Branding

Almost half of consumers are not currently loyal to brands

Almost half of consumers are not currently loyal to brands
Duncan is an award-winning editor with more than 20 years experience in journalism. Having launched his tech journalism career as editor of Arabian Computer News in Dubai, he has since edited an array of tech and digital marketing publications, including Computer Business Review, TechWeekEurope, Figaro Digital, Digit and Marketing Gazette.


New research from Ello Group, a loyalty and engagement specialist, has revealed that almost one in five consumers would trust retailers more if when making a purchase, they were offered discounts that could help to offset the cost-of-living struggles.

Consumer trust is at a concerning level, as only 8% trust the retailers they shop with currently; while more than two in five (41%) say they are not currently loyal to brands. Close to one in six (14%) have also reduced their spend in industries, such as fashion, in the last six months due to rising prices.

The research, which surveyed 1,000 UK consumers, also revealed that discounts and deals now feature in the top three most important factors for consumers when deciding whether to shop with a retailer in the long term, preceded only by price and quality. With more than one in ten (11%) responding that they would remain loyal if retailers could help them make cost savings in other areas, for example eating out, food and drink or travel and leisure.

Michael Kalli, MD of Ello Group, said: “In the current cost-conscious climate we are in, consumers are being forced to look at where they’re spending their disposable income and either scale back or look for opportunities to gain additional value with their purchases. As a result, we are now seeing a rise in the use of marketing tools such as a gift with purchase (GWP) in order to offer consumers additional discounts, deals and freebies for broader categories. These offers can really help to build brand trust, as a signal that a brand is looking for ways to provide cost savings in areas such as travel, or eating out.”

LookFantastic, Europe’s leading online beauty retailer owned by The Hut Group, recently responded to growing demand for cost savings across food and drink-led offers by incorporating Ello Group’s tastecard product as a gift with purchase. Despite offering a GWP for a number of years, the need to diversify the gift options grew over time in line with the preferences of its significant customer base. Now, with the incorporation of tastecard, the beauty retailer offers consumers a gift that facilitates 1,000s of discounts on food and drink across the UK.

On the collaboration, Jamie Mounsey of The Hut Group’s commercial division, said: “Introducing tastecard to our portfolio of gifts was an easy decision because of the breadth of its offering and the strength of its discounts which is particularly key for our customers in today’s economic climate. Since launching, we have seen incremental increases in interaction with the redemption email and above-average conversion rates.

“This shows us that the offer is resonating particularly well with consumers, and that food and drink-related GWPs remain popular despite overall squeezed budgets.  We expect this benefit to become even more prevalent once tastecard’s expansion into our social campaigns occurs too, and we will certainly be exploring further food and drink offers to incorporate in the future to continue driving customer response and loyalty.”   

Kalli said: “Consumer trust in retailers is currently incredibly unstable, which is having a detrimental impact on loyalty. However, the response that LookFantastic has seen from consumers as a result of the tastecard offering demonstrates that engagement can still be driven amid this difficult climate if brands are willing to explore options to provide added value for consumers.”

Interested in hearing leading global brands discuss subjects like this in person? Find out more about Digital Marketing World Forum (#DMWF) Europe, London, North America, and Singapore.

  • Duncan MacRae

    Duncan is an award-winning editor with more than 20 years experience in journalism. Having launched his tech journalism career as editor of Arabian Computer News in Dubai, he has since edited an array of tech and digital marketing publications, including Computer Business Review, TechWeekEurope, Figaro Digital, Digit and Marketing Gazette.

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