/trends-commerce\/","name":"Trends","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Fad","http:\/\/www.wikidata.org\/entity\/Q787045"]}],"wordCount":737,"keywords":["Customer Experience | CX","Digital Retail","E-commerce","Ethical Retail","Fashion E-commerce"],"articleBody":"On a recent walk in central London on a sunny beautiful morning, I was caught off-guard by a large gathering of people in the distance. Most stores hadn\u2019t opened yet, so I was puzzled. The closer I came, the more I realized that the kerfuffle was a long queue of shoppers waiting their turn to shop at a popular clothing retailer.What was the hubbub all about? Two magic words: clearance sale.Everyone loves a good sale. Yet no matter how steep the redline discount, enticing the buy-one- get-one deal, and motivating the sign screaming “Everything Must Go,” such promotions only fuel short-term customer loyalty.Improving customer loyalty in retail: Why a seamless shopping experience mattersIn theory, the purpose of promotions is rewarding customers who have the potential to spend more and more often. However, decreasing prices for the sake of offering low prices has the opposite effect. Price-sensitive shoppers become the beneficiary, which tightens profit margins and burns the brand’s reputational value over the long run.Customers who exhibit loyal behavior are most likely looking for something more than just a low sale price.They want a bond with a retailer that understands their needs, provides the products they want, offers a seamless and convenient shopping experience, and runs a sustainable operation that aligns with their values.According to PwC, the quality of this relationship is so critical that 59% of people will walk away following several bad experiences and 17% will do the same after just one \u2013 even if they love the brand or product.On the flip side, the benefit of rewarding loyalty is dramatically more advantageous than a good promotion in both the short and long term. Increasing customer retention by as little as 5% through loyalty programs can boost revenue between 25% and 95%, according to Annex Cloud research.Plus, loyal shoppers are more likely to recommend the brands when asked by friends, family members, and acquaintances. They’re also more apt to share their experiences, serving as the perfect vehicle for free, word-of-mouth marketing.      I hate shopping. Here are 5 reasons I stand in line at Sephora (Listen up, retailers)                As countless retailers shutter their physical locations, Sephora is expanding. Learn the brick and mortar retail trends that are contributing to their success.      3 trends driving customer loyalty in retail Over the past few years in the retail industry, we\u2019ve seen the rise of three trends designed to take \u00a0customer loyalty programs to a new level:A shift away from buying products toward delivering experiences customers desire360-degree view of customers to predict and anticipate their behaviorsAdoption of intelligent technologies that collect and analyze customer data in real timeEach of these trends is helping retailers build unprecedented levels of trust with their customers \u2013 they’re better equipped to fulfill and deliver orders consistently and on time.By focusing on these as priorities, they also help ensure every product is high quality and sourced ethically and sustainably.More importantly, brands are beginning to unify their brick-and-mortar stores and online sales channels to create one seamless customer experience.While physical stores will remain an integral part of the shopping experience, their function is changing considerably along with the customer journey as they become more integrated with digital interactions. For example, augmented and virtual reality give customers the ability to try on any color, style, or size, while capturing that information to update their profile.Additionally, beacons, RFIDs, and mobile devices provide real-time product information, inventory availability, and other services to enhance the overall encounter.      Tech trends 2022: The ultimate business leader roundup                Digital fatigue (and search fatigue) is real, which is why we're combining all of the 2022 tech trends into one spot. Bookmark, scan, or deep dive into the topics that most interest you.      Getting closer to the customer via seamless experiencesVirtually everything that happens in retail tends to be adopted by other industries. The concept of catering to two separate worlds \u2013 offline and online \u2013 is undoubtedly one of them.And the reason why this approach is taking off is clear: Extending the web experience to the store allows brands to get closer to the customers \u2013 anytime, anywhere, and on any device.By meeting customers on their terms and providing them with seamless, personalized experiences, retailers can build relationships that last.  The Industry Market Report for Retail lays out the roadmap for success. The question is: will you follow it or fall behind?"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2020","item":"https:\/\/www.the-future-of-commerce.com\/2020\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"10","item":"https:\/\/www.the-future-of-commerce.com\/2020\/\/10\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"12","item":"https:\/\/www.the-future-of-commerce.com\/2020\/\/10\/\/12\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Improve customer loyalty in retail: Forget the sale, focus on experience","item":"https:\/\/www.the-future-of-commerce.com\/2020\/10\/12\/how-to-improve-customer-loyalty-in-retail\/#breadcrumbitem"}]}]