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If a customer who’s loyal to a brand eventually ditches that brand, how loyal were they in the first place?
It’s a question that can be answered by examining how consumer loyalty has evolved over the past year. It’s a figure that has dropped 11% from 79% in 2022 to 68% in the US this year, according to the SAP Emarys Customer Loyalty Index.
- SAP identified that nearly half consumers surveyed are attracted by “incentivized loyalty,” meaning their loyalty is contingent on prices.
- And incentivized loyally fell a staggering 36% from 76% in 2022.
Although 49% of shoppers expected to find discounts, 59% said they would switch brands if a less expensive option was available, making cost the top priority when it comes to shoppers frequenting their store of choice.
- “It is imperative retailers show customers they ‘get’ them because even when inactive, consumers could return to a brand once they can afford to do so,” SAP’s report read.
The retailers who are retaining shoppers are doing so through top-of-the-line customer service (52%), offering discounts and rewards (49%), and providing options like early access to sales or new products through those rewards (39%).
And although the US saw that 14% drop in customer loyalty, it’s very much a global phenomenon, as the US is still the top country when it comes to retaining customers and having options for brands to earn and maintain those shoppers, per SAP.