Most UK adulta are more likely to visit a store or supermarket if it offers a loyalty or rewards system, a new report has claimed, stating that majority UK adults view trust in a brand as important to them though cost-of-living crisis continues to play a significant role in shifting consumer behaviour.
According to "State of Spend: Customer Loyalty" report, based on the spending habits of over 22 million UK bank accounts, along with a poll of 2,000 UK adults conducted by Opinium assessing customer loyalty, despite consumers being increasingly cost-conscious – there is still room for brand loyalty to influence spending behaviour.
Three in five (61 per cent) said they are more likely to visit a store or supermarket if it offers a loyalty or rewards system – rising to 70 per cent for the 18-34 demographic.
Seven in 10 (69 per cent) UK adults view trust in a brand as important to them when making a purchase, whilst three fifths (59 per cent) say that they have been loyal to brands for “as long as they can remember” – a clear indication that brand loyalty is well and truly alive.
However, particularly off the back of the cost-of-living crisis, affordability is vital in shaping and influencing purchasing habits. UK adults rank price as the most important factor in the decision-making process, followed by trust in a brand and convenience.
With consumer behaviour in flux, the report includes analysis on some of the factors creating this environment, along with recommendations for business leaders on how they can inspire brand loyalty, whilst also attracting to new customers.
Two-thirds (64 per cent) of respondents named affordability as the most important factor when deciding where to shop, a clear indication of impact of record levels of inflation on consumers’ disposable income. In an environment where brand loyalty has come under question, this research shows how solutions such as targeted offers and rewards can inspire commitment to brands.
Lucy Whittemore, senior vice president of UK Advertising at Cardlytics said' “Whilst affordability will always be key for consumers, particularly in tough economic times for consumers and households, building brand loyalty is key.
“Consumers are making savvy decisions based on what suits them – and often, which brands treats them best. For businesses in hospitality, retail, and travel, where competition is high and interaction with customers is frequent, data will be key.
“By gleaning insights from customers’ spending data, brands can create, tailored, relevant offers for consumers – both new and existing. This can help them build a deeper connection with the customer, fostering loyalty and trust to drive footfall and incremental growth in spend.”
