Customer satisfaction has represented the bedrock for maintaining high customer loyalty for a brand, no matter the product or service that it sells. While the correlation between satisfaction and loyalty has been a sound premise for decades, there are growing indications that it is beginning to fail, especially among younger consumers. The phenomenon is spanning a multitude of categories, from automotive to apparel.
Nearly half of consumers under the age of thirty-five indicate that they stop patronizing a brand because they are bored with it.Iceology Research Communities, January 2019
According to our research, the breakdown in the correlation between satisfaction and loyalty appears to be mainly due to brand boredom or fatigue. The up and coming generation of consumer has been reared in an era of fast change (the digital revolution) and a rapid expansion of options in every product and service category that they partake in. Given this, the younger generation has shorter relationships and attention spans with brands as they are always looking for the next innovation.
While in the past brands could count on the traditional metrics of defining customer satisfaction, great customer service, high quality merchandise and a strong value proposition to maintain loyalty, brands now have to start rethinking those metrics. In fact, those three categories have become the cost of entry for any brand with relevance and innovation representing the new characteristics that will determine customer loyalty. Our research has determined that younger consumers will remain loyal to brands that maintain relevance to their evolving personas and lifestyles and that continue to excite them with leading-edge innovation.
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