Consumers Are Demanding The Ultimate Experience TODAY Instead Of Promises Tomorrow

I've been surveying countless consumers to discover that many of them have opted out of many loyalty programs that they used to be enrolled in. Most have narrowed down their interest in these programs to one or two at the most or none at all. This is a sharp contrast from the high level of interest in Loyalty programs that we experienced 5 to 10 years ago.

There are some logical reasons for this new trend. Firstly, loyalty programs seem to rise and fall in popularity with levels of consumerism. Prior to our last recession, we were in a state of artificially driven hyper-consumerism. Consumers were buying goods like it was their last day on earth and frequenting stores and internet sites relentlessly. As they bought more goods, loyalty programs seemed like a good idea. Their volume shopping habits could be used to earn some free flights with airlines, or some small trinkets on other plans to add to the goods they usually purchased but didn't need in the first place.

Secondly, when the recession hit, disposable income combined with the massive service level cutbacks created a number of effects. Consumers became much more selective in what they aspired to purchase and migrated more to a needs based as opposed to a wants based mentality. Their hard earned dollars now need to go much farther and buyers have become more conservative and buy with scrutiny.

Thirdly, there was a new obstacle to buying. Low service levels have created many disenchanted consumers in a very competitive retail landscape. This has eroded loyalty earned in the past. Moreover, consumers now want the optimal buying experience TODAY and expect the same or better experiences if and when they return to your store.

What's the message they're giving us? Essentially, they're telling us that they'll be loyal to the retailer who delivers a great experience today and every time thereafter. They are no longer interested in having a series of mediocre buying experiences with the future promise of some reward through your loyalty program. Consumers may be thinking further into the future about the personal implications of their purchases, but they're becoming mush more short sighted when it comes to evaluating retailers. In their minds, "You're only as good as your last race..."

The notion of instant gratification is not surprising, especially when we consider our younger consumers who have grown up in a technological fast-paced lifestyle. They want you to make them happy today and every day. Forget about distant promises in the future.

The decline in Loyalty Program interest is no surprise. What's important to appreciate is why. Consumers are changing and will only give you one chance TODAY to impress them. Tomorrow's promises will fall on deaf ears!

Take Action Today:

1. Impress on your team how important the customer experience is to contemporary consumers. It's critical to deliver the ultimate experience TODAY.

2. Consumer loyalty is fleeting and will rarely give a retailer a second chance.

3. Review the level of service you offer and consider redesigning what your store delivers around the five classic elements: Value, Service, Selection, Convenience and Ambiance.

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