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Why The Future of Customer Loyalty Depends on Meaningful Interactions

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Facebook’s Group Director Dan Robinson dissected why customer loyalty is being disrupted, and why the future of loyalty depends on meaningful, one-on-one interactions.

What aspect of a business can now be described as “easy come, easy go?” Customer loyalty.

New technologies are constantly evolving, and customers are provided with more choices than they have been prepared for. As a result, brands and agencies today need to establish new value and come up with new tools to drive customer loyalty.

However, what is deemed “value” in this environment, and how is new technology helping?

At Social Media Week London 2018, Facebook’s very own Group Director, Dan Robinson, talked about why the future of loyalty centers around relevant, one-on-one interaction with customers.

Customer loyalty has been disrupted

According to Robinson, 77% of customers say they are more likely to switch brands than they did three years ago, and there are three reasons for this.

  • People are changing. “If there’s one thing that changes faster than technology, it’s people’s expectation,” said Robinson. It’s an era where immediacy has come first.
  • The rise of disruptors. More businesses are popping up on a daily basis. According to Robinson, there are 90 million business pages on Facebook, and on every single day, there are 35,000 new ones that are being created.
  • Government and regulators. We live in a time when these two factors are actively encouraging innovation along with competition.

Poor customer service drives customers away

Robinson described poor customer service as “the biggest kicker” of businesses. He cited stats that show 52 percent of customers switched brand in the past year alone, due to poor customer service.

“And that is costing £201 billion for UK businesses,” said Robinson.

Building fast, convenient, and personal customer service

Robinson thinks that the solution to this problem is through new and better customer service tool, like the gift bot that LEGO has developed, which lives on Messenger.

According to Robinson, messaging is the fastest growing form of communication. Every day, across WhatsApp and Messenger, there are 100 billion messages being sent out.

“64 percent of people choose messaging a business over picking up the phone or sending an email,” said Robinson. “It means that expectations for business have changed.”

LEGO’s gift bot, Ralph, helps customers pick LEGOs by asking a series of questions that the bot uses to base its picks upon. Once finished, the chosen gift will be in the basket, which means customers are only two clicks away from purchase.

Since LEGO started experimenting with the bot last year, the result has been telling — ads that people click through to be directed to Ralph has a 3.4x higher return, compared with those that direct them to the LEGO website.

“In summary, we think the answer is to build a fast, convenient and personal customer service,” Robinson said. “It not only keeps customers, but drives sales and profitability.”

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