An Advice to Escalate Electronic Consumer Loyalty

Nov 8, 2021 • 7 min read



The consumer electronics industry is always fascinating. They purchased less frequently than those in other industries. With such a long upgrade cycle, brands may find it difficult to build loyalty and encourage repeat purchases. Only 20% of consumers say they are "loyal" to their current electronics manufacturers, implying that the other 80% are not.

A negative experience for a customer can result in a 50% or greater drop in customer loyalty. Every month, hundreds of new products are introduced into the market, providing consumers with an enormous amount of choice. Customers will switch from brand to brand, purchasing what they believe is the best product at the best price. 



Consumer electronics companies are still fine-tuning their strategies for newsletters, site accounts, and product registration - all of which are important tools for keeping customers engaged and motivating repeat purchases. To establish themselves in the minds of their customers, more savvy brands have established robust communities on their websites or created shopping apps. While a positive product experience is the best retention mechanism, brands can develop touchpoints in the interim to build brand affinity and encourage loyalty. 

Customer retention is challenging but not impossible. Data shows that customers who participate in a sustained customer loyalty program spend 67 percent more. Customer loyalty programs are not intended to be short-term customer retention strategies. The more extended customers enjoy loyalty programs, the more likely they will stick with a specific brand and remain loyal. 

This article will cover:

  1. The Challenge in The Electronic Consumer Loyalty
  2. Why does Electronic Consumer Loyalty matter?
  3. Tips on Building Electronic Consumer Loyalty


The Challenge in The Electronic Consumer Loyalty

Companies in the consumer electronics industry are constantly striving to improve with each new product and innovation. What distinguishes the giant company from the rest is the importance they place on their product. The main factors that influence consumer sentiment are the product's longevity and the lifestyle it provides to the customer. Customer loyalty, on the other hand, is volatile in this Industry. Winning is difficult, even for large corporations.

Electronics companies face a difficult task in ensuring that their product is robust and efficiently service their customers. The consumer has a plethora of options to choose from, and these additional options increase market competition. It facilitates brand switching, which is a risk that businesses must avoid.

68 percent of customers leave because of a brand's "perceived indifference." How can brands provide customers with a convenient, consistent experience that makes them feel valued?

The customer loyalty challenge lies in a brand's ability to personalize the customer experience consistently, in a high-quality way. Personalization was not a scalable concept, so this was frequently a challenge. Because of the human resources required, understanding buyer behavior and gaining ongoing customer insights was not feasible.


Why Loyalty Matters?

Apple's customer satisfaction and loyalty have been growing steadily over the years, reflecting how consumers view the brand. According to NPS (Net Promoter Score) Benchmarks, Apple's NPS score in 2017 was a resounding 72, significantly higher than the average NPS score of the consumer electronics industry.

Contrary to popular belief, Apple was an early supporter of Net Promoter Score. The popular book The Ultimate Question by Fred Reichheld explains how, before 2006, Apple used Net Promoter Score to influence its practices.

Apple's focus on constantly improving and increasing Net Promoter Score affects every level of work, from the big picture to day-to-day store operations. Reichheld describes how Apple uses NPS in the management of its retail stores:

"Comments from customers help store managers prepare for service recovery calls with Detractors to close the feedback loop. Together with the customer comments, the outcomes of these calls provide important coaching and feedback messages that are passed along to employees."

If Apple's primary goal had been to make more money, it would not have been as successful as they are now. Instead, they concentrated on their customers, and it paid off. Apple is now one of the most successful and profitable technology companies in the world. It controls more than 40% of the US smartphone market and has an incredible 87 percent brand loyalty in the US and Europe.

When rising ad prices are factored in, the importance of customer loyalty becomes clear. With customer acquisition costs rising, investing in retention may be the saving grace for B2B businesses in 2020. Apple and other behemoths frequently appear to be insurmountable competitors. But keep in mind that they grew to that size due to their dedication to the customer.



Tips on Building Electronic Consumer Loyalty

If you want to win a business, it all starts with customer loyalty. Customers are more likely to stick with a brand that offers a loyalty program, and the ability to earn rewards changes their spending behavior, according to 84 percent of customers.

One of the primary benefits of a loyalty program is that it has an immediate and noticeable impact on customer retention. A retained customer is a valuable asset to any brand because they generate more revenue, have a higher likelihood of becoming brand advocates, and represent the brand as a true brand loyalist.

You may consider these pieces of advice to boost your Electronic Consumer Loyalty:

  1. Manage the Loyalty Program

    A strong Loyalty Program ensures that customer information is available to improve service. This program adds significant value to the company by making interactions between customers and agents more efficient and effective. It can assist in resolving consumer inquiries about general information, product features and capabilities, technical support, product replacement, orders, and exchanges.

    It all boils down to your customer. If customers are pleased with the products they purchase, they will most likely recommend them to others or discuss them online. As a result, those customers are more likely to become Promoters for the brand they like, raising its NPS score.

  2. Optimize Interactive Voice Response (IVR)

    Different processes in electronics require complex call routing rules. Setting up a simplified IVR will allow consumers to be routed to the most appropriately skilled personnel. Interactive Voice Response (IVR) is an automated phone system technology that allows incoming callers to access information via a voice response system of pre recorded messages without having to speak to an agent, as well as to utilize menu options via touch tone keypad selection or speech recognition to have their call routed to specific departments or specialists. This can contribute to a more streamlined and pleasant end-user experience. An effective IVR can significantly reduce repeat calls, total minutes, call transfers, and abandoned calls.

  3. Optimize Social Media

    The electronic Industry will also benefit from increased interaction with customers through social media channels. Some consumer electronics companies, for example, are using online crowdsourcing platforms to encourage consumers to make suggestions for new products. Others have developed sophisticated online communities in which customers can interact with the company and with one another.

    These forms of engagement are especially important because these companies, like many consumer packaged goods companies, operate in an indirect channel model. Unless they work with retailers, they rarely have access to large amounts of consumer data. Direct consumer engagement via social media provides an opportunity to close the gap with customers and drive customer-driven innovation.




Retention should not be treated as an afterthought by your company. Just remember, Apple and other behemoths frequently appear to be insurmountable competitors. But keep in mind that they grew to that size due to their dedication to the customer.

There are tons of tactics you can begin without enlisting the support of a marketing automation company like TADA. Please contact us if you have already investigated those strategies and are interested in implementing more advanced techniques. Discover how TADA can assist you in overcoming the customer loyalty challenge. Schedule your commitment-free demo today!

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Nida Amalia

SEO and Content Marketing Specialist who loves art, music, and movie.