What Determines Customer Loyalty |
| Posted on Oct 30 2009 |
What Determines Customer Loyalty
The research conducted online with 500 nationwide consumers from PAN's Online Consumer Panel. Click here for Full Findings.
Sectors included in the Survey:
- Insurance & Banking
- Consumer Electronics
- Groceries
- DIY/Garden
- Pharmacy/Health Stores
- Telephone/Broadband provider
- Restaurants
- Car Dealerships (buying/servicing)
- Estate Agents:
- Jewellers
- Hair & Beauty Salons
- Clothes
1. Please indicate the 3 main reasons why you would remain a loyal customer?
|
|
Get in & Out quickly
|
Comfort / No hassle
|
Allowed plenty of time
|
Friendly & Knowledgeable Staff
|
A wide choice
|
Just cheapest price
|
Environmental considerations
|
|
Groceries
|
64%
|
36%
|
6%
|
31%
|
76%
|
53%
|
11%
|
|
Hair & Beauty Salons
|
24%
|
69%
|
40%
|
79%
|
6%
|
26%
|
6%
|
|
Consumer Electronics
|
19%
|
19%
|
21%
|
73%
|
62%
|
48%
|
14%
|
|
DIY/Garden
|
27%
|
23%
|
18%
|
61%
|
49%
|
44%
|
18%
|
|
White Goods
|
22%
|
22%
|
19%
|
59%
|
51%
|
45%
|
22%
|
|
Pharmacy/Health Store
|
33%
|
29%
|
15%
|
82%
|
47%
|
36%
|
7%
|
|
Car buying
|
6%
|
28%
|
45%
|
75%
|
37%
|
49%
|
22%
|
|
Jewellers
|
8%
|
34%
|
41%
|
61%
|
57%
|
38%
|
2%
|
|
Clothes
|
18%
|
51%
|
35%
|
36%
|
69%
|
49%
|
4%
|
2. How often do consumers look for alternatives?
Looking at the overall picture, 60% of customers investigate alternatives companies, stores or services at least once a year.
86% of consumers stated that they look for alternatives stores for their Grocery shopping at least once a year. The other sectors most prone to switching is Insurance, 72%. Highest levels of inertia are evident in the Banking sector where 48% of consumers stated that they had never looked for an alternative. Other low switching sectors include Hair & Beauty and Car Sales & Servicing with 24% and 22% Never looking for an alternative.
3. Taking account of time & hassle involved, how much cheaper would a new company/supplier need to be before you would switch to them?
The most price sensitive sectors are: (based on shoppers switching on a 10% price difference):
• Groceries, 65%
• Restaurants, 53%
• Insurance 51%
4. Please indicate the 3 things you want from a shopping experience?
As can be see below, what is important to customers when shopping varies between sector. Taken as a whole, the 3 most important factors are:
• Friendly & Knowledgeable staff, 62%
• Choice, 50%
• Just Cheapest Price, 43%
For Grocery shopping an adequate choice of products in key with ‘Getting In and Out Quickly’also very important to shoppers. For Clothing shopping and salons Comfort and a Hassle free experience is essential, whole consumers purchasing Cars value being allowed sufficient time.
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