Last updated on Feb 15, 2024

What are the emerging trends and technologies that are shaping shopper loyalty?

Shopper loyalty is a key goal for any retailer or brand that wants to retain and grow their customer base. But what does it mean to be loyal in the context of shopper marketing, and how can you measure and improve it? In this article, we'll explore the definition, benefits, and challenges of shopper loyalty, as well as some of the emerging trends and technologies that are shaping it.

1 What is shopper loyalty?

Shopper loyalty is the degree to which a shopper prefers and repeatedly purchases from a specific retailer or brand over others. It is influenced by various factors, such as price, quality, convenience, service, and personalization. Shopper loyalty can be expressed in different ways, such as frequency, spend, share of wallet, advocacy, or engagement. Shopper loyalty is not only beneficial for the retailer or brand, but also for the shopper, who can enjoy rewards, discounts, recognition, and satisfaction.

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Sebastian Villalobos Moltedo

General Manager | Commercial Manager | Country Manager | Consumer Goods | B2B | Industry | Growth | Profit
Shopper Loyalty is having your actual buyers engage with your brand. They won't switch to other brands and might even differ consumption if yours is not available. Beyond that you have advocacy, where not only your shopper becomes a loyal customer, but also helps you enrich your reach with Word of mouth branding.
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2 Why is shopper loyalty important?

Shopper loyalty is important for several reasons. First, it can help increase sales and profitability, as loyal shoppers tend to buy more, spend more, and cost less to serve than new or occasional shoppers. Second, it can help reduce marketing costs and risks, as loyal shoppers are more likely to respond to promotions, recommend to others, and stay loyal even in the face of competition or negative feedback. Third, it can help build a strong brand image and reputation, as loyal shoppers can act as ambassadors and advocates for the retailer or brand.

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Sebastian Villalobos Moltedo

General Manager | Commercial Manager | Country Manager | Consumer Goods | B2B | Industry | Growth | Profit
Loyal shoppers are less sensitive to price, OOS, and they might stock up if a good price promotion is available. Once you've achieved loyalty, your next concern is to really nurture that loyalty, having a great customer service and post shopping interactions.
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3 What are the challenges of shopper loyalty?

Achieving and maintaining shopper loyalty is a difficult task in the current competitive and ever-changing market. Retailers and brands face several obstacles, such as shopper fragmentation, shopper empowerment, and shopper expectations. Shoppers have more choices and access than ever before, including the ability to easily switch between different options, research, review, and share their opinions. Additionally, shoppers expect higher quality products for lower prices, as well as more personalized service and experiences. If these expectations are not met, customers are likely to express their dissatisfaction or switch to another retailer or brand.

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Jaime Flores Maltez

Gerente de Supply Chain | Gerente de Planificación | Gerente de Compras | Gerente de Operaciones | Gerente de Retail | COO | PMM | WMS | B2B | B2C | Comex | Inglés
Una vez que has trabajado en generar esa tan ansiada lealtad, mapeando tu customer journey, definiendo puntos de dolor y resolviéndolos, generando una cultura centrada en el cliente, desde tu declaración hasta su ejecución, etc. debes preocuparte en: - Ser consistente con ella esto quiere decir, preocupándote que su experiencia sea sin fricciones, conociéndolo en cada punto de contacto con el. - Que los productos o servicios que lanzas, sean pensado en él y como le resuelve alguna necesidad - entre otros

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4 How can you measure shopper loyalty?

Shopper loyalty can be measured in various ways, depending on the retailer or brand's objectives and metrics. Loyalty programs, customer satisfaction surveys, and net promoter score (NPS) are all common methods that can help track and analyze shopper data, measure and improve shopper satisfaction, loyalty, and advocacy, and gauge and enhance loyalty and referral. Loyalty programs offer rewards, discounts, or other benefits to shoppers who make repeated purchases; customer satisfaction surveys ask shoppers to rate their satisfaction with various aspects of the retailer or brand; and NPS is a metric that subtracts the percentage of detractors from the percentage of promoters to measure the likelihood that a shopper would recommend the retailer or brand.

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Sebastian Villalobos Moltedo

General Manager | Commercial Manager | Country Manager | Consumer Goods | B2B | Industry | Growth | Profit
Home panels, surveys and other tools are optimal for assessing the purchasing behavior of your loyal vs non-loyal customers. In that regard, purchase frequency, amount bought per occasion and other KPIs can help you determine the value of recruiting loyal shoppers.
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5 What are the emerging trends and technologies that are shaping shopper loyalty?

Shopper loyalty is constantly adapting to changing needs and preferences, as well as market innovations and disruptions. Emerging trends and technologies, such as omnichannel loyalty, gamification, and artificial intelligence, are shaping shopper loyalty. Omnichannel loyalty integrates online and offline channels to provide a seamless experience across different touchpoints. Gamification uses game elements to motivate and reward shopper behavior. AI uses algorithms and data to simulate human intelligence and decision making. These technologies can help increase shopper convenience, engagement, and retention, as well as personalize offers, recommendations, and interactions.

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