��������

By David Simpson

When a customer is loyal to a brand, the company reaps huge benefits: repeated purchases, less concern with price, good word of mouth. But as shopping options have multiplied, some observers have declared that brand loyalty is dead.

A new study from ��������, however, contradicts that assessment – finding, in fact, that 81% of consumers around the world are loyal to at least one brand.

“This study debunks that myth and shows loyalty is still a very powerful force in consumers’ decisions,” said Yuping Liu-Thompkins, professor of marketing and director of ��������’s Loyalty Science Lab.

The Future of Loyalty Report, released June 22, explores what loyalty means to consumers, how loyalty programs make an impact on them and what drives their loyalty decisions. Researchers surveyed more than 4,000 customers in the United States, United Kingdom, Australia and India.

Here is the percentage of consumers in each country who stated they are loyal to a brand, and their average loyalty ratings:

• United States: 84% (6.2 out of 7)
• United Kingdom: 73% (6.1 out of 7)
• Australia: 76% (6.0 out of 7)
• India: 93% (6.3 out of 7)

The brands that the most consumers in each country indicated they were loyal to:

• United States: Amazon, Walmart, Target, Apple, Nike
• United Kingdom: Tesco, Amazon, Sainsbury’s, Mark & Spencer, Asda
• Australia: Woolworths, Coles Supermarkets, Myer, Kmart, Nike
• India: Amazon, Flipkart, Zara, DMart, Nike

The study also detected an emerging trend in brand loyalty among younger consumers that bubbles under the surface of traditional drivers like product, price and service. The research found that, when making loyalty decisions, three-quarters of consumers ages 18-34 seek:

• Alignment with their personal values
• Personalized experiences

Consumers under 35 were also far more likely to care about the social causes that brands support. Environmental protection topped the issues that consumers cited as important. Others included social justice, equity and diversity; the well-being of vulnerable populations; and poverty and hunger.

In addition, 65% of consumers in the under-35 group cited social connection as important when choosing brands to become loyal to.

“I think that as those young consumers mature into the marketplace and gain more spending power, we should see the significance of these less conventional loyalty drivers rise over the next five to 10 years,” Liu-Thompkins said.

The report also investigates reward programs, company culture, and interaction between companies and customers. These insights will help companies navigate the loyalty space in coming years.

The Loyalty Science Lab creates and promotes cutting-edge scientific research on brand and customer loyalty. Through collaborative efforts between marketing practitioners and academic researchers from multiple disciplines and multiple industries, the lab identifies high-priority loyalty-related issues, engages in deep, evidence-based scientific research and disseminates the insights for the benefit of loyalty research and practice. To contact the lab, email loyaltysciencelab@odu.edu.