Banks enjoying loyalty success
UK consumers are more likely to remain loyal to banks than most other types of brand and service providers, data today reveals.
The insight from digital gifting platform Prezzee, shows that 41% of consumers say they are loyal to their favourite supermarket and will remain so.
This is considerably higher than food brands (32%), fashion retailers (32%), restaurants (31%), telecoms providers (25%) and pubs (21%).
Only supermarkets (56%) are outperforming banks, whereas technology retailers (16%), hotels (16%) and automotive companies (15%) bring up the rear.
Despite banking and the financial services industry faring well in the survey, the research found insurance has the biggest loyalty problem, with a third (30%) of consumers switching providers every year. This is primarily a financial decision, with two thirds (68%) looking to save money. Those looking for insurance can be easily swayed with 30% enticed by a reward or offer.
Attitudes to loyalty vary significantly between the youngest and oldest demographics, particularly in relation to banks and supermarkets. Just a third (30%) of Gen Z (16-24) are loyal to a bank, compared to half (50%) of those over 55. Similarly Gen Z are less loyal to where they buy food with just under half (48%) sticking to one supermarket compared to two thirds (65%) of over 55s.
Poor customer service and quality of products are the two main issues that will test a consumer’s loyalty, with 56% and 54% of respondents citing those factors respectively.
James Malia, European president and head of growth at Prezzee commented: “Loyalty is hard to find, but for those that get it right, the rewards are significant. Our data clearly highlights that, in the UK at least, it’s supermarkets that are leading the way. Thankfully there are plenty of options for brands to build loyalty and learn from the approaches supermarkets are taking and apply them to their own prospective customer base.
“Consumers appreciate deals, but they’re less responsive to traditional discounts in loyalty programmes. Instead, they favour points-based systems that translate into tangible rewards, providing a sense of immediate gratification, as well as a reason to return.
“This subtle psychological difference suggests that offering a genuine ‘thank you’ in the form of something to spend resonates more deeply than a standard discount and those looking to build loyalty should consider the different options available.”