White Paper
June 17, 2015, 5:20 PM EDT
Here's One Way Retailers Can Grow Customer Loyalty
Author
Source: Business Insider
Abstract:
You probably already define what your business offers — and how that's different, or better, than what your competitors do. But is it unique and compelling enough?
Crafting a strong value proposition takes a lot of time, effort, and creativity, but it makes a huge difference to customers.
Synchrony Financial, a leader in consumer financing and the largest issuer of private label credit cards in the US (based on purchase volume and receivables), has done extensive research into how value propositions drive customer loyalty. Its findings are consolidated in an infographic (embedded below) that outlines three steps every retailer should consider taking.
Table of Contents
1. Customize.
It starts with research. Synchrony Financial suggests beginning by analyzing any data you already have on your customers to understand various shopper profiles and segments. Leverage focus groups and collect insights from employees who interact directly with customers. It's important to give the same level of attention to your competitors — especially their strengths and weaknesses — so you can set yourself apart.
According to Toni White, Synchrony Financial's chief marketing officer, a value proposition is all about strengthening the relationship with your customers.
"It's an ongoing opportunity for retailers to build a stronger connection with their customers and create a positive perception of their brand," says White. "Those who spend time going through the process of developing a strong value proposition are more successful in attracting new customers and maintaining loyalty with their existing ones."
2. Integrate.
That means if you're buying a pair of shoes, you should be able to get them in the color you want, at the same price — whether you're on the website, using the app, or shopping in the store. In fact, many retailers are letting people buy online inventory at the store, and then shipping the items to them for free.
Rewards and discounts need to be consistent with your value proposition, too. If you have a loyalty program that allows customers to earn points when they shop online or on a mobile app, then make sure they can track and redeem their points at any time, on any type of device.
3. Commercialize.
Once you have a clear-cut winner, then be ready to put key resources into supporting it. Check off these items from Synchrony Financial's infographic: Create a positioning statement, a marketing message, and a marketing plan (for example, in store, direct mail, email, and digital channels). You'll also need to train your employees and associates.
Ultimately, customers want to know, "What's in it for me?" A great value proposition tells them just that — but creating one doesn't happen overnight. And even though it's a lot of work, you'll be surprised by how much it can help grow your business.