Customer loyalty: it’s something we, as marketers, speak about often. But what do consumers think about loyalty? How do they choose which brands are worthy of their loyalty? And what do they want marketers to know when it comes to earning their loyalty?
In August 2022, Emarsys sought to answer these questions and more, so we asked 2,012 general consumers in Germany all about loyalty. We wanted to find out how, from a consumer’s perspective, marketers can drive loyalty in 2023 and beyond — and they delivered.
Our Customer Loyalty Index 2022 contains the results of these inquiries, and it tells us a lot about what loyalty looks like in today’s world of digital-first retail, always-on commerce, and increasingly in-control consumers. It also reveals how the past few turbulent years have impacted which brands consumers are loyal to, and how they demonstrate their loyalty.
Loyalty Is Shifting for German Customers
Last year, we conducted our first Customer Loyalty Index and identified five key types of customer loyalty (i.e., the different ways customers are loyal):
But following a year of pandemic recovery that led to global inflation and increased cost of living around the world, the way customers express their loyalty is shifting.
Germany: Loyalty In 2022
In Germany, overall loyalty has increased. 46% of German respondents agreed with the statement “I am more loyal to retailers that offer me discounts, incentives, and rewards” — a 5% increase from 41% in 2021.
The research shows that German customers still value personalized experiences from brands, regardless of economic turbulence, and business leaders should continue investing in CX strategies to better position themselves for success post-recession. Here are a few stats that show just how vital exceptional CX and personalization are to customers:
- 64% of consumers are more loyal to retailers that offer them discounts, incentives, and rewards, provide great customer service, and market to them in a personalized way that accounts for their unique needs.
- 37% of respondents have switched from a brand they were loyal to due to a bad experience, underlining the importance of delivering exceptional CX.
- Over half (55%) of respondents ranked “making the shopping experience difficult,” “halting free returns,” “treating existing customers poorly,” and “not offering discounts for customer loyalty” as reasons a brand would lose their loyalty.
In addition to this overall trend, this year’s report also reveals how individual attributes – income, age, geography, and ethical values – can affect customer loyalty differently.
The Impact of Inflation
Inflation is another factor that impacts customer loyalty in Germany, particularly for those who are younger and/or earning less money.
“Inflation and/or the cost-of-living crisis has made me leave brands I have previously been loyal to in order to save money.”*
| Age 25-34 | Age 55+ | |
|---|---|---|
| “Agree” | 70% | 45% |
“Inflation and/or the cost-of-living crisis has made me leave brands I have previously been loyal to in order to save money.”*
| Income < €9,000 | Income €64,000 to €73,000 | |
|---|---|---|
| “Agree” | 61% | 55% |
*Statistics from Emarsys (an SAP Company) Customer Loyalty Index 2022, a study of 2,012 consumers in Germany.
Older Age Groups Are More Price-Increase Sensitive
Older age groups tend to be set in their ways when it comes to set prices, and they are more likely to cease purchasing in response to an increase in pricing, compared to younger generations.
“If my favorite brands increased their prices by 25%, I would stop buying from them.”
| Industry Sector | Age 25-34 | Age 35-44 | Age 45-54 | Age 55+ |
|---|---|---|---|---|
| Airlines | 32% | 37% | 41% | 46% |
| Alcoholic drinks | 35% | 36% | 45% | 48% |
| Automobiles | 34% | 38% | 41% | 48% |
| Beauty and skincare | 35% | 38% | 42% | 49% |
| Clothing and fashion | 37% | 40% | 42% | 52% |
| Energy | 32% | 34% | 41% | 43% |
| Food | 27% | 33% | 40% | 45% |
| Food delivery | 35% | 38% | 46% | 53% |
| Furniture / homeware | 35% | 40% | 44% | 52% |
| Medicine / pharmaceuticals | 31% | 36% | 41% | 48% |
Statistics from Emarsys (an SAP Company) Customer Loyalty Index 2022, a study of 2,012 consumers in Germany.
Income Impacts Ethical Loyalty
Although “price” is a higher determinant of customer loyalty (46%) than “alignment with values” (19%), the research suggests that income levels will influence whether a customer is loyal to a brand based on its morals or values.
“Thinking about your loyalty to certain brands, which of the following statements do you agree with?“
| Statement | Household income < €9,000 | Household income €64,000 to €73,000 |
|---|---|---|
| “I am more loyal to retailers that have strong moral or ethical values.” | 17% | 29% |
| “I have switched from a brand I was loyal to following a controversy with a key stakeholder (e.g., a CEO or founder).” | 16% | 36% |
| “I have switched from a brand I was loyal to because of their sustainability practices.“ | 22% | 42% |
| “I am more loyal to retailers that prioritize sustainable business practices.“ | 17% | 25% |
Statistics from Emarsys (an SAP Company) Customer Loyalty Index 2022, a study of 2,012 consumers in Germany.
