Wrong Retailers Perceptions About Customers

Most retailers think that the best way to retain customers is through "engagement" - as much as possible to interact with customers and build relationships with them. Apparently that fact is not always true.

In a study of 7000 consumers, found that retail companies are often wrong in determining the best way to connect with customers. Errors are usually caused by the perceptions believed by the retailer. The perceptions are:

1. Consumers want to have a relationship with our brand

The fact is not. Only 23 percent of customers of this study which says they wants to have a relationship with the brand. In view of the general consumer, the relationship is only built with friends, family, and colleagues. That's why when asked to others 77 percent customers, the reason they do not feel the need to establish a relationship with the brand, we'll get answers like "It's just a brand, not a member of my family." When dealing with the brand online, it actually desired by consumers is discount.

With this reality, how we have to take a stand? First, understand where consumers are included in the 23 percent and which is the 77 percent. From there we can begin to define expectations and appropriate way of marketing. Stop flooding the consumers who do not want to be associated with our brand with all kinds of emails and loyalty programs that are complicated.

2. Interaction of building relationships

No, the interaction does not build relationships. Shared values ​​build relationships with customers. Shared value is the belief held by both brands and consumers on a large goal or philosophy embraced by brands. For example, Pedigree Dog Food. Their shared value is the belief that every dog ​​is entitled to have a house full of love. While Southwest Airlines shared value is the democratization of air transport.

Of all the consumers in this study that states have a relationship with the brand, 64 percent said that the shared value is the reason they build a relationship with the brand. And only 13 percent said the frequency of interaction as the reason.

Many brands have big goals that are part of their mission. Start of commitment to the environment such as held by Patagonia, to the purpose of realizing the dream with Harley Davidson motorcycle riding experience. The objectives of this feels authentic to consumers. In addition it also provides a reliable basis for shared values ​​and the relationship between brands and consumers. So, to build relationships with consumers start by communicating the brand philosophy or a big goal.

3. The more interaction, the better

This is wrong. There is no correlation between customer interactions with their brand loyalty - in the form of the desire to buy, buy again, and recommend it. However, most of the retailers to behave as if there is a linear relationship between the number of interactions with the purchase amount. This makes retailers such as Neiman-Marcus, Land's End, and Toys R Us sent more than 300 emails a year as reported by the Wall Street Journal.

In fact, a linear relationship can be destroyed more quickly than a lot of retailers think. With the rapid interactions that were previously thought to help turn into a big wave that destroys. Without realizing it, many retailers simply bombarding consumers with information and make them feel shopping categories. This reduces consumer engagement with the brand, rather than strengthen it.

So, rather than constantly asking for the attention of consumers, it is better to treat with good attention we've been getting. When we intend to campaign, always ask our self, whether the campaign will makes the customer's information overload? If the answer is yes, then find the other way. When interacting with customers, the more often it is not getting better.