A new survey of 30,000 U.S. consumers by IBM finds that, on average, shoppers will endure 3.1 negative experiences before they end their allegiance to a particular retailer.
The study, "Shopper Advocacy: Building Consumer Trust in the New Economic Environment," also shows that tighter budgets and lower confidence have greatly affected consumer behavior. Two-thirds of shoppers said they are postponing purchases or buying fewer items, and 60 percent said they are more often shopping for products on sale and using coupons.
The survey revealed a category of consumers that IBM called the "Shifters" -- shoppers who move their purchases to new retailers. Shifters spend 37 percent more on average per month and 32 percent more during each shopping trip than non-Shifters. Shifters also have a higher average household income than non-Shifters, and more Shifters have more discretionary spend this year versus last year.
Another shopper category, Advocates, has nearly doubled from 2007 to 2008, according to the survey. Advocates are customers who recommend their preferred retailer to friends and family, who will buy more when the assortment expands and who will remain loyal to their preferred retailer when a comparable competitor enters the market.
"For retailers to succeed in the new economy, organizations must nurture both Advocates and Shifters," said Fred Balboni, Global Retail Industry Leader, IBM Global Business Services. "Shoppers are calling the shots. Savvy retailers can use the new economic environment as an opportunity to drive revenue, margin growth and customer trust. Those that can strengthen relationships with new and existing customers will differentiate and dominate as the economy recovers."