A strong majority (60%) of Londoners feel less loyalty to brands, according to ServiceNow research, despite the fact that 50% are currently spending more than they did a year ago.
Stubborn inflation and an entrenched cost-of-living crisis have led to a brand loyalty crisis within the capital, with spiralling prices cited as the main factor (66%) for consumers’ increased spending.
Personalisation and good customer service have emerged as key factors that customers will take into account when deciding whether to remain loyal to a brand, with 72% of respondents saying that they would be more inclined to stay with brands that they feel understand them as a customer.
Over half (54%) also indicated that they considered a good chatbot service as a vital requirement for brands.
“Britain continues to grapple with higher prices, with London the most expensive area to live. This is leading to a brand loyalty crisis in the capital,” ServiceNow UK and Ireland vice-president and general manager, Jordi Ferrer said.
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“But with operational costs continually rising, cheaper prices aren’t the lasting solution for businesses. Instead, organisations should evaluate things that money can’t necessarily buy.
He added: “Brands can make a difference by offering a great customer experience, helping them stand out at a time when people have less money and living costs are higher. Those that succeed in improving their customer experience now will have a greater chance of building loyalty for the long term.”
Notably, in addition to loyalty, close to two-thirds (63%) of respondents also pointed to a desire for organisations to invest in technology that improves their experience.
Some 55% added that they would be willing to pay more in order to guarantee a seamless service – significantly higher than the national average, which stands at 41%.
