Loyalty and fidelity: brands must offer more
The generational question: Brands need to offer more to secure the loyalty of younger customers. But it tends to be older customers who punish poor user experiences.
A new study by technology expert Ricoh highlights the different customer service expectations of different generations. Older customer groups are shown to be less forgiving of brands, while younger customers expect far more information when considering a purchase and in-depth post-purchase interaction to build long-term relationships with brands.
ÄOlder people do not appreciate brands with cumbersome purchasing processes at all.
The study found that 62 % of over-55s would turn their backs on brands with cumbersome purchasing processes, compared to only 43 % of 16-24 year olds. 55 % of customers in all age groups would forgo a purchase if the process proved complicated. Younger age groups, however, value the more advanced interaction with brands far more than older ones. Additional services such as the inclusion of third-party reviews and recommendations are significantly more important to younger consumers. 43 % of 16-24 year olds rated this as a factor that most impressed them when deciding to buy a brand, compared to only 20 % of 55+ year olds. It was also found that older customers were less interested in loyalty programs and incentives for frequent purchases. For only 19 % was this a captivating factor, compared to 38 % among 16-24 year olds.
"Customers reward brands they feel valued by"
Javier Diez-Aguirre, Vice President, Corporate Marketing, CSR & Environment, Ricoh Europe, commented: "Our study highlights one of the core challenges facing brands today - how to manage the diverse preferences of customers across all generations. Brands need to ensure that their customer-facing processes, platforms and technologies are spot-on with the common assessments they use to ensure continued appropriateness and optimal impact. Those that get this right will be rewarded, with 57 % of customers spending more on brands they feel valued by."
Information before purchase
Ricoh's study also found that customers are increasingly making great efforts to gather information before making a purchase. In addition to wanting third-party reviews, 33 % of 16-24 year olds and 37 % of 25-34 year olds use Facebook to engage with a brand before making a purchase. Younger consumers are also frustrated to a higher degree when it is not possible to interact with a brand via social media. This is agreed to by 50 % of 16 - 24 year olds compared to 26 % of over 55 year olds.
Source: Ricoh
