In a typical customer journey, so much of the marketing effort centres on customer retention and loyalty – after all, it’s cheaper and easier to keep a customer than to win a new one, right?
New research from McKinsey suggests the fight for future market may no longer be as much about keeping customers happy as it is about getting them in the door in the first place.
In today’s digital world, the concept of loyalty is becoming more and more elusive as customers are enticed into relationships with new brands via clever online marketing, the influence of friends and family, a desire to get ‘the best deal’ and the sheer volume of choice.
The extent to which your business is impacted by this shift away from customer loyalty depends somewhat on the industry in which you operate.
According to McKinsey’s latest quarterly update, purchases in mobile, auto insurance and investments are much more likely to be loyalty-driven than shopping-driven – but if you’re working in financial services, you’re in for some trouble.