Cost of living driving growing brand disloyalty, says DMA

The research report, called How to win trust and loyalty and which is based on a poll of 2,000 people, examined where consumers are cutting back and the motivations behind their actions.

Findings included that 39% of consumers who spend on eating out are cutting back on this versus 18% who have stopped spending on this completely.

In addition, 21% of consumers who drink out of home have stopped spending on this already, and 21% of consumers who spend on fitness or sport have stopped expenditure on these activities.

However, consumer spending on holidays and media subscriptions seemed to be better protected, as 38% and 42% of respondents said they were not expecting to change their current spending patterns.

The DMA said that 51% of consumers agreed that they often change their mind about what brands or shops to use because of deals or offers available, in comparison with 49% of consumers in 2020.

Feelings of disloyalty have also increased among consumers over the past two years, according to the DMA, with 41% of consumers claiming that they feel less loyal to brands and companies than they did a year ago, in comparison with 34% in 2020.

Tim Bond, director of insight at the DMA, said: “The UK’s cost-of-living crisis provides a significant backdrop to any recent changes observed in consumer attitudes to loyalty.

“Change doesn’t have to be a bad thing if brands are responsive and actively seeking opportunities for how they can best serve their customers.

“While we have seen an impact on discretionary spending and shopping habits, this hasn’t stopped all consumers from feeling loyalty – just the most effective ways for brand to earn and retain it.”