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ICLP survey: Electronic merchants better at customer treatment

Sanjit Gill, ICLP, UAE retail survey
Sanjit Gill, ICLP

A new UAE retail survey by global loyalty agency ICLP reveals almost half of customers at electronics retailers feel valued as individuals, performing best when compared to other retail sectors in the country. As per the report, 48% of electronics retailer shoppers felt valued, compared to just 35% for sporting goods shops, 34% for fashion retailers, and 27% among supermarkets.

50 percent of shoppers at electronics retailers, such as Jumbo Electronics, Apple, Sharaf DG and Jacky’s, said that because they were regular customers, they felt more appreciated. Sporting retailers, such as Modell’s came in at a close second with 42%, ahead of fashion retailers and supermarkets.

This study of UAE shoppers also looked into the reasons why some retailers were doing a better job of making their customers feel like they treated them as individuals. Results showed that electronics retailers are doing a better job of remembering what it is that their customers want. 33% of customers at electronics retailers said that their shopping, payment, and delivery preferences were remembered, compared to just 23% for sporting retailers, 21% for fashion retailers, and 15% for supermarkets.

Shoppers at electronics retailers are also more likely to be rewarded with offers that are specific to them, with 1 in 3 feeling that their rewards were tailored to them. However this still shows that all sectors have a long way to go when it comes to delivering true personalised rewards. Just 27% of fashion shoppers said that rewards were personalised to them, with 26% for sporting retailers, and 13% for supermarkets.

Rewards are also being used to encourage recommendations and advocacy. 38% of electronic retailer shoppers say that they are rewarded for recommending the brand to someone else, compared to just 29% for fashion retailers, 29% for sporting goods and a very disappointing 12% for supermarkets.

ICLP also surveyed how well different retail sectors were performing when it came to customer care. Again, electronics retailers led the way, with 55% of their customers saying that they trusted brands to put things right quickly when things go wrong. This compares to just 44% for fashion retailers, 42% for sporting retailers, and 38% for supermarkets.

Finally, electronics retailers also took the crown for best use of personal data, as customers believe they are delivering the best level of personalisation. 60% of shoppers at electronics brands said that their personal data was used in ways that benefitted their shopping experience, compares to just 42% for fashion retailers, 39% for sports goods, and 31% for supermarkets.

Sanjit Gill, general manager, ICLP, said that loyalty should be more than simply a loyalty card or basic points programme. Instead, he said that loyalty needs to be a strategy that runs through all departments and has buy-in from all levels. This also needs to include a long-term view that includes lasting support, guidance, and customer care.

“Customer experience is key to driving Loyalty as consumer demands are changing on how they want to be engaged by brands, this is why retailers need to continually review their programme strategy to ensure it is aligned and relevant to their customers. Whilst business performance metrics are still important, retailers cannot ignore the changing trends that are driving the ways customers shop and with whom,” Gill added. “Electronic retailers appear to be succeeding where other retail sectors are struggling because they are taking this longer-term view with their customers, ensuring that all shoppers are treated with respect and feel that they can trust the brand. Other sectors should sit up and take notice to ensure that they too are building strong and lasting relationships with their customers.”

 

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