New research reveals UK consumers are nearly 50% more loyal to stores than the brands they buy, with in-store experiences and meaningful rewards driving long-term customer commitment.
The findings come from new research from digital gifting platform, Prezzee, which surveyed 5,000 consumers in the UK to establish what drives loyalty to brands and retailers.
The study found that almost half of consumers (47%) are loyal to the retailers they shop with, compared to just a third that consistently purchase the same brands (33%). The trend is most pronounced among older consumers, with 50% of over-55s expressing store loyalty versus only 22% being brand loyal. In contrast, millennials (aged 25-34) reverse the trend, being the only age group more loyal to brands than stores (47% vs 42%).
When considering what impacts loyalty, customer service is key. Over half (54%) of consumers say poor service erodes their trust, followed by a drop in product or service quality (46%), increased prices (38%) and negative publicity (24%).
Meanwhile, only a small fraction (6%) of consumers report feeling a stronger sense of loyalty towards specific brands when making purchases online, potentially due to the vast array of choices. Factors beyond brand affiliation, like convenience, are most pertinent and free delivery (36%) is preferable to fast (27%).
In contrast, the traditional bricks & mortar experience fosters stronger brand allegiance for a considerable segment of the population. Nearly a third (32%) of British shoppers indicate that they are more loyal to brands when they shop in physical stores. Direct interaction with products, personalised customer service, and the overall sensory engagement contribute to a stronger brand connection.
The study suggests brands and stores should also show loyalty to their customers. The top three schemes to incentivise loyalty were: reward points, offers with direct monetary value, for instance ‘£5 off when you spend £15’, and a flat discount voucher such as ‘£10 off’. Other effective methods of gaining loyalty included repeat purchase cards, free gifts and partner rewards.
James Malia, European president and head of growth at Prezzee, commented: “Loyalty cannot be a one-way street. If a consumer is going to stay with the same store or brand, they need to be rewarded and incentivised to do so. Convenience can take you so far, but these findings underscore the complex and evolving nature of consumer loyalty in the contemporary retail landscape.
“The message is clear: brands and retailers must balance competitive pricing with in-store experience and tailored rewards that go beyond a one-size-fits-all approach. Those who offer compelling reasons for customers to return – especially through store experiences – will be best positioned to foster lasting loyalty.”
