Has brand loyalty been put on the back burner in pursuit of better value?
By Emma Goodwin
In a world of excess information and near-endless choice at your fingertips, it’s fair to assume that for brands, customer loyalty is more valuable than ever. But in the midst of a cost-of-living crisis and with inflation continuing to rise – and in the wake of a global pandemic – are we foregoing loyalty in favour of other factors?
The discrepancies in brand loyalty across generations are well recognised. PwC’s Customer Loyalty Survey 2022 highlights just how much this differs across age groups - somewhat unexpectedly, Gen Z and Millennials are on average less loyal and more mobile with regards to the brands they engage with, compared to Generation X and Baby Boomers.
That said, it can be hard to distinguish sometimes just what a customer is loyal to. Is it the brand? Or the price? Or just the convenience? Getting good value topped the list of considerations for respondents of PwC’s survey at 53%, something that, as we all become more conscious of our spending, will no doubt remain a deciding buying factor for many.
Another factor playing a role across the buying spectrum is shared values – especially for younger generations. In fact, according to insights from eCommerce marketing platform, Yotpo, 95.8% of UK Gen Z respondents in its recent survey said they were more likely to be loyal to a brand that shared their beliefs, be it on sustainability, wellbeing, or another purpose.
Though much of the conversation centres around ‘smaller’ purchases like dinners out, supermarkets and consumer goods, the brand loyalty question is also applicable to bigger purchases too – like property…one of, if not the largest investment many people make in their lives.
Whilst focused on a rather specific corner of the luxury property market, ‘trust’ and ‘loyalty’ emerged as buzzwords during Savills’ recent launch of its 2022 Branded Residences report. Here, the brand plays an integral role in establishing trust and inspiring confidence in their purchase, as buyers take comfort in their knowledge of the quality, service, and investment proposition.
So, although we might all be set to abandon our typical supermarket brands for a better-value alternative, for developers, a positive brand experience and shared values might just help to instil brand loyalty – even amongst younger generations - for years to come.