Building Brand Loyalty in the “Swipe Right” Era
For eCommerce, the equivalent of “swiping right” is “scrolling down.”
Dating isn’t what it used to be.
It’s a strange analogy. Bear with me.
Gone are the days when our options were limited by where we lived, what high school we went to, or who our friends were. When the main way we got to know someone was through conversation, and the only way to communicate with our crush was by call, letter, or even AOL chat. We’ve said “sayonara” to the time when people were content with their choices because they’d picked the best person around for them— and, the means didn’t exist to know if there was perhaps something better out there.
Modern romance is defined by instant access — to a person via a dating app, to their story via social media, and to other “fish in the sea” by swiping left or right. Singles still look for someone that matches their values — but Facebook and Instagram can lead to snap decisions before a potential couple even meets face-to-face. Accessibility has made relationships disposable and, in many ways, has diminished people’s loyalty to each other because there is always someone else out there. Millennials coined the phrase “FOMO” — fear of missing out — to describe the anxiety of “settling” when a better option could possibly exist.
In 2020, brand loyalty suffers from the same symptoms.
When shopping for a product, people’s options used to be restricted based on proximity. They could only compare prices between the two department stores down the street, and model choices were based on whatever was in stock. Recommendations came from those you had close relationships with — family or neighbors.
Technology transformed the shopping experience — and with it, our relationship to brands.
People’s purchasing options are no longer limited by their community, country, or even their continent. Verified reviews that come from a total stranger may carry just as much — or more — weight as those from family and friends. Customers use social media platforms, reviews, and publications to form opinions before they even come “face-to-face” with a brand. Transparency allows customers to share negative experiences just as easily as positive ones — and, find other “fish in the sea” anytime they’d like.
Within this ever-changing landscape, three types of companies exist:
- Those who are in love with themselves.
- Those who are in love with their customers.
- Those in the middle.
Companies who are in love with themselves are less likely to pivot in time to address the new changes that technology is bringing to the marketplace, whereas those who have a strong partnership with their customers are able to understand their needs and adapt proactively.
According to Mark McClain, CEO and Founder of SailPoint, a company’s biggest corporate asset aside from its employees, is its customers. Strong customer relationships directly correlate to higher retention and improved profitability.
So, how do can brands build enduring customer relationships in the age of “swipe right” loyalty?
PHASE 1: CHECK OUT THE MARKET
While “swiping right” is used for dating apps, “scrolling down” is the equivalent in retail.
Amazon has cultivated a culture where people’s loyalty to a brand can be shifted as easily as scrolling down and seeing a lower price.
The same holds true for all product and service purveyors. Jeff Thermond of XSeed Capital once published a Forbes article that asked the question on everyone’s minds, “Is competing in a crowded market worth the gamble?” Chances are that you won’t be the first to the market with your offering, so the way to win is by being the best in your niche. “Best” defined as uniquely relevant to the market in terms of offering and/or execution.
The first step towards differentiation is knowing who you have to differentiate your brand from.
Competition fuels continual improvement.
Key questions to ask your team:
- Who are our primary competitors?
- What resources are our target audiences currently using to address the problem we aim to solve?
- How are we working to differentiate our offering, claims, or experience?
- How can we address new entrants to the market?
- How does innovation have the potential to change our landscape tomorrow?
PHASE 2: KNOW YOUR AUDIENCE TODAY
Branding zeitgeists have long been broadcasting the fact that we live in a post-demographic world.
Trendwatching describes this as “a world of more diverse and complex consumer lifestyles [due to] changing social attitudes, converging economic pressures and endless choice that have scrambled the way millions of people think about, attain — or avoid! — traditional markers of adult life.” Stated simply, it means that consumers’ wants, needs, and motivators can no longer be generalized by life stage — but they should instead be grouped by things like beliefs and behaviors. Instead of “millennial” versus “senior”, more appropriate classifications have become “tech adopting” versus “tech adverse”.
