Feefo’s latest report, The Consumer Benchmark: From Transactional to Value, discovers a growing desire for deeper relationships with brands. The most significant finding is that 54% of customers are more likely to buy again if they feel personally valued by a brand.
Here at Feefo, the value exchange is on the tip of everyone’s lips – we talk about it in the way we give back to consumers with access to authentic customer reviews, in the way we empower our clients to analyse their own feedback, and even in the advice we provide our clients through our Customer Success team.
But what does that mean for you?
Switched-on businesses listen to their customers. It’s evident businesses who are customer-obsessed thrive:
- Customer-centric companies are 60% more profitable than companies that don't focus on customers
- Investing in customer obsession will yield at least a 700% ROI over 12 years
- Businesses focused on customer experience can deliver 2x more growth than industry peers
We already know it pays to be customer centric. Many are still learning how to do this authentically and listen to their customers. When brands listen to their customers and truly put them first by offering an authentic value exchange, everyone’s a winner.
What is a value exchange?
A value exchange is a transaction between a consumer and a business that results in each person receiving something of value. For example, consumers share their data in exchange for personalised offers, and businesses receive insight from their data.
Why do switched-on brands offer a value exchange to their customers?
A value exchange turns prospects into customers, and customers into advocates. Being able to recognise, reward and connect with consumers can build trust and drive long-term, repeat business - to avoid repetition of customers.
A key part of keeping customers loyal is winning their trust. A value exchange can do this, and helps brands remain resilient in a dynamic market.
The value exchange customers give to brands
There are three types of value customers give back to brands, beyond the transaction:
- Data
- Feedback or insights
- Advocacy
These are the elixir for brands survival, and it pays for brands to recognise this value beyond the monetary.
What brands exchange
Consumers have high expectations for brands, especially since the recent turbulent economic landscape and the set-in of the cautious spending mindset. Contemporary consumers are socially and sustainably conscious, seek brands whose values align with their own, and desire connection beyond the transaction. They also recognise their own power beyond the purchase and are aware of the value of their data.
The Consumer Benchmark report revealed that 64% of people are willing to share their personal data with brands in exchange for:
- Exclusive discounts or offers – 40%
- To improve product or service quality – 29%
- To receive personalised product recommendations matched to their wants and needs – 26%
- To contribute to community benefits – 19%
While customers clearly expect a quality product or service, they also expect more in exchange for their data. That said, people are 97% more likely to repeat purchase from a merchant that replies to reviews. Consumers, connection and recognition can be a form of value exchange.
There are three types of value brands give back to customers, beyond the transaction:
- Connection
- Recognition and reward of loyalty
- Transparent and relatable brands values
Four ways to create a value exchange for a competitive differentiation
An authentic value exchange is something every brand should be offering their customers to ensure long-term advocacy and repeat business. But how can they do that? There are four areas of engagement brands should focus on:
Build a community
People like to connect with people like them, whether through authentic customer feedback, events or forums. Consumers like to hear from genuine people who have engaged with the brands they like, or the brands they’re considering purchasing from. Create space for your customers to connect – through an authentic feedback platform where prospects can hear from people like them, or a dedicated forum, or though loyalty events.
Recognise and engage
Your customers want connection. If you can’t respond to every review, you can demonstrate you’re listening to your customers by sharing reviews on social media or in marketing materials. Thank every customer that takes the time to leave their feedback, and consider setting up surveys to invite their opinion long after their purchase.
Listen to and respond to customer feedback
Listening to your customers isn’t just about collecting verified feedback. It’s also about knowing how to analyse and respond to patterns and trends in your data. Feefo Analytics enables brands to recognise trends and spark actionable insights. Find out more about how to recognise trends data and when to respond. Collecting customer feedback is about understanding where you’re going right where you could improve, but also where there are opportunities to develop your offer to meet your customers’ ever-evolving needs.
Reward loyalty
Although many customers want recognition for their loyalty, they don’t necessarily need monetary recognition. Discounts are desirable, but so are multi-buy schemes, early access to new products or services and exclusive events that celebrate loyal customers. Think outside the box when it comes to rewarding and recognising repeat customers.
Find out more
Enhance your value exchange with a verified customer feedback platform, or read more about how to provide value across the customer journey.
