PAUL & S REPORT

Is Loyalty Dead?

You have heard it before: customer loyalty is more elusive than ever. But is it really dead? We surveyed 2,000 consumers across the UK and Europe to find out.

52% of consumers say they are less loyal to brands now than they were five years ago.

Customer Loyalty Is Declining, But It’s Not Dead Yet

The truth is, brand loyalty is not dead, but it has been eroded by choice, convenience, and the digital world. Here’s what consumers told us:

Loyalty by Generation

Percentage of consumers who say they are less loyal to brands than five years ago:

• Gen Z: 61%
• Millennials: 54%
• Gen X: 48%
• Boomers: 39%

One third of Gen Z and younger Millennials use subscription plans as part of their regular routine.

30% of consumers say they have switched brands in the past year because of a single bad experience.

18% say they have switched because a brand failed to meet their expectations for convenience.

The New Rules of Loyalty

1. Make it easy for customers to switch between channels.
2. Offer flexible subscription options.
3. Reward loyalty with personalized offers.

Three strategies to win with loyalty, according to the data:

1. Flexible Subscriptions
   Consumers want the freedom to pause, skip, or cancel at any time.
2. Personalized Rewards
   Tailor offers to individual preferences and behaviors.
3. Omnichannel Convenience
   Seamless experiences across online and offline touchpoints.

Loyalty isn’t automatic. It’s something you have to earn, every day.

• 66% of consumers say they are more likely to stay loyal to brands that make it easy to manage their subscriptions online.
• 53% of consumers say they are willing to pay more for a better experience.
• 39% of UK consumers say they have switched brands in the past year due to poor customer service.
• 49% of European consumers say they are more loyal to brands that offer a seamless digital experience.
• 45% of consumers say they are loyal to brands that share their values.
• 41% say they are loyal to brands that support causes they care about.
• 35% of consumers say they are more likely to recommend a brand that offers a great digital experience.

Strategies to win over customers, including the fickle:

1. Meet customers where they are.
2. Offer flexible subscription plans.
3. Create a seamless digital experience.

Customer Experience Drives Customer Lifetime Value

66% of consumers say a positive experience is more important than price when it comes to loyalty.

Reward Loyalty with Personalized Offers

Consumers want to feel valued. Personalized rewards and offers go a long way.

Make It Easy to Switch or Cancel

Flexibility is key. Don’t lock customers in—give them control.

Offer Seamless Omnichannel Experiences

Customers expect to move between online and offline channels without friction.

Three strategies to maximize customer lifetime value, according to the data:

1. Put the customer at the center of your strategy.
2. Personalize the experience.
3. Focus on retention, not just acquisition.