Costco or Sam’s Club? Macy’s or Dillard’s? To which retailers do today’s consumers feel most loyal?
Based on results of its latest Retail Loyalty Index, COLLOQUY revealed that Costco and Macy’s come out on top when it comes to consumer loyalty. The survey asked 3,000 consumers across five geographical areas to reflect on personal experiences with retailers at which they shopped most often in the previous three months. Costco was the national winner in the Grocery category and the first choice of consumers in the Southwest and Southeast regions. Publix and H-E-B were close runners-up. The warehouse retailer was also the loyalty favorite in the Personal Care category. Wal-Mart was the runner-up in this category.
In the department store category, Macy’s claims the most loyal shoppers, followed by Wal-Mart, Target and JC Penney. However, the COLLOQUY Retail Loyalty Index also reveals that Wal-Mart is the dominant U.S. retailer when it comes to consumer shopping frequency. Consumers across all categories shop at Wal-Mart more than any other retailer.
Rick Ferguson, COLLOQUY’s editorial director, notes that “The survey results demonstrate that the traditional marketing mix has taken a back seat to a relentless focus on price. A marketing strategy focused solely on sale prices and promotions not only faces diminishing returns, but can also actually breed disloyal consumers. Our research results demonstrate that retail marketers have an opportunity to shift their focus from Everyday Low Price (EDLP) towards loyalty drivers that build true customer engagement, larger transactions and improved margins.”
Other survey results indicated that overall, consumers are most loyal to grocery stores where purchases are tied closely to family life and that loyal consumers typically recommend their favorite retailers to others.
COLLOQUY Managing Partner Kelly Hlavinka notes, “There’s a transition from the narrow focus on price. We’re leaving the Age of Frequency and entering the Age of Loyalty.”
To obtain a free copy of the COLLOQUY white paper, "The Loyalty Marketing Mix: Introducing the COLLOQUY Retail Loyalty Index,” visit www.colloquy.com/whitepapers.