69% of UK consumers lack loyalty to CP brands, study finds

New research from SAP Emarsys indicates that a significant majority of UK consumers, precisely 69%, do not feel a sense of loyalty to any consumer product (CP) brand across categories such as food, beverages, and health products.

This study, incorporating responses from over 2,000 UK consumers, sheds light on the issues faced by CP brands. Challenges include gathering and using first-party data effectively to engage and retain customers. The findings also present factors that drive consumer loyalty in this sector.

Amongst those consumers who consider themselves loyal to a particular CP brand, 19% utilise monthly subscription services to make their purchases. Additionally, loyalty programmes have gained traction, with 41% of the surveyed shoppers having joined a new loyalty programme within 2024.

The research further elaborates on the growing difficulties for CP brands arising from supply chain disruptions, market saturation, and the complexities of handling first-party data essential for contemporary consumer targeting. Nevertheless, the report points towards potential benefits derived from AI-powered personalisation strategies, which might aid brands in retaining customers amidst the lure of alternative products based on convenience or pricing.

Sara Richter, Chief Marketing Officer at SAP Emarsys, remarked, "Consumers are shifting their brand loyalties. While cost continues to be important, increasing value is placed on convenience and personalised experiences. The right approach to omnichannel engagement will not only help brands adapt to changing economic conditions, but will also empower them to build meaningful, enduring relationships with their customers."

A case in point is John Frieda, recognised in the haircare sector, which has effectively harnessed SAP Emarsys' Customer Engagement solutions for targeted, data-driven marketing strategies. As a result, the brand experienced a 4.2 times increase in their conversion rate and reached four times their average number of contacts during product launch campaigns.

Lyla Holt, Global Digital Marketing Manager for Consumer Care at John Frieda, noted, "Over 88% of users who purchased an ULTRAfiller+ product purchased 2 or more products within the line. This launch not only had a huge impact on the success of the ULTRAfiller+ but also shaped how we go to market with NPD (New Product Development) in the future."

The research indicates that immediate engagement with consumers through AI-supported omnichannel strategies is imperative. Such approaches are seen as crucial for CP brands to sustain and grow their consumer base in a market where it costs substantially more to acquire new customers compared to retaining existing ones.