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Satisfaction and loyalty link to profitability

Satisfaction and loyalty link to profitability

A major, well-known UK fashion brand with a very diverse mix of customers had been losing profitability over several years. The purpose of the research was to better understand frequent, infrequent and lapsed customers' behaviour and perceptions of the brand, and how this was impacting their likelihood and reasons to shop.

The research study comprised of focus groups, an in-home diary study, and a lengthy self-completion questionnaire, discussing all aspects of customers relationship to the brand, perceptions of the product range, personal perceptions of style, confidence with fashion, and past and present purchase behavior. A Factor and Cluster analysis brought out distinct profiles of satisfied/loyals and dissatisfied/non loyals - illustrating that customers either loved or hated the brand. With this information, we were able to link each respondent to the store card database and investigate actual purchase behavior over time.

Our findings proved very powerful for senior management, as the information showed just how much business was being lost by having dissatisfied customers. With this, management was able to review perceptions of the brand and create a new marketing plan to tackle these perceptions.