In this “post-demographic” landscape, people’s identities are no longer dictated by the life they’re born into — they’re starting from scratch and assembling it themselves.
And, one of the ways people signify their personal identity is with brand preference. Pizza or tofu? Fair trade coffee or Folgers? Nike or Converse? Tinder or Bumble? YouTube or IGTV?
There is an immense amount of complexity. And, according to Salesforce’s “Connected Shopper Report”, only 37% of shoppers feel like retailers truly know their customers — a.k.a. their target audiences.
So, the good news: people are more ready and willing than ever to talk about (and to) the brands that matter to them.
And there’s a significant opportunity for brands to take steps forward to gain significant returns in this area.
Key questions to ask your team:
- Have we identified the target audience(s) most likely to buy our product / service?
- Are we marketing to them in their “natural environment” (e.g., daily life, social media)?
- Are we making our content easy for them to share?
- Are we crafting talkworthy experiences that make then want to share?
- Are we rewarding them for bringing their friends into the fold?
PHASE 3: TALK TO YOUR AUDIENCE(S) ABOUT HOW TO BE BETTER FOR TOMORROW
Great brands aren’t built in a vacuum.
The most successful brands are those who cultivate open and frequent communication with their customers.
Many a boardroom has gone quiet when someone asks, “Well, what do the customers want?” In my career, I’ve never been in a boardroom where executives did not gain insight from shifting the focus outward and asking that question of their customers.
It’s particularly important in this day and age in which where customers demand personalization.
Companies who achieve sustainable competitive advantage are the ones who make customers’ lives easier (e.g., time savings by not having to filter through irrelevant content) and deliver greater value (e.g., more connected and fulfilling). In order to craft this customization, it’s more important than ever to infuse the voice of the customer into a corporation’s daily decision-making practices.
Remember that it’s impossible to have too many points of sustainable competitive differentiation.
So, always be working to add more to your portfolio of differentiators.
Key questions to ask your team:
- Do we have a method to regularly gather customer feedback?
- Are we getting customer feedback about the right points that will move the needle?
- What’s our method for applying customer feedback to our programs and processes?
PHASE 4: IMPLEMENT CUSTOMER FEEDBACK
It’s easy for a conversation about “listening to customers” to be delegated only to a company’s Marketing Team, but that narrow-minded view is the first step towards losing future revenue for the company as a whole.
While it’s old news that the internet has transformed face-to-face interactions into device-to-device contact, many companies are failing to maximize the ROI of their marketing efforts because they don’t have a deep understanding of what messages and mediums are most relevant to their target audience.
Without understanding their prospective customer, CMOs are throwing money at marketing methods that broadcast their brand story to people who won’t buy. And, the ROI of marketing dollars can only be fully realized if a company is actively engaging prospective customers before their moment of purchase in their natural habitat.
Customer experience is too important to ignore.
- The Temkin Group surveyed 10,000 US customers about their journeys with 318 companies across 19 industries and discovered that a moderate increase in Customer Experience generates an average revenue increase of $823 million over three years for a company worth $1 billion in annual revenues.
- 86% of buyers will pay more for a better brand experience. (Source: Oracle)
- 84% of organizations actively working to improve customer experience report an increase in revenue. (Source: Dimension Data)
If your company isn’t broadcasting your brand story and delivering an exceptional customer experience, there’s another brand that’s filling the void. It’s more efficient and cost-effective to be the first rather than having to boot out the competition later.
Key questions to ask your team:
- Do we have the right people involved to get a 360-degree view of what our experience is today, and how we can make it better tomorrow?
- How can we infuse customer feedback into crafting a better experience?
- Do our employees feel empowered to deliver an exceptional customer experience?
- Do we need to adapt any internal processes to deliver a better customer experience?
- What is our concrete action plan for the application of feedback and continual improvement? Do we have buy-in from leaders across departments?
About What’s Next Labs: What’s Next Labs is a publication of INTO, an agency that empowers businesses to transform their aspirational goals into actual growth. Learn more about INTO at into.agency.
