UK consumers feel undervalued by their favourite brands

Recent research conducted by SAP Emarsys reveals a significant gap in consumer perception of brand loyalty in the UK. 83% of consumers feel undervalued by their favourite brands.

The study surveyed over 2,000 UK consumers and identified key drivers of loyalty: 40% of respondents remain loyal due to a brand's long-standing reputation, 30% due to consistent branding, and 22% are attracted to iconic brands. Despite these factors, only 17% of respondents felt "truly valued" by the brands they support, indicating a potential issue for marketers in 2025 and beyond.

The implications of this disconnect are serious as businesses face rising customer acquisition costs. Research suggests it can be up to five times more expensive to attract new customers than to retain existing ones. This issue could threaten long-term market stability in industries such as fashion, where 52% of consumers report loyalty to a single brand.

Meghann York, Global Head of Product Marketing at SAP, highlighted the importance of meaningful connections in building true loyalty. She stated, "True loyalty is built by delivering meaningful connections and value at every stage of the customer journey. With AI, brands can identify and engage diverse audiences, meeting customers where they are with tailored, real-time experiences across every channel." York emphasised the need for brands to understand and deliver subjective value to each customer, whether through exclusive access, personalised rewards, or tailored recommendations.

PUMA, through a partnership with SAP Emarsys, is an example of bridging the loyalty gap. The brand employs AI-driven insights to tailor customer journeys across various platforms, including direct-to-consumer, in-store, and third-party channels. Through partnerships and strategic content like shoppable videos on TikTok, PUMA targets younger demographics and sustains engagement without interrupting the browsing experience.

PUMA customises offers, provides exclusive app content, and facilitates early launch access using AI to empower marketer engagement. According to SAP Emarsys research, app users demonstrate 47% greater loyalty than those using other channels, underscoring the effectiveness of personalised engagement.

As the retail world prepares for NRF 2025 in New York, SAP Emarsys and PUMA plan to showcase their strategies at the event. This includes activating the SAP Emarsys booth, where attendees can customise sneakers and integrate insights from PUMA's CRM and loyalty data.

The data from this research was collected through a survey conducted by Opinion Matters with 2,010 UK respondents aged 16 and over from June 12 to 17, 2024.