Retail Sector Is Most Successful at Inspiring Loyalty


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New research from arvato loyalty services, amongst over 1,000 UK consumers has revealed that the Retail sector inspires the most brand loyalty, with 3-in-10 favourite brands being in this sector. In particular, Supermarkets account for four in every five retail favourite brands indicating that consumers do actually feel loyalty towards the brands they buy. The report also reveals that 85% of adults say that they are loyal to their chose brand, with a quarter rating that feeling of loyalty as ten out of ten. In second and third place came the Food & Drinks market and Financial Sectors sector respectively, the latter of which surprisingly scored 1-in-8 respondents approval as their favourite brand in this category.

These findings also reveal the top five ‘loyalty inspiration’ factors, the aspects of a brand that consumers consider the most important it inspiring and securing their loyalty. These included, quality products, helpful, knowledgeable staff, ease of contact, being able to recognise customers and their value, and a brand experience that is enjoyable at every single touchpoint. These results were consistent across both genders and across all age groups, with the exception of 18-24 and thirty-somethings, who consider their fifth most important factor to be how well ‘the brand’s image fits my personality’. However, fewer than 10% of respondents considered brand ‘cool’ or peer pressure to have a substantial affect on their brand loyalty.

Whilst the basic concept of loyalty and relationship management should evidently not be challenged, best practice to translate loyalty initiatives into commercial success still seem to remain – in the minds of consumers – the province of a handful of leading brands. Companies with loyalty schemes, or contemplating loyalty initiatives, would be well advised to investigate what their customer feel would inspire their loyalty, as the fundamental building block of any such initiative’s commercial success.

Graham Ede
arvato loyalty services
Graham Ede is managing director of arvato loyalty services, owned by arvato services, Europe's largest CRM service provider and part of Bertelsmann Group. Ede's highly developed sense of entrepreneurialism and enterprise has been gained through working within such prestigious organizations as Barclays Bank, Hoares Private Bank and Porsche Cars.


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