Consumers are changing their spending habits as a direct result of the cost of living crisis, according to a Data & Marketing Association (DMA) report.
The ‘How to Win Trust and Loyalty’ study points to feelings of disloyalty increasing with customers reportedly seeking more deals and offers from alternative brands.
Some 41% of consumers claim to feel less loyal to brands and companies compared to a year ago.
A further 51% of the consumers surveyed agreed that they often change their mind about what brands or shops to use as a result of deals or offers, in comparison to 49% of consumers in 2020.
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“The UK’s cost of living crisis provides a significant backdrop to any recent changes observed in consumer attitudes to loyalty,” DMA director of insight Tim Bond said.
“But change doesn’t have to be a bad thing if brands are responsive and actively seeking opportunities for how they can best serve their customers. While we have seen an impact on discretionary spending and shopping habits, this hasn’t stopped all consumers from feeling loyalty – just the most effective ways for brand to earn and retain it.”
DMA Customer Engagement Committee chair, Scott Logie, added: “In these unprecedented times offers and cheap prices are becoming increasingly attractive. For brands, that creates a challenge, to stick or to twist, to keep doing what built up loyal customers or to chase possible switchers with offers.”
