Intelligent SME.tech Issue 27 - Page 52

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Is this the end of customer loyalty ? O ver half ( 56 %) of Brits have switched from a favourite brand they were loyal to due to increased inflation and the cost of living crisis , while one in five shoppers ( 19 %) agree that they can ‘ no longer afford to be loyal ’. That ’ s according to the second annual Emarsys Customer Loyalty Index .

The research , which includes data from more than 2,000 UK shoppers , examines how different attributes – age , gender , geography , geopolitics and ethics – affect loyalty in an economic environment suffering from high inflation , fiscal uncertainty and unprecedented political instability . Of those surveyed , 64 % have changed their attitude towards loyalty over the last 12 months .
Price trumps loyalty
When it comes to dropping their favourite brands , the number one reason cited by shoppers was price increases , with 56 % stating this as their reason for abandoning their loyalty to a shop or brand .
A difficult shopping experience followed close behind with 55 %, just ahead of selling poor quality products ( 47 %).
Brits stay loyal to UK and Ukraine
Despite the financial pressures facing many consumers on the home front , UK shoppers are remaining loyal to certain supermarkets , brands and suppliers .
Fifty-seven percent of UK respondents said they are staying loyal to UK-made products rather than those produced abroad . Thirty-one percent of Brits are also prioritising products from Ukraine . On the flip side , the Loyalty Index indicates that UK shoppers will actively avoid products produced in China or
Russia ; 42 % of consumers are less likely to buy items made in China , while more than half ( 57 %) of us are less likely to buy Russian-made products .
Some groups are more pricesensitive than others
Across the board , 56 % of Brits say inflation has impacted their loyalty to a brand , with many moving away from branded items in order to save money . But when this data is parsed along income , gender and political lines , a different picture emerges .
From an economic standpoint , loyalty is obviously easier to demonstrate for those that feel less financial pressure . Seventy-one percent of those in households with an income of £ 120,000 or more say they consider themselves ‘ loyal ’ to a certain type of retailer , brand or store – compared to less than half ( 44 %) of respondents in households with an income of less than £ 8,000 .
Along gender lines , there are some interesting splits between the loyalty of men and women when purchasing : alcoholic drinks with 20 % of men remaining loyal and 15 % of women , beauty and skincare with 17 % of men remaining loyal and 40 % of women .
Despite variation in the figures , there isn ’ t much conscious intent to remain loyal to many of these industries . Thiry-three percent of consumers would look to remain loyal to their food brands if a recession struck , but every other industry was less than 10 %; 28 % specifically stated that they wouldn ’ t look to remain loyal to any industry . �
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