Younger customers may be more fickle when it comes to loyalty to a brand or business, but beware the older customer who has a bad experience with you.
That is according to the findings from a survey of 1,008 adult Australians by online business provider LivePerson, which suggested that older people were generally more loyal to a brand over time, but they were also more likely to boycott a business where they had a poor experience.
Consumers over the age of 45 were more than twice as likely to have been loyal to a brand for a decade or more than younger consumers (50.5 per cent compared with 21.1 per cent respectively).
Poor customer service was enough for 41.8 per cent of consumers to change brands – and for one in five (20.9 per cent), just a single bad customer service experience was enough to see them walk.
“More often than not, brand loyalty comes back to the customer experience. That means brands have made it easy and simple for consumers to communicate with them,” said LivePerson’s APAC regional vice president, Andrew Cannington.
“By designing a conversational customer journey, brands can reach consumers the same way they connect with their friends – through messaging – with personalised interactions, enhancing the overall brand experience.”
Interestingly though, service was not the prime driver of creating loyalty. Surveyed consumers ranked quality as their main reason for being loyal to a business or brand, followed by price. Good customer service then came in third place.
Businesses looking to improve repeat sales may do well to examine customers who go silent. According to Mr Cannington, more than a third (35.9 per cent) of consumers either don’t tell a brand about their bad experience or simply go silent altogether, leaving the business clueless as to why they have not been back.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.