New research from SAP Emarsys has shown a significant disconnect between brand loyalty and customer satisfaction in the UK.
Despite many consumers remaining loyal to their preferred brands, some 83% feel undervalued by these same companies.
The study, which spoke to more than 2,000 UK consumers, revealed several factors driving customer loyalty. Some 40% of consumers stay loyal to brands with long-standing reputations, 30% remain loyal to brands that maintain consistent branding and 22% are loyal to iconic brands.
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However, one key finding is that just 17% of consumers feel “truly valued” by their favourite brands. Yet, customer acquisition costs continue to rise. Research shows that acquiring a new customer can cost up to five times more than retaining an existing one.
“True loyalty is built by delivering meaningful connections and value at every stage of the customer journey,” said Meghann York, global head of product marketing at SAP, “With AI, brands can identify and engage diverse audiences, meeting customers where they are with tailored, real-time experiences across every channel.”
