Recent studies from SAP Emarsys have laid bare a troubling disparity between brand loyalty and customer satisfaction across both the UK and US. Despite a strong sense of loyalty among consumers, a striking 83% feel undervalued by the very brands they support.
A Tale of Two Markets
In the UK, research surveying over 2,000 consumers found that 40% stay loyal to brands with long-standing reputations, while 30% prioritise those with consistent branding and 22% gravitate toward iconic brands. However, only 17% feel “truly valued” by their preferred brands.
Across the Atlantic, similar findings emerged. The SAP Emarsys Customer Loyalty Index, which polled more than 4,000 U.S. consumers, highlighted nearly identical loyalty motivators: 43% cited long-standing reputations, 28% consistency, and 24% iconic branding. Yet, as in the UK, just 17% of loyal customers felt appreciated, leaving the majority disillusioned.
The Business Implications
This disconnect is more than just a consumer sentiment issue; it’s a direct threat to business sustainability. As Meghann York, Global Head of Product Marketing at SAP, explains: “True loyalty is built by delivering meaningful connections and value at every stage of the customer journey.” With customer acquisition costs up to five times higher than retention expenses, brands risk their bottom line by failing to foster deeper customer relationships.
Fashion brands, in particular, face heightened risk. In the US, 53% of fashion consumers remain loyal to a single brand. Yet, this loyalty hangs by a thread if brands fail to reciprocate with meaningful engagement.
Leveraging AI for Personalisation
York suggests that AI offers a solution by enabling brands to engage diverse audiences with real-time, personalised experiences. “Value can be subjective, so SAP Emarsys empowers brands to understand and deliver what value means to each customer,” she noted. Whether through exclusive access, tailored recommendations, or personalised rewards, the goal is to create a “fair value exchange” where customers feel their loyalty is acknowledged and rewarded.
PUMA: A Model of Omnichannel Loyalty
One brand bridging the gap between loyalty and satisfaction is PUMA. Through its partnership with SAP Emarsys, PUMA leverages AI-driven insights to personalise customer journeys across its direct-to-consumer platforms, in-store experiences, and third-party channels.
Innovative strategies, such as the use of TikTok’s shoppable videos, allow PUMA to connect with younger audiences seamlessly. By providing exclusive app content, early access to launches, and tailored offers, PUMA has demonstrated that personalised engagement drives customer loyalty—with app users proving 47% more loyal than those on other channels.
Looking Ahead: NRF 2025
Brands can explore PUMA’s strategies firsthand at NRF 2025, held from Jan. 12–14 in New York. SAP Emarsys and PUMA will showcase an exclusive activation, allowing attendees to design personalised sneakers using advanced CRM and loyalty data. This initiative underscores how AI can transform customer engagement into a dynamic, value-driven experience.
The message for brands is clear: loyalty is no longer guaranteed by reputation alone. As customer expectations evolve, meaningful, personalised engagement is the key to sustaining and deepening brand loyalty.
