BRAND LOYALTY IS SLIPPING AMONG CONSUMERS | VML
According to Shop.com, online retailers are going to have to “wow” online shoppers this year. While a small proportion (24%) remains brand loyal, a whopping 76% are “price-sensitive” and spending cautiously. In March 2010, for example, a comScore survey showed less than 50% of shoppers reported purchasing the brand they wanted most. But prices can only go so low. How long will a customer stick around once price promises have disappeared? Online retailers need to think long term and begin adding value to their products to re-ignite brand loyalty. Social media is proving a fertile ground for breeding brand loyalty.
Recent research by eMarketer has shown that social media sites like Facebook are where consumers go to keep abreast of a brand’s products and promotions. They also view social media sites as a customer service channel. This is where consumers are connecting and where online retailers need to engage, BizReport reports.
