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US consumer brand loyalty falls off from 2022

Numbers Game: The numbers you need to know.
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Francis Scialabba

less than 3 min read

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If a customer who’s loyal to a brand eventually ditches that brand, how loyal were they in the first place?

It’s a question that can be answered by examining how consumer loyalty has evolved over the past year. It’s a figure that has dropped 11% from 79% in 2022 to 68% in the US this year, according to the SAP Emarys Customer Loyalty Index.

  • SAP identified that nearly half consumers surveyed are attracted by “incentivized loyalty,” meaning their loyalty is contingent on prices.
  • And incentivized loyally fell a staggering 36% from 76% in 2022.

Although 49% of shoppers expected to find discounts, 59% said they would switch brands if a less expensive option was available, making cost the top priority when it comes to shoppers frequenting their store of choice.

  • “It is imperative retailers show customers they ‘get’ them because even when inactive, consumers could return to a brand once they can afford to do so,” SAP’s report read.

The retailers who are retaining shoppers are doing so through top-of-the-line customer service (52%), offering discounts and rewards (49%), and providing options like early access to sales or new products through those rewards (39%).

And although the US saw that 14% drop in customer loyalty, it’s very much a global phenomenon, as the US is still the top country when it comes to retaining customers and having options for brands to earn and maintain those shoppers, per SAP.

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

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