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Composite Loyalty Score

Personalisation and Assistance is Extremely Important to Customer Purchase Decisions

Findings from a national retail fashion study by Market Force Information, a worldwide leader in customer intelligence solutions, reveal that customer satisfaction and experience was relatively low for all seven retailers who topped the survey. The study found that 18 per cent were dissatisfied with their recent visit to their favourite retailer - a significant number, especially before Christmas. Crucially, those who were very satisfied/delighted with their experience would be twice as likely to recommend the retailer/brand to their friend or colleague.

In December 2014, more than 3,400 consumers participated in a nationwide study designed to uncover the consumer’s favourite retailer, investigate factors that drive satisfaction and loyalty and reveal trends in multiple channels, including e-commerce sites, in-store experiences, and mobile apps.

The Composite Loyalty Score* of all seven retailers shows an extremely tight competition between the brands, with TK Maxx topping the charts at 48 percent, followed by New Look at 43 per cent. Other brands had similar scores with variants of a percentage mark between them.

Consumers are Conscientious Buyers

Consumers confirmed this tight competition among fashion retailers with wallet share at about 50 per cent for all brands. TK Maxx had an average wallet share of 51 per cent in comparison to Marks and Spencer’s with 55 per cent. Next and New Look at 49 per cent and 50 per cent respectively. Primark had 53 per cent and Debenhams had 49 per cent.  

The study identified four key drivers of satisfaction, including: Practicality (sizing, choices, value for money etc.), Environmentally Conscious (CSR and green practices, types of materials used, information on country produced etc.), Just For Me (opportunities to share fashion tips and ideas/information, customisation, exclusivity etc.) and finally, Store Operations (speed of checkout and overall atmosphere). Customers that indicated their favorite retailer executed on all four behaviors were 5 times more likely to be highly satisfied with their experience than those who felt that retailers executed well only one or two of these factors. Only 10 per cent of all consumers rated their favorite retailer as executing well on all four critical drivers.

Personalisation and Assistance is Extremely Important to Customer Purchase Decisions
Engaging with customers is vital to the brand loyalty and satisfaction. Retailers who have assistants that can create a look and offer support and advice on products are more likely to score a top box satisfaction rate of 5. Having delighted customers means that they are two times more likely to recommend a retailer to friends. With 1 in 4 customers having visited their favourite stores recently and 78 per cent spending money, NEXT and Debenhams were twice as likely to help shoppers and create high conversion rates of sale.

Online Retailing – Debenhams, NEXT and H&M Top Three E-Tailers

With over £1 billion recorded online sales in the UK in 2014, this area of ecommerce is an important consideration for retailers. Although TK Maxx does well in its physical stores, it fails with e-tailing, However, customers were more likely to purchase from H&M online than buy in-store. Next and Debenhams are almost equal in its percentage share of purchases (76 and 74 per cent respectively) but Marks and Spencer’s, although has a good satisfaction rate with the website, fails to close in on checkout completion.

Mobile Apps – The Future of Brand Longevity
Taking retailers and brands mobile is also essential. Over half of the respondents surveyed had downloaded the Mobile App once they knew it was available. Use of the app was mainly to browse online but also to purchase items. Furthermore, having access to brands on a mobile phone enables browsers to store/locate items and make wish lists to purchase later or try in-store.

In addition to apps, social media and bloggers influence purchase decisions. Consumers like to engage with its retailer and brand, with New Look and TK Maxx fairing highest on the board. However, on average, most retailers are not doing enough on social engagement.


NOTES TO EDITORS:

Survey Demographics
The survey was conducted online in December 2014 across the United Kingdom. The pool of 3,400 reflected a broad spectrum of income levels, with 66 per cent reporting household incomes between £25,000 and £49,000 a year. Respondents’ ages ranged from 19 to over 65. Approximately 72 per cent were women and 28 per cent were men.

Follow Market Force’s Retail Fashion Insights LinkedIn page for the latest insights, timely discussions, commentary and industry news.

*Composite loyalty score = Market Force asked participants to rate their satisfaction with their favourite retailer and their likelihood to refer that retailer to others. The results were averaged to attain a Composite Loyalty Score.

About Market Force Information

Market Force is the leading global customer intelligence solutions company for multi-location businesses, including major retailers, restaurants, grocery and convenience stores, financial institutions, entertainment studios and consumer packaged goods companies. Market Force has pioneered the industry with a suite of customer intelligence solutions that enable multi-location business to manage operational excellence and customer loyalty. Proprietary decision-support tools comprise a platform of data collection techniques including mystery shopping, customer surveys and contact centre; analytics algorithms for predicting growth in loyalty and financial metrics; and a technology platform for integrating multiple data streams. Market Force solutions enable brands to identify the actions required at the store level to increase customer loyalty and improve financial performance. For more information, visit http://www.marketforce.com.

Media contact:

Jazz Gandhi
Bijou PR for Market Force Information
Tel: 07920 032740
Email: jazz@bijoupr.com

Martha de Monclin
Bijou PR for Market Force Information
Tel: 0777 168 2434
Email: martha@bijoupr.com



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