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13 September 2022
The new UK consumer: less loyal and more deal conscious
Brand loyaltyPurchase behaviourUnited Kingdom
In the current cost of living crisis consumers are more likely to have cut back their spending than to have stopped spending completely – and this is putting pressure on existing brand loyalties.
That’s according to How to Win Trust and Loyalty, the latest report in the Customer Engagement series from the Data & Marketing Association (DMA), which indicates the crisis is challenging consumers in ways that are changing their spending habits.
Why it matters
Cutting back is an obvious response by consumers to the cost of living crisis, but it is useful for brands to understand where, how much, and why.
39% of consumers who spend on eating out are cutting back on this versus 18% who have stopped spending on this completely.
21% of consumers who drink out of home have stopped spending on this already.
21% of consumers who spend on fitness or sport have stopped spending on this.
38% do not expect to change spending on holidays; 42% do not expect to change spending on media subscriptions.
51% of consumers now agree that they often change their mind about what brands or shops to use as a result of deals or offers, in comparison to 49% of consumers in 2020.
41% of consumers claim that they feel less loyal to brands and companies than they did a year ago, in comparison to 34% stating this in 2020.
“Consumers still want to be loyal to the brands they love and they also want to retain the habits they have built up. However, that may not always be possible in these unprecedented times, so offers and cheap prices are becoming increasingly attractive. For brands, that creates a challenge, to stick or to twist, to keep doing what built up loyal customers or to chase possible switchers with offers” – Scott Logie, Chair of the DMA Customer Engagement Committee, MD at REaD Group Insight.