Dive Brief:
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Shoppers who often visit certain retailers are just as likely to go to other retailers in the same category, according to new research from purchase-based advertising research firm Cardlytics.
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The study, based on research on transactions for some 70% of U.S. households, found that true loyalty is found among those who might make fewer trips to stores, but when they do, it’s always the same one.
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Five retail channels were featured in the study, including restaurants, apparel, gas and convenience, grocery, and general retail.
Dive Insight:
This study looked at the percentage of total channel visits rather than by-store visits, which is how individual stores might measure loyalty. This shows that loyalty, such an important aspect of sales and customer relationships, may need to be reevaluated by merchants. “Light” customers, who may actually visit less frequently but are more often to go to the same place, may be more valuable to a retailer than heavy shoppers who may be basing their decisions on factors other than dedication. That could be one reason why price-based enticements don't really foster loyalty, even if they do foster visits.