Marketing News
How marketers can drive brand loyalty in 2023
Customer loyalty in the UK has increased with almost three quarters (73%) of British customers consider themselves ‘loyal’ to retailers or brands.
That’s according to new research published by Emarys in its annual Customer Loyalty Index, which reveals what loyalty looks like where customers are increasingly connected and ‘always-on’.
Having surveyed more than 2000 customers the findings show that loyalty is now more than ever tied more directly to price, with the research suggesting how marketers can drive loyalty in the year ahead.
Personalisation is also a key theme that influences buyer behaviour with 71% of those surveyed explaining that they are more loyal to retailers when they are offered discounts, incentives and rewards.
However, the underlying importance of customer experience should not be ignored, as ‘great customer service’ and the way that brands market themselves to customers in a ‘more personalised way’ is also influential.
In fact, more than a third (34%) have recently switched from a brand that they were previously loyal to after a poor customer experience.
More than half (57%) said some of the top reasons for losing their custom included, ‘inferior shopping experiences’, ‘halting free returns’ and ‘not offering discounts or incentives’ in return for their loyalty.
Generational views also influence buyers, as does UK manufacturing, with more than half of customers more likely to buy from a UK brand.
Others were also drawn to a strong brand presence that had clear ethical and moral practices, as well as a sustainability offering, where there is affinity that aligns with their own values.
In a separate study by Yotpo, UK customers are adamant about sharing the same beliefs with the companies they love, with 86% of those surveyed saying that they are more likely to be loyal to a brand that shares their values.
Provenance is equally as important, as well as the city people call home, as consumers are proud and keen to buy from their hometowns.
The top industries where customers demonstrate the most loyalty include clothing & fashion (55%), food (51%), beauty & skincare (29%) and technology (22%).
Five key types of customer loyalty in 2023
- Incentivised loyalty developed through discounts, incentives and rewards will be paramount in the year ahead
- Inherited loyalty through brand association will also influence buyer behaviour
- Customer advocacy through ‘silent loyalty’ isn’t something that should be ignored and will need nurturing
- Strong ethical connections and shared values will also help to encourage repeat business
- Unshakeable loyalty built through strong brand awareness will also help with marketing and conversions in the year ahead
If you are a small business or a local charity that relies heavily on marketing leads and regional sales, then the findings of the study are likely to ring true and give an invaluable insight on how to retain and gain that all important customer loyalty.
Reading / Sources
Customer Loyalty Index 2022: A Review of UK Consumer Attributes Impacting Loyalty to Retailers, Brands, and Stores emarsys
Loyalty Programs, Brand Values, & Data Transparency in the UK Yotpo
State of Marketing Trends Report 2022 HubSpot
