Does brand loyalty still exist and what can we do to improve it


How can you improve brand loyalty

According to Q&A website, Quora, there are over 1.5 ‘significant brands in the world’. It is no big surprise then, that with these brands constantly fighting to get noticed, brand loyalty has taken a bit of a nosedive in recent years.  A staggering 80% of shoppers would switch brand or stores if offered a better deal elsewhere.

Most consumers are no longer convinced that the biggest names offer the best product or service. Even those who prefer a particular brand can be easily swayed to try an alternative if the offer is compelling enough – in a report from GT Nexus, 61% of consumers admitted to ditching one of their favourite brands for another.

What can brands do about it?

Naturally, pricing does come into it, but it goes beyond this.  The modern-day consumer is looking for great experiences rather than great products and this is reinforced by Simon Usborne from the Guardian who wrote about how we’ve ‘turned our backs on stuff’ as we focus in on an experience economy.

If there is a way to combine both tailored pricing and unique experiences, brands could be onto a winner.  This is especially true for things which are easily substituted, such as pasta.  My household gets through a lot of pasta, but I have no real loyalty to a brand so I tend to buy what is on offer.

But if, when making that final purchasing decision, there was a brand that gave me a special voucher because there was a cheaper alternative and they could price match or gave me a list of menu options or even a video on how the pasta was made, showing me how ethical they are – suddenly saving 20p doesn’t seem so important, because the experience has been so engaging.

Augmented reality has the ability to do this, and that is why AR is so important for brands looking to improve loyalty with their customers.  Competing on price or offering the best promotion is no longer enough, brands need to start creating ways in to truly engage with consumers.

Accenture has estimated that 33% of U.S consumers would be loyal to brands which engage them in ‘multi-sensory’ experiences which use new technologies such as virtual reality and augmented reality. So, with the popularity of these technologies growing at a rapid rate, this figure is surely going to continue to grow.

 

Learn more about augmented reality solutions which improve customer experiences 

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