83% of UK Consumers Believe Brands Don't Value Them Enough

A recent study by SAP Emarsys Customer Engagement uncovered a significant challenge for UK brands: 83% of consumers feel undervalued by their favorite brands. Despite many consumers remaining loyal, this sentiment reveals a stark disconnect between brands’ efforts and customer expectations. Only 17% of consumers feel “truly valued,” showing a critical need for companies to reimagine their customer engagement strategies.

Key Drivers Behind Brand Loyalty

The study identified several factors that influence customer loyalty:

• Established Reputation: 40% of respondents cited long-standing brand trust as a major factor.
• Consistent Messaging: 30% of consumers value clear, reliable communication.
• Iconic Branding: 22% remain loyal due to the brand’s distinct identity.

However, relying on these factors alone is insufficient. Consumers demand more personalized and meaningful interactions to feel appreciated.

Why Customer Retention Should Be a Priority

It’s well-documented that retaining customers is more cost-effective than acquiring new ones—by as much as five times. Yet, with 52% of fashion consumers staying loyal to a single brand, the potential financial losses from neglecting this group are considerable. To thrive, brands must focus on creating experiences that make their existing customers feel truly valued.

The Role of AI in Enhancing Customer Value

Artificial intelligence (AI) offers a powerful solution to bridging the loyalty gap. AI-powered tools can analyze vast datasets to understand consumer behavior and preferences, enabling brands to deliver tailored experiences. Meghann York, Global Head of Product Marketing at SAP, emphasizes that real-time, personalized interactions across channels can redefine what value means for individual customers. This approach could include exclusive access, bespoke recommendations, or personalized loyalty rewards.

Five Types of Consumer Loyalty Uncovered

The study highlighted the evolving nature of consumer loyalty, identifying five distinct types:

• Incentive Loyalty: Driven by rewards and perks.
• Inheritance Loyalty: Passed down generationally.
• Silent Loyalty: Involves habitual purchases without public advocacy.
• Ethical Loyalty: Based on alignment with a brand’s values.
• True Loyalty: A deep connection built on trust and commitment.

Encouragingly, true loyalty has grown by 26% between 2021 and 2024, indicating an increasing consumer preference for authentic relationships with brands.

Why Consistent Feedback is Essential

One effective way for brands to demonstrate value is by actively listening to customers. Feedback loops not only help identify pain points but also reinforce that customers’ opinions matter. By acting on this feedback, brands can nurture trust and create a sense of partnership with their audience.

Practical Steps to Improve Customer Perception

To address the undervalued sentiment among consumers, brands can adopt these strategies:

1. Personalize Engagement: Use AI and data insights to deliver tailored communications.
2. Build Transparent Connections: Be clear about brand values and efforts to meet customer expectations.
3. Reward Loyalty: Design programs that genuinely acknowledge and reward customer dedication.
4. Maintain Quality: Consistently exceed expectations in product and service delivery.
5. Act on Feedback: Demonstrate that customer input drives meaningful changes.

Closing the Loyalty Gap

Brands should take note of the increasing disparity between consumer loyalty and perceived value. By prioritizing personalization, transparency, and meaningful engagement, businesses can foster stronger relationships with their customers. As the study highlights, the road to true loyalty is paved with consistent, value-driven actions.