NEWS13 September 2023

Consumers increasingly disloyal to brands, research suggests

Cost of Living FMCG News Trends UK

UK – Almost two-thirds of consumers are abandoning brand loyalty in favour of discounts and offers, according to research from the Data & Marketing Association (DMA) and Tapestry Research.

person shopping in supermarket with a basket

The findings, published in the report Customer Engagement: How to win back customers and (re)build loyalty 2023, suggested that around 63% of consumers often changed their mind about the brands and shops they used in the face of deals and offers from elsewhere.

The DMA said this figure was an all-time high according to its prior data, and added that discounts and promotions were being used by 51% of adults to trial new brands and products, up from 44% in last year’s report.

The report added that 48% would stop buying from a brand if they stopped offering deals, and 81% of consumers stated that they spend time comparing prices before making an important purchase, up from 67% in 2022.

Brand loyalty was lower as well, with 61% of consumers in the research feeling less loyal to brands now than they did a year ago – an increase from 41% in 2022 – and 48% of consumers using cheaper alternatives alongside favourite brands.

Ian Gibbs, director of insight at the DMA, said: “The use of price promotions is a vital tool in helping businesses hit their short-term KPIs. However, their over-use will result in consumers becoming hooked on deals and offers, displaying the higher levels of price sensitivity (or price elasticity) that ultimately eat into profit margins.

“Businesses need a cost-of-living crisis exit strategy whereby they look to reduce the use of price promotions in the marketing mix, and instead refocus on brand and customer service-led reasons to drive loyalty to their brand.”