UK consumers prioritise affordability over brand loyalty: Report

The report highlights significant changes in consumer behaviour within the retail sector. However, brand loyalty remains important, with 59 per cent of UK adults stating they have remained loyal to certain brands for ‘as long as they can remember.’ Furthermore, 69 per cent of respondents noted that trust in a brand is a key factor when making purchasing decisions.

The mention of customer loyalty increased between 2019 and 2021 in the UK, peaking at 5,305 mentions. The COVID-19 pandemic and subsequent lockdowns heightened the importance of customer loyalty. However, the rising inflation in 2022 led consumers to cut back on spending and become more selective with their purchases. Consequently, retailers placed greater emphasis on customer loyalty to prevent shoppers from switching to discount stores, resulting in high mentions. This focus, however, waned in 2022 and again in 2023, as many loyalty initiatives had already been implemented, as per the State of Loyalty report.

The Cardlytics report also indicates that loyalty programmes significantly influence consumer behaviour. Three in five respondents (61 per cent) said they are more likely to visit a store if it offers a loyalty or rewards system. This figure increases to 70 per cent among the 18-34 age group, showing that younger consumers are particularly attracted to such incentives.

Fibre2Fashion News Desk (DP)