Recent research conducted by SAP Emarsys has unveiled a notable gap between brand loyalty and customer satisfaction in the United Kingdom. The study encompassed responses from over 2,000 consumers and highlighted that while a significant number of individuals remain committed to their preferred brands, a staggering 83% feel undervalued by these very companies.
The findings offer insights into the factors influencing customer loyalty. Notably, 40% of consumers express loyalty towards brands with well-established reputations, while 30% stay loyal to those that display consistent branding. Additionally, 22% of respondents indicated their loyalty to brands considered iconic. Despite these figures, the study revealed that only 17% of consumers feel “truly valued” by their favourite brands. This presents a challenging scenario for businesses, particularly as the cost of acquiring new customers continues to rise, reportedly costing up to five times more than retaining existing ones.
In light of these trends, Meghann York, global head of product marketing at SAP, remarked, “True loyalty is built by delivering meaningful connections and value at every stage of the customer journey.” This underscores the potential role of artificial intelligence (AI) in bridging the gap between brands and consumers. York further noted that "with AI, brands can identify and engage diverse audiences, meeting customers where they are with tailored, real-time experiences across every channel."
The implications of this study suggest that businesses may need to reassess their engagement strategies to foster genuine connections with their customer bases. The emerging technologies in AI automation could play a crucial role in this effort, shaping future practices in customer relationship management and loyalty programmes across various industries. As brands strive to enhance their value offerings, the integration of advanced digital solutions appears to be increasingly pivotal in ensuring long-lasting customer loyalty.
Source: Noah Wire Services