Whether due to the rise of e-commerce, the disruptions of the pandemic or other factors specific to a given industry, the old patterns of consumer behaviour no longer hold true in the current marketplace.
According to Cheetah Digital’s recently published 2022 Digital Consumer Trends Index, even the 76% of UK consumers who define themselves as loyal to certain brands say they’d still buy from competitors if it was cheaper or more convenient to do so.
Habit vs Loyalty
70% — the percentage of UK consumers who frequently buy from the same company, yet say they’re not necessarily loyal to the company
Humans are creatures of habit and tend to stick with what they know and trust in the absence of any compelling reason to do otherwise.
Often, brands will mistake habit for loyalty. But the two are definitely not synonymous: habits are developed, whereas loyalty is earned.
In fact, 70% of UK consumers who frequently buy from the same company say they’re not necessarily loyal to the company.
Reports also indicates that 76% of UK consumers who define themselves as loyal to certain brands say they’d still buy from competitors if it was cheaper or more convenient to do so.
Emotional and genuine loyalty is an outcome - a goal that can only be achieved by truly knowing and understanding your customers.
Every action, input and communication a customer receives needs to make them feel valued and respected.
Product vs Trust
110% — The YoY increase in consumers citing “the ability to understand me as an individual” as a factor of brand loyalty.
There are many factors that drive brand loyalty, however, the one that beats them all is the recognition of the individual.
There’s been a 110% YoY (year-on-year) increase in consumers citing “the ability to understand me as an individual” as a factor of brand loyalty.
The other drivers of loyalty are fairly simple and probably ones you already know, like great product or service (55%), great customer service (38%), useful loyalty program (34%) and convenient to use (31%).
This rise in conscientious consumerism, where customers proactively educate themselves on a brand’s corporate, ethical and environmental values, is also a burgeoning loyalty driver with staying power.
Of course, investments in those areas will ensure a long-term return and will help you differentiate from competitors. But there comes a point when a product can only be so good or so cheap.
Eventually, there needs to be another level of effort to keep consumers loyal once all of the other factors equalise.
That’s where relationships come in. It’s vital to understand how consumers feel not just about the product they bought, but the experience they had when they bought it, including who they bought it from.
Customer Acquisition
Over a third of UK consumers (35%) say they’re not loyal to any given brand because the brand did nothing to encourage their loyalty, even though they’re frequent shoppers.
Things UK consumers say brands can offer in exchange for their loyalty:
Recognition
Rewards Points
Exclusive/Early Access
Personalised Recommendations
Discounts
Contests
Community Features