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Why advocacy matters to retailers: Insights from five retail segments

Surveys conducted across five retail segments – grocery, large-format apparel, mall-based specialty apparel, drugstore and online – reveal key attributes that help turn everyday shoppers into loyal Advocates. And financially speaking, Advocates are the most valuable customers of all.
IBM Institute for Business Value study
Industry: Retail services
Last updated: 30 Jan 2008
Summary
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Summary

According to a 2007 series of IBM surveys that polled over 19,000 consumers, those retailers that integrate customer-focused initiatives throughout their businesses have a greater number of Advocates and often outperform their competitors. Advocates are defined by three criteria: they are customers who recommend their retailer to their friends and family, who would increase their purchase amount if their retailer offered products found at other stores, and who would stay with their retailer even if another retailer offered a competitive product.

Transforming customers into Advocates is not a simple task, but retailers that are customer-focused, placing the wants and needs of their customers at the center of all core business strategies, are well-positioned to turn shoppers into Advocates. Further, customer advocacy often rewards retailers with a handsome financial benefit.

IBM surveyed U.S. consumers from five retail segments – grocery, large-format apparel, mall-based specialty (MBS) apparel, drugstore and online retailers – to identify the key retailer attributes that drive consumer advocacy. Knowing the underlying reasons why customers become Advocates enables retailers to pursue customer-focused initiatives and investments with greater precision and success, enabling them to reap the many rewards of turning their customers into Advocates.

To read the full report, download the PDF file at the top of this page.

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About the authors
iMelody Badgett
Melody Badgett is a Senior Managing Consultant and currently the Retail Team Leader in the IBM Institute for Business Value.

iMaureen Stancik Boyce
Maureen Stancik Boyce, PhD, is an Associate Partner and the Distribution Sector Team Leader for the IBM Institute for Business Value.

iLaura VanTine
Laura VanTine is a Managing Consultant with IBM Global Business Services.

iYolanda Wang
Yolanda Wang is the Global Marketing Manager for IBM Global Business Services Retail Industry.
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