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Loyalty programmes & communication vital in retail: CGS

13 Apr '20
3 min read
Pic: Shutterstock
Pic: Shutterstock

CGS has unveiled new data about consumer purchasing trends and service interactions during March 2020 in its 2020 CGS State of the US ecommerce consumer survey. The survey found that consumers are still purchasing non-essential items and willing to adjust their service expectations, as long as companies communicate any disruptions and reward their loyalty.

CGS sponsored Dynata to survey 1,000 consumers across the US about their current spending habits around non-essential items. For the purposes of this survey, non-essential purchases are items other than food, medicine, and hygiene products.
 
Whether it’s production delays or a reduced staff, many companies are unable to maintain the level of service they had earlier this year. However, most consumers said they were not affected by these operational strains. More than half of the respondents (53 per cent) stated that they are not feeling any disruptions to their service right now. A large part of this could be the proactive communication they are receiving around service disruptions. When asked if consumers are experiencing delays, more than one-third said they were but the brand communicated the delay. Another 28 per cent reported experiencing no delays at all. As long as companies are being proactive to remedy delays and make customers aware of the longer resolution timeline, consumers are less likely to feel any significant service disruptions, according to CGS.
 
Across the globe, many businesses are using rewards and loyalty perks as a way to maintain their customer base, and its working. When asked what type of loyalty programmes would entice them to buy right now, more than 90 per cent of consumers responded that free shipping and product discounts/promotions would win them over. For small and local retailers, this is even more crucial to ensure they maintain their in-store customer base. Right now, the majority of consumers (69 per cent) are utilising Amazon and other marketplace websites for their non-essential purchases. Another 13 per cent are using department store websites, with less than ten percent going directly to a brand’s website or a local store. Rewarding customers through promotions, membership benefits and individual perks is a way of maintaining business through these difficult times and beyond.
 
Americans are extremely focused on the health and safety of their loved ones right now, but they are still finding ways to treat themselves and others. This includes making updates to their closet: 49 per cent of consumers are purchasing everyday clothing. That percentage increases to almost 60 per cent when looking at the respondents who have full-time employment.
 
Of the one thousand individuals surveyed, the majority of consumers (46 per cent) are employed full-time and another 17 per cent are retired. Access to a stable income likely factored into their purchasing habits, but age also played a major role. When looking at millennials (25-34-year old), 64 per cent are buying everyday clothing. The older consumers are much less likely to be making fashion purchases, suggesting retailers should focus their targeting efforts on younger buyers.
 
“While so much of the retail and wholesale industry has been upended, consumers are continuing to purchase clothing for their everyday lives. The survey confirms that the abrupt change to work from home and social distancing requires a different type of wardrobe – less spending on luxury items and accessories,” Paul Magel, president, business applications at CGS said.

Fibre2Fashion News Desk (GK)

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