Left brain versus right brain | 2019-06-24
Customer retention is essential to building a successful business. Every business owner wants loyal customers, but how do you encourage loyalty?
Synchrony, one of the leading providers of retail credit programs for businesses nationwide, examined the topic in its 2019 Loyalty Study. They conducted an online survey of 1,500 consumers with questions designed to probe the psychology, motivations and emotions of buyers. Responses were weighted based on US demographics such as income, education, geography, and ethnicity.
“Business owners tend to think of consumers making purchasing decisions purely on logic,” said Katie Hughes, vice president of loyalty strategy, Synchrony. “But consumers aren’t always motivated by logical factors like price, value and selection alone. There are emotional factors too, and our study found their impact on sales and loyalty. “
Forty-three percent of those surveyed identified trust as the main driver of brand loyalty. For this survey, “trust” was defined as a consistent experience, associated with honesty, transparency and reliability.
For retailers, the focus consumers place on trust raises important questions. Can your customers trust your brand to always be great? Can you be counted on to support your product or service? As a corporate citizen, will you do the right thing? Are you trustworthy in your business practices?
If you can answer “yes” to these questions and demonstrate them through your actions, then you begin to gain consumer trust and the loyalty that often accompanies it. Failure to uphold these ideals will decrease the trust factor and reduce customer loyalty.
Confidence is not gained quickly, but it can be lost with just one bad experience or attitude. If your sales experience is inconsistent or if customers have a hint of dishonesty, any trust you have established can evaporate almost instantly. Building trust with consumers requires a commitment to values that starts at the top of your organization and extends to every employee.
Beyond trust, the next most important factors in customer retention are simplicity and convenience. Simplicity and convenience are defined as “a seamless shopping experience”, a simple and intuitive layout of the physical store and website, as well as “frictionless” payment and product delivery. Convenient financing programs would be part of a frictionless buying process.
“The results of our survey reveal that consumers can be motivated by right-brained or left-brained thinking,” said Hughes. “The left lobe of our brain tends to focus on analytical and methodical thinking; practical matters like price and value. The emotional aspects of our behavior are usually centered in the right lobe. Both parties are involved in the decision making, but which aspect dictates loyalty, whether practical or emotional, depends on the personality of the buyer.
For left-brained consumers, price, value, and selection are huge motivators. Right-brained shoppers want to be loyal to a brand if loyalty is earned and demonstrated through action over time. So, can both approaches to loyalty be satisfied?
“Absolutely,” said Hughes “There are many examples of retailers or service providers who deliver great value and convenience, but also gain trust by developing a strong and consistent brand image through their integrity, their social involvement and their personalized service. These are the companies that win in the long run because they have loyal customers.
How important is trust in the mind of the consumer? The survey indicated that 50% of shoppers would switch stores if they lost confidence in the brand.
Other loyalty factors included shared values (7%), recognition / belonging / enjoyment (tied at 6% each), inspiration / excitement (tied at 5%) and prestige (3%).
The Synchrony Emotion-Based Study was conducted from November 2018 to February 2019.
Synchrony (NYSE: SYF) is a leading consumer financial services company. We offer a wide range of specialized financing programs, as well as innovative banking products for consumers, in key industries including digital, retail, home, automotive, travel, health and animals. of company. Synchrony allows our partners to increase their sales and retain consumers. We are one of the largest private label credit card issuers in the United States; we also offer co-branded products, installment loans and consumer finance products for small and medium businesses and healthcare providers.
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