Dive Brief:
- Good experience is the No. 1 reason customers are loyal to a brand, a Marqeta survey of 4,000 consumers found. Nearly 3 in 5 customers said that they are loyal to brands that provide a good experience, according to the survey released last week.
- The survey identified interchange fees and credit card fees as one of the biggest culprits of friction. Most consumers say they will abandon a purchase if they’re presented with a fee for using a credit card at checkout.
- Trust and loyalty go hand in hand, Todd Pollak, Marqeta’s chief revenue officer, told CX Dive. “People tend to trust brands that are transparent, easy to do business with, reduce the friction associated with purchase, remember their purchase history and use that data in order to more effectively merchandise,” he said.
Dive Insight:
To grow loyalty, brands should look to reduce friction and increase transparency, Pollak said. That includes disclosing fees before a customer gets to checkout.
“People want to feel like they're not being nickeled and dimed,” Pollak said.
Part of the issue is that merchants and subscription companies are feeling the pressure of inflation and passing that cost onto the consumer via fees.
“The Spotifys and the Netflixes of the world all are raising prices in an attempt to manage those costs that are increasing,” Pollak said. “Merchants have chosen to pass along those costs to the consumer, specifically around credit card fees.”
“As there's more and more pressure on merchants from a cost perspective, there is a desire to see how much the consumer can bear,” he said. “Consumers obviously don't love additional fees.”
Other factors that inspire loyalty include quality of product and brand persona. Almost half — 48% — said their loyalty was inspired by high-quality products or services, and 1 in 5 said a relatable brand persona kept them loyal.
