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 2,000 general consumers in the UK 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 By Type

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):

Ema Customer Loyalty Key Types Cli22 Blog Global En British

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.

The UK: Loyalty In 2022

In the UK, overall loyalty has increased. 73% of UK consumers consider themselves “loyal” to certain retailers, brands, and stores — just 55% said the same in 2021.

The research shows that UK 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 personalisation are to customers:

  • 71% of consumers are more loyal to retailers that offer them discounts, incentives, and rewards, provide great customer service, and market to them in a personalised way that accounts for their unique needs. 

  • Just over a third (34%) of respondents have switched from a brand they were loyal to due to a bad experience, underlining the importance of delivering exceptional CX.

  • 57% of resondents 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

In an era of high inflation and economic uncertainty, overall customer loyalty is now tied more directly to price than it was a year ago. Over half (56%) of respondents said that inflation has made them leave brands to which they’ve previously been loyal to, in an effort to save money. Clearly, inflation is impacting customer loyalty in the UK, 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 16-24Age 25-34Age 35-44Age 45-54Age 55+
“Agree”72%70%64%59%40%

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 £8,000 – £15,999Income £24,000 – £31,999Income £72,000 – £72,999
“Agree”61%56%56%

*Statistics from Emarsys (an SAP Company) Customer Loyalty Index 2022, a study of 2,000 consumers in the UK.

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 SectorAge 25-34Age 35-44Age 45-54Age 55+
Airlines40%45%51%56%
Alcoholic drinks42%47%51%56%
Automobiles42%47%53%58%
Beauty and skincare40%47%50%59%
Clothing and fashion40%47%50%58%
Energy37%42%48%48%
Food36%41%46%51%
Food delivery45%52%56%64%
Furniture / homeware44%46%54%60%
Medicine / pharmaceuticals 38%41%48%54%

Statistics from Emarsys (an SAP Company) Customer Loyalty Index 2022, a study of 2,000 consumers in the UK.

Income Impacts Ethical Loyalty

Although “price” is generally a higher determinant of customer loyalty (56%) than “alignment with values” (4%), the research suggests that income levels will influence whether or not a customer is loyal to a brand based on its morals or values.

StatementIncome £8,000 – £15,999Income £24,000 to £31,999Income £72,000 to £79,999
“I am more loyal to retailers that have strong moral or ethical values.”24%24%22%
“I have switched from a brand I was loyal to following a controversy with a key stakeholder (e.g., a CEO or Founder).”15%20%29%
“I have switched from a brand I was loyal to because of their sustainability practices.”21%21%32%
“I am more loyal to retailers that prioritize sustainable business practices.”15%18%18%

Statistics from Emarsys (an SAP Company) Customer Loyalty Index 2022, a study of 2,000 consumers in the UK.

Generational Views Impact Decision Making

The age group that people fall into largely influences overall sentiment across various decision-making drivers.

Thinking about your loyalty to certain brands, which of the following statements do you agree with?

StatementAge 16-24Age 25-34Age 35-44Age 45-54Age 55+
“I am more loyal to retailers that have strong moral or ethical values.”31%26%25%23%18%
“I have switched from a brand I was loyal to following a controversy with a key stakeholder (e.g., a CEO or Founder).”36%32%32%23%9%
“I have switched from a brand I was loyal to because of their sustainability practices.42%34%31%29%12%
“I am more loyal to retailers that prioritize sustainable business practices.”30%19%15%18%15%

Statistics from Emarsys (an SAP Company) Customer Loyalty Index 2022, a study of 2,000 consumers in the UK.

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:

Ema Top 7 Industry Uk Cli22 Blog Regional Uk En

The generational loyalty divide also plays out by industry – especially when it comes to clothing and fashion, food, beauty and skincare, and food delivery. For example, younger generations show the most loyalty to clothing and fashion retailers, while older generations are more inclined to be loyal to brands in the food industry.

In which industries do the retailers you are most loyal to exist?

IndustryAge 25-34Age 55+
Clothing and fashion56%51%
Food47%54%
Beauty and skincare36%22%
Food delivery19%12%

Statistics from the Emarsys, an SAP Company, Customer Loyalty Index 2022, a study of 2,000 consumers in the UK.

Broad agreement on “made in the UK” products, differing opinions on “made someplace else.” 

In the UK, “made in the UK” still means something, and loyalty has a direct tie to this, with 57% of UK respondents saying they are more likely to be loyal to UK-made brands. Generational divides widened, however, when looking at other countries of origin.

Ema Made In Uk Age Cli22 Blog Regional Uk En

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 the UK?“*

HOME CITYLondonManchesterBrightonBelfastEdinburghCardiff
“More Likely”56%60%56%55%46%58%

To what extent are you more or less likely to be loyal to a brand if their products are made in the US?“*

HOME CITYLondonManchesterBrightonBelfastEdinburghCardiff
“More Likely”29%25%19%27%20%25%

To what extent are you more or less likely to be loyal to a brand if their products are made in Germany?*

HOME CITYLondonManchesterBrightonBelfastEdinburghCardiff
“More Likely”26%19%10%25%12%22%

To what extent are you more or less likely to be loyal to a brand if their products are made in France?“*

HOME CITYLondonManchesterBrightonBelfastEdinburghCardiff
“More Likely”22%17%15%25%9%25%

To what extent are you more or less likely to be loyal to a brand if their products are made in Australia?“*

HOME CITYLondonManchesterBrightonBelfastEdinburghCardiff
“More Likely”32%31%21%29%22%35%

To what extent are you more or less likely to be loyal to a brand if their products are made in Ukraine?“*

HOME CITYLondonManchesterBrightonBelfastEdinburghCardiff
“More Likely”30%33%23%39%25%42%

To what extent are you more or less likely to be loyal to a brand if their products are made in Russia?“*

HOME CITYLondonManchesterBrightonBelfastEdinburghCardiff
“More Likely”12%8%8%9%8%10%

To what extent are you more or less likely to be loyal to a brand if their products are made in China?“*

HOME CITYLondonManchesterBrightonBelfastEdinburghCardiff
“More Likely”14%13%6%11%3%18%

*Statistics from Emarsys (an SAP Company) Customer Loyalty Index 2022, a study of 2,000 consumers in the UK.

Loyalty In Different Countries

Click below to find out what loyalty looks like for consumers in different countries, including breakdowns for global, American, Australian, French, and German respondents.

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 centre of your business.

Statistics from Emarsys (an SAP Company) Customer Loyalty Index 2022, a study of 2,000 consumers in the UK.

The Emarsys Customer Loyalty Index, in its second year, is based on a survey of 2,000 nationally representative respondents in the UK 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.