Stat: Brand loyalty is on the decline

Once a defining factor of purchasing decisions, brand loyalty is becoming a rare resource in retail. According to a study by digital transformation consultancy Edit and Kin + Carta, only 6% of UK and US consumers feel loyal to e-commerce brands, compared to 9% for finance and 21.5% for offline food and drink retail.

A new set of drivers are influencing the ‘habit’ generation, who are more likely to shop according to incentives rather than emotions. The report finds that even habitual shoppers do not necessarily consider themselves loyal, suggesting that companies must reconsider emotional marketing strategies. ‘Brand affinity through emotional connection has weakened to be replaced by habitual ties based on lived and related experience with brands and retailers,’ explains Rob McGowan, joint managing director at Edit.

To increase brand loyalty, e-tailers must appeal to consumers in the earliest stages of shopping. A third of Gen Z respondents, for example, would sign up for brand communications in exchange for exclusive products. To explore other loyalty incentives, readers can revisit the Loyalty Market.