It is anyone's best guess where consumers' loyalties lie. However, a consumer loyalty survey uses data and facts to help a company or brand reduce the unknown and identify key drivers in measuring returning customers.
It is not as easy as a consumer using your product one-time for he or she to indefinitely fall in love and never switch to a competitor. There are multiple emotional, psychological, and social factors in which encourage recurring usage of a product for consumers.
So what is really driving that brand loyalty? In this blog post, we'll discuss the benefits of conducting consumer loyalty research and examples of when best to use a consumer loyalty survey.
Do you know what drives consumer loyalty? A consumer loyalty survey uses data and facts to determine key purchasing motivators to drive your marketing efforts.
What is a consumer loyalty survey?
A consumer loyalty survey is a type of online survey in which a company can obtain direct feedback on existing products or service offerings in the market. The survey respondents are typically recent users of a product or service who share in the purchase decision making for their household.
These respondents are often solicited through a company's contact list they've built through newsletters, rewards programs, outreach on social media, or third-party email lists. The direction you go here may depend on the number of users for your product or service in the general population.
In the consumer loyalty survey itself, questions aim to get at the thoughts and opinions of consumers and ultimately how loyal they are to a brand. A consumer loyalty survey focuses on the consumer experience and the key touchpoints within it. For example, a smartphone manufacturer may work with a consumer loyalty survey company to understand a customer's experience during the initial sale of the phone, the ongoing technical support, and the device end-of-life support.
Some common questions in a consumer loyalty survey include:
- Customer satisfaction (CSAT)
- Likelihood to repurchase (LTR)
- Customer effort score (CES)
- Likelihood to Switch (LTS)
- Likelihood to recommend (also known as NPS or Net Promoter Score)
Each of these metrics are widely used across industries to understand different aspects of the customer experience and what about their experience increased their likelihood to buy from a company again.
When is best to conduct consumer loyalty research?
There is no right or wrong time to conduct consumer loyalty research. In fact, whether you already have a structured customer experience (CX) program in place, or are just starting out - a consumer loyalty survey will prove to be advantageous to your organization.
If you already have a structured customer experience (CX) program, a consumer loyalty survey will fit in flawlessly. A consumer loyalty survey is a valuable component of the greater customer journey for product users. If this is your first time doing a formal survey among your customers, you can just as successfully set up the survey as an individual initiative. In either case, consider hiring a market research company to design, program, test, and field the online survey.
There is also flexibility surrounding the timing of sending a consumer loyalty survey. One way to distribute the survey is transaction-based, in which a survey is sent to a consumer after a purchase has been confirmed. This process can even be automated in real-time, such as pop-ups on a website or survey links on a receipt.
If you have a defined timeline in mind for the consumer loyalty survey project, it is best to send out all of the survey invitations at once to your list of consumers. This option works well with strategic goals for the company, as action can be taken on the survey results for upcoming product development or marketing efforts.
I would also note that consumer loyalty surveys make the most sense for companies that have significant competition in the market. Frequently, a key output of the survey is how your company stacks up against competitors in the industry.
What are the benefits of a consumer loyalty survey?
There is no shortage of reasons to consider a consumer loyalty survey. As a consumer loyalty survey company, we'd said the main advantage to conducting this type of market research is identifying the key drivers for consumer satisfaction and loyalty.
A consumer loyalty survey is one of the best ways to unearth what motivates customers to give you their business.
As with any quantitative research study, consumer loyalty surveys provide organizations with measurable outputs. By keeping track of metrics like customer satisfaction or NPS, you can see where you perform well and where there is room for improvement. Whether it is year-over-year, quarter-over-quarter, or some other comparison, you can set strategic goals over time.
The metrics in a consumer loyalty survey also enable a company to see how they compare to external benchmarks. A consumer loyalty survey company will recommend using the same questions you've asked about your company to again be asked about your competitors. The results of a consumer loyalty survey will show direct comparisons about the customer experience for your company vs. competitors.
Understanding where your competition is superior is important for any business. Industry average benchmark scores are also useful to see where your company falls within its entire industry.
Last, but certainly not least, is the importance of engaging your own consumers. Every so often, it is important to let your customers know you are listening to their feedback and are always striving to improve your products and services to meet their demands.
It is a win-win scenario when consumers can openly share their opinions about their purchase and use of your services, and then directly see the positive changes you've made based on their feedback. Just be sure to to distribute the consumer loyalty survey with an unbiased third-party market research firm!
Drive Research is a market research company located in Syracuse, NY. Our team of experts are no strangers to consumer loyalty surveys. We can assist you with a project to get to the root of how your are performing and what your customers want.
Interested in learning more about our market research services? Contact us below.