Saturday, May 29, 2010

Low prices makes customers loyal

In Loyalty Index 2010, a COLLOQUY’s latest study of U.S. retail consumer loyalty ratings and attitudes, there is a shift in driving factors for achieving loyalty from customer service to price.

"For years, small independent and mom-and-pop retailers have complained that when Walmart strode into their towns, their businesses crumbled due to competition they couldn’t overcome. Larger, established retailers have been battling Walmart for the past decade or so at the sales register, but have managed to hold on to customers loyal to their brands. However, with the recession acting like a second-stage booster rocket, Walmart has upended the status quo among its national retail peers by chewing into their last remaining frontier— customer-professed loyalty—at least for now." Read the whole report here.o