Study shows personal ties key to customer loyalty

Low price is no longer an incentive to entice Chinese consumers, especially the millennials, and merchants should forge personal ties to retain customer loyalty, according to a latest study by consultancy Accenture.

Three-fourths of the 1,303 consumers surveyed have switched providers when they shopped in the past year, said the US-headquartered firm. Almost a quarter of the respondents said their expectations of brands have changed radically.

While organizations spend billions of yuan each year on customer loyalty programs like membership campaigns, the fact is, they are not effective. So, new forms of retail sales have emerged, mainly driven by creative digital experiences, said Yu Jin, managing director of Accenture Strategy Greater China.