How loyal are new customers acquired during the pandemic? Not very, according to this Braze survey. While 26% of consumers have tried at least one new brand during the pandemic, their retention rate is 82% lower than customers added during previous non-COVID, non-holiday periods. A whopping 91% said they’ll consider how brands behaved during the pandemic when deciding where to shop in the future.
One reason for less loyalty has been a decline in service levels, according to Simplr research. A mystery shopper study found that email and chat wait times have increased despite brands using more digital service channels. More subtly: nearly all complex bot experiences ranked as “very poor” unless a human was standing by to help.
This report from personalization vendor Formation.ai found an increase in loyalty compared with five years ago, but responses were collected before the pandemic began. The over-all finding that personalization generates loyalty is still probably valid, although customers like personalized rewards and discounts much more than personalized advertising. One weird twist: personalized Web experience, marketing email, and mobile notifications were rated both the most likely to increase brand loyalty and to decrease it.
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