Customer Engagement 2023: How to Win Back Customers and Rebuild Loyalty

New research from the DMA and Tapestry Research shows a significant rise in consumers influenced by price, with a huge surge in the past year.

Discounts and promotions are an increasingly important driver of consumer demand in a challenging economic climate, with 51% of UK adults using them to trial new brands and products (up from 44%).

However, the downside of more consumers becoming hooked on discounts and offers is a considerable decline in brand loyalty.

Ian Gibbs, Director of Insight at the DMA, said: “Businesses need a cost-of-living crisis exit strategy to reduce the use of price promotions in the marketing mix, and instead refocus on brand and customer service-led reasons to drive loyalty to their brand.”

Most consumers feel less loyal

Loyalty is on the decline – with 61% of consumers feeling less loyal to brands now than they did a year ago (an increase from 41% in 2022). 48% of consumers are even diversifying their brand repertoires by using cheaper alternatives alongside their favourite brands.

The ficklest consumer behaviour is in the ‘essential’ categories (e.g., groceries, household goods) where loyalty has dipped the most.

Ready to find out what marketers can do to win back customers and rebuild loyalty?

Read the full report