PPB January 2019

(7.1 percent), convenience (5.7 percent), other reasons (3.2 percent), charitable cause (1.8 percent) and popularity (1.2 percent). This trend extends into the digital realm, as 39 percent of online shoppers consider themselves loyal to their favorite brands. Similar numbers also hold true for Millennials, specifically. Morning Consult, a technology company specializing in research, surveyed 2,202 adults nationwide between the ages of 22 and 37, and found that 85 percent of consumers associate brand loyalty with reasonable pricing, 81 percent with reliability and 80 percent with high-quality products. But even though customer service wasn’t a standout requirement according to Yotpo’s study, this is not to say that it doesn’t play a pivotal role. Yotpo found that 67.3 percent of consumers expect ‘round-the-clock customer service, in addition to more discounts and deals (71 percent) and complimentary shipping (58.4 percent). Not to mention, with so many responsibilities falling within the scope of a brand’s success, customer service may be the glue that keeps a business together. Neil Patel describes customer loyalty as “low-hanging fruit,” because it’s far easier and less expensive to retain customers than it is to acquire them. But it’s not as easy as it sounds. The Pareto Principle, also known as the 80/20 rule, suggests that 80 percent of a company’s sales will come from 20 percent of its customer base. This perspective suggests that if your company can determine key characteristics about this 20 percent pool of consumers, then you can position yourself to market more effectively to this population and ultimately grow your business. Moreover, repeat customers are likely to act on your behalf as advocates for the brand. Yotpo found that 60 percent of customers are likely to share information with friends and family about brands they love, while 52.3 percent are more likely to join a brand loyalty program and 39.4 percent are willing to pay more for a product from their favorite brands, regardless of whether other brands offer less expensive alternatives. But to have customer loyalty, companies must be aware of what they are doing and how they are doing it. Poor customer service is a recipe for failure. If consumers are devoting their time to your brand, the assumption is that it’ll be worth their while, and customer service should ease the process, not complicate it. The product or service being offered should exceed the customer’s expectations. This requires quality, testing and strategic foresight. Value, which does not equate price, must be aligned with the customers’ expectations of the product. If a customer complains about the pricing of a product, it might be because the value is not obvious. And finally, like in all areas of life, consistency is key. If a company shows inconsistent branding, is unreliable with its products or provides iffy customer service, then major changes are needed—and fast. TECH TALK There’s An App ForThat A tech startup uses a thermometer to advertise cold products to consumers. If you feel a cold coming on, Kinsa has a solution. The San Francisco, California-based tech startup is selling a thermometer that does more than take your temperature: it syncs with smartphone apps to track your cold symptoms, triggering related advertisements to be directed your way. The smart component of Kinsa’s thermometer is sponsored by Clorox, which paid Kinsa to provide information about its consumers, referred to as “illness data.” As we know, Clorox is in the business of cleaning up. When any one of the 500,000 households with a Kinsa thermometer uses the device, it alerts Clorox about each user’s zip code, allowing it to track cold and flu symptoms nationwide to detect trends. When Clorox sees a spike in cold and flu, as per Kinsa’s data, it focuses on marketing specifically to the region where the spike occurred, offering products like disinfecting wipes or multi-surface cleaner. (Kinsa reports that its thermometers follow the Health Insurance Portability and Accountability Act of 1996, THINK | JANUARY 2019 | 73