UK | Shift in Customer Loyalty Trends
The fifth annual Customer Loyalty Index (CLI) from SAP Emarsys indicates a significant change in consumer loyalty patterns in the UK. The report reveals that traditional brand loyalty, referred to as ‘True Loyalty,’ has stagnated, giving rise to ‘Trend Loyalty.’ This new form of loyalty is characterized by emotional connections and is heavily influenced by viral moments rather than long-term brand trust.
Key findings from the report include:
- 45% of consumers are more likely to trust products that have gone viral.
- 33% of individuals trust social media trends, including TikTok, more than traditional advertising.
- 41% have purchased products endorsed by influencers, nearly double the general average of 21%.
- 64% express loyalty to individual products rather than the brands themselves.
This trend is especially prominent among younger generations, with 43% of Gen Z shoppers admitting to purchasing trending products on social media. Additionally, 20% of this demographic report loyalty to brands based on their trending status, with 25% indicating they would be less loyal if a trending product fails to meet expectations.
SAP Emarsys also introduced the B2B Buyer Loyalty Index (BLI) to analyze loyalty trends among business buyers. Both indices offer insights into the evolving landscape of consumer and business loyalty.
- Why it matters: Businesses may need to adapt their marketing strategies to engage consumers more effectively in a rapidly changing landscape, focusing on trends and social media influence.
- New approaches to loyalty can create opportunities for brands to enhance customer engagement and long-term relationships through real-time personalization.
- The latest: The introduction of the B2B Buyer Loyalty Index provides additional insights into loyalty trends among business audiences.
Source: https://supermarketnews.co.nz/global/gen-zs-obsession-with-viral-products/
Source: https://supermarketnews.co.nz/global/gen-zs-obsession-with-viral-products/