Word of Mouth Remains Vital for Loyalty in Digital Age

Photo by Michael Weidemann.

While customer reviews found on Google and Yelp are the new neighborly recommendations for nearby businesses, good-old recommendations from family and friends remain vital for loyalty in the digital age.

Forty-five percent of consumers say they first heard about a new retailer from family and friends, according to a new loyalty report by Yes Marketing.

Once they hit a new store, it’s the quality of products and services that keeps customers coming back. Forty-one percent of consumers ranked product quality as the number-one reason for loyalty to retailers, with a close 35% ranking price highest.

Perhaps surprising for a retail industry dominated by Amazon, the 1,000 retail shoppers surveyed by Yes Marketing did not name fast delivery as a top driver of loyalty. Only 3% said it was the top factor, but they did say it was crucial in their decision to try out a new retailer.

Pundits have speculated that loyalty is becoming less and less important as mobile and especially voice search drive the consumer toward the most convenient purchasing options. That may be true, but the report indicates loyalty remains a powerful factor, with 53% of consumers saying they are more likely to buy from a retailer they know and trust.