Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business. You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy.

Get it on Amazon (Kindle/Print)

Brand loyalty evaporates with 'out of stocks'

Almost half of the consumers questioned said they would only tolerate products being out of stock two or three times before switching to another supermarket, and nearly half said that, if they couldn't find their favourite brand, they would simply buy an alternative.

According to Scala managing director, John Perry, "It comes as no real surprise to me that shoppers' loyalty to a particular supermarket lasts only as long as they can buy the products they want. If they're not on the shelves, the customer will go elsewhere and it is the same story for brands themselves. If what they want isn't on the shelves, customers will simply pick an alternative."

Supermarkets can take some comfort, however, in the fact that less than one third of those questioned found any products regularly out of stock and this, Perry asserts, is due to the supermarkets' supply chain logistics programmes being so reliable.

"Competition between supermarkets is fierce and the criteria are very high for companies to get their products on the retail shelf, so effective management of supply chain is critical," Perry explained. "Looking at the results of this survey, it seems the common perception of brand loyalty is something of a myth, as customers' tolerance levels for out of stock products is very low in the grocery sector."

Despite this, many brands still seem unconcerned. Scala also commissioned a survey of some of the biggest global brands, and over one quarter of those questioned (26%) - representing a cross section from the FMCG and grocery sector - did not view 'on-shelf availability' as a key success factor for their company.

According to Perry, supplier and retailer supply chains are very sophisticated and generally achieve high service performance throughout, but achieving the ultimate goal of peak on shelf availability is elusive and requires supreme levels of collaboration between the major brands and retailers.

The survey also noted that over three quarters of those interviewed shopped in the supermarket rather than online, with 18% saying they did both. When asked whether supermarkets or online provided better availability, over half said that supermarket shopping was superior to the online version.

"There are highly developed supply chain systems in place, however the margin for human error in the last 50 metres to shelf can ultimately determine the reputation of our favourite brands," Perry concluded.

Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business.

You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy. Grab this goldmine of easily adaptable and up-to-date strategies, walk-throughs, trends, technologies, research, suppliers and partners, plus all the supporting arguments you need to build a solid CX strategy.

While most marketers could list maybe a dozen key points for improving their brand's Customer Experience (CX), the researchers and writers at The Marketing Factbook have identified FORTY main 'CX Keys' which will help you drive your customers to new levels of delight, loyalty, advocacy and profitability.

The areas in which customers have direct contact with your organization are perhaps the most obvious places in which CX improvements can be made, and this report addresses all 24 of these 'Direct CX Keys', applicable to offline and online businesses alike.

At the same time there are many other areas that indirectly affect CX (such as the supply chain, policies and processes) in which every business can make simple but far-reaching improvements. This report guides you through the problems and solutions for all 16 of these 'Indirect CX Keys', many of which are often forgotten or under-played even in the best CX strategies.

Get it on Amazon (Kindle/Print)