June 21, 2006

What Drives Retail Consumer Loyalty?

by Tamara Mendelsohn

with Carrie Johnson, Chloe Stromberg, Brian Tesch

Executive Summary (This is a document excerpt)

As many loyalty programs fall short of their promises to create loyal customers, retailers struggle to understand what really drives loyalty. To find the answer, we surveyed more than 10,000 households to find out which retailers have earned their loyalty and to get their perspectives on what is most important in creating these relationships. Dell, Williams-Sonoma, Wal-Mart, and Payless ShoeSource top the loyalty list due to their prices and product quality — not loyalty programs.

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