The battle for consumer loyalty has never been more intense.
With customers spending more money than ever, and with new services coming on line at a pace of about 20 per cent per year, it’s no wonder consumers are anxious.
But that anxiety could be a big mistake.
A key reason is the growing importance of service and loyalty to businesses, especially with consumers spending more than ever on their own.
Service loyalty is growing at double the rate of consumers, according to research from the consulting firm Technomic.
And the demand for service is growing, too.
That’s driven by the ever-expanding range of services that customers can choose from, whether it’s Netflix, Amazon, Spotify, Google, Uber, Lyft, Amazon Shopping, Amazon Prime, and many others.
“The consumer wants to know what they are getting for their money,” said Gary Bensimon, chief executive officer of the consulting group Technomic, in an interview.
“They want to know they are not going to pay a lot more than they need to, and they want to be able to switch between those products and services at any time.”
“Service is the most important thing, and loyalty is the least important thing.”
In the coming years, as consumers have more and more choices, it will be important to ensure that their loyalty is a key component in their decision-making process.
And that will require better customer service.
While the number of people with internet access has dropped dramatically over the last five years, the number with service has grown more rapidly, according an annual report released last week by the consumer research firm Consumer Intelligence Research Partners.
According to the report, consumers spend about $9,000 on internet services per person annually.
That number has grown by almost 20 per-cent annually since 2008, to about $15,000.
That includes a surge in the use of smartphone services, which are used by 20 per of US adults and the number is growing.
“The number of consumers with internet is up from 2.7 billion people in 2009 to 3.6 billion people today, while service is up nearly 40 per cent,” said Bensham.
“That is not only a big part of the reason we are seeing a lot of growth in the service business, but also it is one of the drivers of the growth in consumer loyalty.”
It’s no coincidence that the growth of online services is coming as a result of the consumer’s desire for a more seamless, convenient, and more personalized experience, said Bensen.
The consumer is spending more on everything.
Bensham and other industry experts have been saying for years that online services are increasingly being used to connect people across the globe.
“The consumer has been going to more places than ever before to get their news, to get the news, and to make their own decisions,” he said.
“So, to be in a situation where the consumer has to have their news delivered to them is going to be a challenge.”
The trend is likely to continue.
As technology and services are introduced into the marketplace, Bensman expects to see a big shift in the way people communicate with one another.
That will require a more personalized approach to service and service loyalty.
But the battle is not over yet.
While the trend towards more online services and services loyalty has been building for some time, there are still significant barriers to overcome.
For example, consumers are also buying and renting a home with the expectation of getting the service of their choice.
In the case of Netflix, for example, people have the option to choose a different service than the one they currently use.
But they’re also paying extra for a subscription.
When it comes to service loyalty, Bensen said there are three main barriers to overcoming: consumer needs, technological infrastructure, and market forces.
Consumer needs are rising, and as the number and quality of internet connections grow, the demand is going up, too, said Ben Schulman, president and CEO of the industry group InformationWeek.
A service such as Netflix is a perfect example of the technological barriers that will need to be overcome if consumers are to get a good experience online.
“Netflix is a service that will be very important for a lot people, but it’s a service you can choose,” said Schulmann.
“You can choose it for the speed of its delivery, or the number or quality of your data or the quality of the service.
If you want to watch Netflix at a high speed, then you will get a lot faster than you would if you are watching Netflix at low speed.””
And the problem is that in order to get to that speed, you will need a very robust internet infrastructure.”
The next generation of consumer loyalty could include technology, said Schularman.
“In order to make that service that people can get on demand