A study by global loyalty-marketing agency ICLP shows low customer devotion to brands and retailers.
The study into the relationships brands and retailers have with their customers says that only 3 per cent of consumers in Singapore see themselves as being devoted to their favourite retailers – a close parallel to their counterparts in Australia and Hong Kong but a stark contrast with the 21 per cent in India who are devoted to their preferred brands.
ICLP’s study reveals underlying gaps in the Singapore consumer’s retail experience by modelling the brand relationships after the psychology of individual relationships with friends and romantic partners. Singaporean consumers were asked to rate their retail experience with brands on seven core relationship criteria – recognition, rewards, reciprocity, reliability, respect, trust and communication. These were then mapped on to a model based on Sternberg’s Triangular Theory of Love, in partnership with an expert on relationship dynamics, Professor Ron Rogge at the University of Rochester in the US.
“Devoted consumers”, who are the marginal minority in Singapore, are those most willing to share personal information, opinions and desires with their favourite brands, and are least likely to stray to competitors. Notably, 92 per cent of customers who fall into this group would recommend a brand to which they are devoted. This is a significantly higher proportion than for consumers in the other types of relationships with their retail brands. Only 12 per cent of customers in a “liking” relationship would recommend a retailer to others, 27 per cent in a “casual” relationship, 56 per cent in a “companionate” relationship, and 69 per cent in a “romantic” relationship.
“What we are seeing from our research is that many Singaporean consumers still relate to brands and retailers at a transactional level, so when times are uncertain, they easily resort to the myriad of choices at their disposal, often literally at their fingertips now,” says ICLP Singapore manager Bruno Tay.
“It’s not too late to turn things around, though. In fact, retailers now have a chance to truly stand out if they appeal to the heart, too – by approaching communication, reliability, consistency, reward and recognition from a human perspective.”
In essence, much like in a relationship with friends and loved ones, he says consumers are likely to engage more when they receive genuine gestures that surprise and delight them. The limited devotion among Singaporean consumers underlines a sizeable gap and opportunity for local retailers and brands.
