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The majority of Indian consumers are now in less committed relationships with their favourite retailers than ever before, says a study by global loyalty marketing agency ICLP. Only 21 per cent are devoted to some retail brands. Devotion is key to growing high-value, enduring relationships between people and brands, says the study.
ICLP surveyed consumers in India to rate their experiences with friends and romantic partners, as well as brand relationships, on seven core relationship criteria. Those were recognition, rewards, reciprocity, reliability, respect, trust and communication. By partnering with Prof Ron Rogge, a global authority on relationship dynamics, from the University of Rochester, the company was able to create a model that is based on Sternberg’s Triangular Theory of Love. The theory focuses on three key components of a relationship: intimacy (willingness to share information with a retailer), passion (brand enthusiasm) and commitment (loyalty), which, put into a retail context, allows brands to foster increasingly devoted relationships with customers.
The study found that devoted customers are the most willing group of consumers to share personal information, opinions and desires with their favourite brands, and are least likely to stray. Ninety-seven per cent of customers that fall into this group would recommend a brand they are devoted to. Of the other five relationship groups, levels of advocacy vary significantly. Only 15 per cent of customers in a ‘liking’ relationship would recommend a retailer to others, and 34 per cent in a ‘casual’ relationship.
To foster more devoted customer relationships, retailers should encourage brand advocacy, create stronger rewards programmes, take time to understand customer needs, build respect and trust and communicate better.
Professor Rogge said, “Our analyses suggested that the same seven basic types of relationships emerged for both brand and close relationships.” Anurag Saxena, Country Head & GM, ICLP India, said, “Relationships are fickle and need to be nurtured with care, so retailers looking to build and maintain devoted customer relationships should seek to truly understand what the emotional factors are that drive consumer loyalty.”
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