Generational Views Impact Decision Making
The age group that people fall into largely influences overall sentiment across various decision-making drivers.
“To what extent are you more or less likely to be loyal to a brand if their products are made in China?“*
| Response | Age 25-34 | Age 35-44 | Age 45-54 | Age 55+ |
|---|---|---|---|---|
| “More Likely” | 21% | 19% | 12% | 8% |
“I have switched from a brand I was loyal to because of their sustainability practices.”*
| Response | Age 25-34 | Age 35-44 | Age 45-54 | Age 55+ |
|---|---|---|---|---|
| “Agree” | 35% | 31% | 23% | 21% |
“I am more loyal to retailers that have strong moral or ethical values.”*
| Response | Age 25-34 | Age 35-44 | Age 45-54 | Age 55+ |
|---|---|---|---|---|
| “Agree” | 21% | 19% | 15% | 13% |
*Statistics from Emarsys (an SAP Company) Customer Loyalty Index 2022, a study of 2,012 consumers in Germany.
Not All Industries Are Created Equal When It Comes to Loyalty
Survey respondents were asked to identify which industries the retailers they are most loyal to are in. Here’s what the research revealed:
The generational loyalty divide also plays out by industry – especially when it comes to clothing and fashion, food, beauty and skincare, and food delivery.
“In which industries are the retailers to which you are most loyal?“
| Industry | Age 25-34 | Age 55+ |
|---|---|---|
| Clothing and fashion | 49% | 38% |
| Food | 66% | 78% |
| Beauty and skincare | 36% | 18% |
| Food delivery | 14% | 7% |
Statistics from Emarsys (an SAP Company) Customer Loyalty Index 2022, a study of 2,012 consumers in Germany.
Broad agreement on “made in Germany” products, differing opinions on “made someplace else.”
In Germany, “Made in Germany” still means something, and loyalty has a direct tie to this, with 64% of German respondents saying they are more likely to be loyal to German-made brands. Generational divides widened, however, when looking at other countries.
The City You Call Home Impacts Decision Making
The city people call home also determines where they stand on brand loyalty as it relates to product origin.
“To what extent are you more or less likely to be loyal to a brand if their products are made in Germany?“*
| HOME CITY | Düsseldorf | Frankfurt | Köln |
|---|---|---|---|
| “More Likely” | 68% | 67% | 66% |
“To what extent are you more or less likely to be loyal to a brand if their products are made in France?“*
| HOME CITY | Berlin | Frankfurt | Düsseldorf |
|---|---|---|---|
| “More Likely” | 68% | 67% | 66% |
“To what extent are you more or less likely to be loyal to a brand if their products are made in the UK?“*
| HOME CITY | Berlin | Dortmund | Essen |
|---|---|---|---|
| “More Likely” | 25% | 29% | 44% |
“To what extent are you more or less likely to be loyal to a brand if their products are made in Australia?“*
| HOME CITY | Berlin | Essen | Düsseldorf |
|---|---|---|---|
| “More Likely” | 31% | 41% | 42% |
“To what extent are you more or less likely to be loyal to a brand if their products are made in the US?“*
| HOME CITY | Berlin | München | Köln |
|---|---|---|---|
| “More Likely” | 35% | 38% | 44% |
*Statistics from Emarsys (an SAP Company) Customer Loyalty Index 2022, a study of 2,012 consumers in Germany.
Loyalty In Different Countries
Click below to find out what loyalty looks like for consumers in different countries, including breakdowns for global, American, British, French, and Australian respondents.
- Loyalty Globally
- Loyalty in the US
- Loyalty in the UK
- Loyalty in France
- Loyalty in Australia
The Omnichannel Difference
As we continue to dive deep into customer loyalty research, one thing is clear: To drive customer loyalty, it’s not enough for brands to be customer centric — they must be customer obsessed.
In May 2022, Emarsys commissioned Forrester Consulting to research which companies were using omnichannel strategies to effectively deepen customer relationships to drive business growth. The results and insights are revealed in The Omnichannel Difference: How the Most Customer Focused Companies Deliver The Value of Omnichannel, where you will learn all about customer-obsessed companies, and how to put the customer at the center of your business.
Statistics from Emarsys (an SAP Company) Customer Loyalty Index 2022, a study of 2,012 consumers in Germany.
The Emarsys Customer Loyalty Index in its second year, is based on a survey of 2,012 nationally representative respondents in Germany between August 26th and August 31st, 2022. The survey was conducted by Opinion Matters, which abides by and employs members of the Market Research Society, based on the ESOMAR principles.
