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Supermarkets top the charts for brand loyalty 

Supermarkets top the charts for brand loyalty 

Three quarters of Brits (74%) are loyal to supermarkets thanks to loyalty schemes, competitive pricing and quality products, according to new research from Ello.

The survey of over 2,000 UK consumers explores what makes Brit’s tick when it comes to retail and what makes them to stick, or shop around.

With so many consumers being loyal to their supermarket, it’s no surprise that they come top of the class for loyalty compared to other sectors, including fashion retail.

The research uncovers the differences in the retail sector, revealing that a staggering two fifths (41%) of Brits admit they’re not loyal to fashion retailers, with just one in 10 (11%) believing it pays to be loyal. 

When it comes to ranking customer loyalty across various sectors, the data reveals only the insurance sector has worse customer retention than fashion retail, with banks, energy/utility suppliers and mobile providers all ranking higher.

On the sectors it pays to be loyal to, this is how various industries rank according to consumers:

  1. Retail (supermarket)
  2. Mobile provider
  3. Food service and restaurants
  4. Finance (banking)
  5. Hotels and hospitality
  6. Travel (airlines, trains)
  7. Utilities (gas and electricity supply)
  8. Insurance (home, car, life/health)
  9. Telecoms (landline, at home broadband)
  10. Media (streaming services – TV, music, entertainment etc.)
  11. Retail (fashion)
  12. Leisure (gyms, cinemas)

When asked what makes Brits cut ties with a brand, almost two thirds (60%) admit bad interactions impact their loyalty to a brand, while one-in-five would leave a brand if they engaged in unethical practices,

“With new retailers popping up on a daily basis, whether that be boutique fashion brands or recipe boxes, the retail landscape is continuously changing and becoming increasingly competitive.

“This is leading to brands having to rethink their brand proposition to ensure they’re still appealing to their customers, meeting their needs and enhancing their lives in a meaningful way. Without evolving, retailers are at risk of losing their customers,” comments Michael Kalli, Managing Director at Ello.

Ranked in order of importance, the factors likely to result in increased loyalty to supermarkets are:

  1. Price (50%)
  2. Quality of product/service (35%)
  3. Discounts/deals (28%)
  4. Good customer service (25%)
  5. Loyalty schemes (25%)

Ranked in order of importance, the factors likely to result in increased loyalty to fashion retailers are: 

  1. Price (41%)
  2. Quality of product/service (34%)
  3. Discounts/ deals (21%)
  4. Good customer service (19%)
  5. Reliability (11%)

What’s more, the research reveals that, over a 12-month period, the average consumer spends 38% less with fashion retailers when compared to supermarkets. 

“As retailers continue to see spending increase following the pandemic, businesses need to consider the financial strain which consumers are facing. Now more than ever before, shoppers have more options when it comes to where to spend their money thanks to the rise of online shopping. This allows shoppers to be savvier about where they spend and what they spend on,” adds Michael

Ranked in order of importance, the factors likely to result in increased spend with supermarkets:

  1. Reliable/good quality product/service (27%)
  2. A loyalty scheme (26%)
  3. Good customer service (22%)
  4. Receiving regular offers relevant to them (18%)
  5. Ethical business practices (incl. paying employees fairly, supporting employee wellbeing) (12%)

Ranked in order of importance, the factors likely to result in increased spend with fashion retailers:

  1. Reliable/good quality product/service (21%)
  2. Good customer service (17%)
  3. Receiving regular offers relevant to them (15%)
  4. A loyalty scheme (15%)
  5. Ethical business practices (incl. paying employees fairly, supporting employee wellbeing) (14%)

“It’s clear that there are some big differences when it comes to customer loyalty in the retail sector. There’s a real opportunity here for fashion retailers to learn from supermarkets on the customer retention front.

“From offering quality products and loyalty schemes, to aligning with the values of customers, there are a lot of factors which play a pivotal role in swaying a customer’s decision on where to shop and whether or not to stay loyal. The perfect retention strategy will cover all bases and ensure the right balance of price, perks, quality and customer service,” concluded Michael

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