Indianapolis, IN, Oct. 28--A national customer loyalty study by Indianapolis-based Walker Information has found that while 90 percent of consumers say they are satisfied with their retail store, fewer than half are truly loyal to that store, as reported by the Indianapolis Star. And many are ready to switch for the smallest of reasons.
The findings of The Walker Loyalty Report, which focused on the retail sectors of consumer electronics, home improvement and drugstores, will be released Monday.
The study of more than 3,600 consumers sheds light on just how tough it is to win the heart of a shopper, especially in these segments of the retail industry dominated by big boxes.
"Customers are acknowledging it's pretty easy to shop at these retailers, but they don't get the impression these retailers are demonstrating a real caring attitude or want customers to feel special in the store," said Bob Kizer, group vice president of client services at Walker. "(Therefore), there is a lot of transparent switching going on out there."
The study's numbers show that in all three retail sectors, an average of 45 percent of consumers are truly loyal -- meaning they wouldn't switch to a competitor. Forty-three percent are trapped, which means they would like to switch but believe all retailers are the same.
And the final 12 percent are high-risk, meaning they are not emotionally attached to a store and are likely to shop around.
Walker's study got to the core of what drives a truly loyal customer and what retailers can do to avoid the superficial switching. It found consumers will be more loyal if:
-- They feel the stores are customer-centric or focused on them.
-- The brand and reputation of the retailer is high.
-- The quality of the shopping experience makes it easy to find products and easy to get in and out of the store quickly.
-- Sales representatives are professional and helpful.
In fact, four in 10 shoppers said they would consider switching stores -- even if the products were higher-priced -- if the customer service was better.
"What makes me most loyal to a store (is) personal service," said Mike Buschmann, an Indianapolis shopper. "Not the bank reading my name off the screen and calling me by name, but real personal involvement."
Buschmann isn't a big fan of the big boxes, which seem to lack that service.
"We are only saturated with inconvenience stores," he said. "The very last thing I want to do is spend half a day hiking a half mile in from the parking lot, hike another half mile inside the big box and stand in line for a half hour. It isn't just all about price. It's about service, too."
Retailers sometimes forget that, as they seek to get everything else right, Kizer said.
"Retailers do a great job of merchandising, building the right kinds of stores in the right locations and putting the right merchandise on the shelves," he said. "There still is this overall attitude that is missing from the shopping experience -- where you really feel like they want you in the store."
The least loyal consumers, according to the study, were found in the home improvement segment, which had 47 percent trapped and 11 percent high-risk. Forty-two percent are truly loyal.
