Research from Cheetah Digital offers reassurance but warns of cost of getting it wrong
Consumers in the UK are among the most loyal in the world, but there are big risks if you get your loyalty proposition wrong, warns Cheetah Digital’s latest report.
This just published research on the state of Loyalty in the UK shows the reassuring statistic that consumers are getting more loyal. Loyalty program use is on the up, with 41% of U.K. consumers more likely to engage in brand loyalty programs this year than last, an 8% increase on 2021.
The report states: “Comprehensive loyalty programs that go beyond points for-prizes are the key to turning occasional purchasers into retained customers, with almost half of U.K. consumers (45%) stating they are more likely to be loyal to a brand if it had a better loyalty program.
Loyalty program use is on the up, with 41% of UK consumers more likely to engage in brand loyalty programs this year than last” It adds: “The modern consumer still values a discount for their loyalty, but there have been huge increases in UK consumers valuing all of the things that make your brand unique, and, in turn, makes them feel special – engaging interactive experiences, exclusive access to products, personalised recommendations, brand recognition, and to feel part of the brand’s community. increase since 2021 of UK. This is a 50% increase since 2021 and 7% than consumers from the comparison ‘rest of the world” figures.
Brand loyalty is on the rise too. UK consumers are participating in loyalty programs, even if they are not offering one. Only 5% are less likely to participate in a loyalty program than last year — a staggering 55% decrease since 2021. Cheetah’s report comments: “Your customers aren’t just ready for a loyalty offering, they expect it. One that truly rewards them as an individual and goes beyond a freebie every tenth purchase or a raft of points that will never be redeemed. Most consumers tend to already be members of existing loyalty programs (95%) and there’s been an 8% year-on-year increase on those that are willing to increase their participation.”
The cost of getting loyalty wrong
Emotional and genuine loyalty is an outcome — a goal you can only achieve by truly knowing your customers and carefully nurturing every relationship you have — every action, input, and communication a customer receives from should make them feel valued and respected. However, all-too-many brands still invest far more resources in customer acquisition strategies, rather than customer retention. Rather than accrue new customers in the immediacy, there should be a focus on maintaining relationships with one’s current customer base.
Over a quarter (27%) of U.K. consumers have switched away from a brand they previously liked to buy from, with many citing a competitor having better promotions (21%), or buying options (26%), because they didn’t feel valued as a customer (30%), or because of its stance on social, political, or environmental issues (20%)