Research report: Drivers of digital loyalty: Consumer behavior across key industries

Research report: Drivers of digital loyalty: Consumer behavior across key industries

Foreword 

2020 is a year we will all remember – one filled with uncertainty and change. And while a global pandemic tested the scientific community in ways that few have seen before, it also served as a catalyst for great change in consumer behavior. In the service of reducing human contact but still staying in touch, those who could shifted as many of their daily habits to contactless ways of interacting. In many cases, this meant using websites, mobile apps, and digital platforms for the first time. Many industry analysts observed that this great digital migration would have taken five or more years had it not been for the pandemic. 

At Mobiquity, we found ourselves wondering how newfound digital habits might impact consumer loyalty. Would consumers switch banks, doctors, and/or insurance policies if they had a bad digital experience? Would they visit a restaurant more often if it made digital ordering easier? And how did these new factors rank compared to the longstanding drivers of satisfaction in each industry? These are the questions we sought to answer for our clients in 2021. 

Between January and June, we conducted four surveys among over 5,000 consumers across ages, genders, and income brackets in the US. We asked them about their behaviors, both on-and offline, in banking, property and casualty (P&C) insurance, healthcare, and restaurants & convenience stores. In our surveys, we focused on understanding digital adoption, consumer satisfaction, and drivers of loyalty and switching. 

Key findings 

1. Adoption 

COVID-19 has led to an increase in consumer adoption of digital tools across industries. Consumers indicate the highest digital adoption in banking and the lowest in the P&C insurance industry. When it comes to feeling like digital tools fit with their lifestyle, younger demographics are consistently more likely to agree that there is a natural fit—except in banking, where people across age groups express this feeling consistently. 

• While website adoption was similar across age groups, younger consumers were much more likely to have adopted mobile app usage.
• Face-to-face interactions were consistently preferred by the majority of consumers over 56. For consumers 56 and under, healthcare was the only area where their preference for face- to-face reached a majority level (66%). 

2. Satisfaction 

Satisfaction with digital tools is relatively consistent (around 70% Top 2 Box Score) except for the convenience industry, where only 53% of users are satisfied with their experience. While we see some differences between older and younger demographics when it comes to digital preferences, interestingly, there is little difference between the satisfaction of older and younger consumers when looking at the use of digital tools. One possible explanation is that while older consumers seem to be somewhat less likely to adopt digital tools, once a tool is being used, customer experience and points of friction are more universal. 

3. Loyalty 

Across industries, the majority of consumers expressed that websites and mobile apps were important drivers of loyalty. Especially among those 56+, websites edged out mobile use (although loyalty was not explicitly explored in banking). In the industries where consumers were less likely to explicitly indicate digital tools as a driver of loyalty, the factors they listed— customization, clear and proactive communication, and data accuracy—are areas where digital will likely play a larger role in the future, and can be influenced by digital tools. 

4. Switching 

Across industries and age groups, over 1/3 of consumers indicate that they are more likely to switch the companies/ providers that they work with than ever before (switching was not explored explicitly in the areas of restaurants and convenience stores).

• In banking and insurance, growth will come from those under 56. Those 56+ are the least likely to switch any accounts in the next 12 months.
• While issues relating to cost and value are, unsurprisingly, consistently ranked within the top three motivators of switching, consumers also indicate that digital tools factor heavily in decisions to switch in all industries except retail.
• The top retail concerns, however, are factors that can be mitigated by digital tools, such as order accuracy, management of wait times, and communications around food safety and cleanliness.