The importance of community in retail has never been higher. Building a tribe of people who love your brand, and spread the word on your behalf can drive significant growth. With 84% of people more likely to trust a referral, the power of a retail strategy centred on community cannot be underestimated.
Trust and community
A successful retail community is founded on trust. Consumers trust other consumers, even if they don’t know them personally, with 79% of consumers saying they trust online reviews as much as personal recommendations. The explosion of social media has sky-rocketed our networks way beyond ‘family and friends’, and a shopper’s recommendation can be seen (and acted on) nationally or even globally.
Research carried out across 14 countries to build the Edelman Trust Barometer found that 88% of their respondents made shopping decisions based on trust. As Edelman puts it: ‘Trust is the new brand equity’. Trust is what creates brand advocates and ambassadors, those shoppers who are in love with your brand and who are happy to tell the world.
Connection, communication and clients
A retail community is about more than product – communities are strongest when there is a connection with the brand’s purpose or lifestyle, and opportunities to engage. Consider an exercise clothing retailer who runs yoga classes in their brick-and-mortar store, or a kitchen equipment brand that runs cooking demonstrations.
Personalised communication is also important for building advocacy and brand ambassadors, with 71% of shoppers feeling frustrated when their customer experience is not personalised.
The secret to building a retail community is to focus on the clients you already have, in order to win new ones. Retailers need to focus on customer retention, identifying loyal customers, and nurturing them to become brand ambassadors and advocates who lead your retail community.
The role of retail technology
Retail technology can play an important role in helping to develop customer advocates and retail communities. Loyalty programs play an essential role in retention and advocacy, helping you to understand your customers, nurture them and build trusted relationships.
The right loyalty program will help you build your community of loyal brand advocates, by engaging them, rewarding them and making them feel like the VIPs they are within your business.
What to look for in loyalty
Not all loyalty programs are created equal of course, so if you’re going to get the best results, and build a strong community, here are our top tips for what to look out for when selecting and implementing your customer loyalty solution.
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