At rDialogue, we believe that loyalty marketing can be summed up best as: brands paying attention to customers, and acting accordingly. Consumers give brands access to their preferences, their purchasing history, their data—all in exchange for relevance. We have long believed that there is no single, best approach to creating customer loyalty. In fact, there are five key drivers for loyalty: access, financial value, information, recognition, and time. The latter, time, is quickly becoming the most important of these drivers. But what is time?
Time is a fairly vague term. How does it manifest as a driver of loyalty? To give it some context, we examined three ways in which brands are being more respectful of consumers’ time, and in doing so, strengthening their relationship with consumers. These three ways are: actual time savings, convenience, and frictionless experiences. It should be said, though, that these three categories have a lot of overlap.
In our first dive, we looked at actual time savings. For our second dive, let’s take a look at convenience.
One of the most prolific delivery mechanisms of time is convenience. In 2017, Google saw a 200% increase YOY in brand-specific searches for “delivery” and “pick up” apps. (Source: Google Data, US, Jan-Sept 2016 vs. Jan-Sept 2017) That’s not surprising, considering the war being waged between Amazon, Target and Walmart.
In fact, the proliferation of convenience services like Postmates and Instacart only proves that time has become so valuable to Americans that they are willing to pay a premium for the conveniences. Our research found that 14% of consumers under 45 express their loyalty to a brand by paying a fee versus just 8% of those over 45.
What are some other examples of convenience?
- BOPIS/MOPIS: Buy Online Pick-Up In-Store allows you to buy things online and pick them up in store at a time that suits you. It’s a great alternative to two-day shipping, and even one-day shipping because you can pick it up at a store close to you, at a time that works best for you.
- Meal kits: While you still need to do the actual cooking, meal kits take the necessary trip to the grocery store out of the equation, saving you time and energy.
- Amazon Dash buttons: With Dash Buttons, Amazon customers don't even need to go to the website. They can press a button, conveniently placed where they need it most, and reorder items.
These are just some of our favorite examples. What are yours?
To learn more about time, why it's fast becoming the most critical loyalty driver, and why brands like Walmart, Amazon, and Delta are investing in it, check out our new white paper.