The days of unwavering brand loyalty are fading for UK consumers, with new research revealing that 57% of Brits no longer pay attention to brand names when making purchasing decisions. This shift in consumer behaviour highlights a growing trend where shoppers prioritise product functionality and affordability over established labels.
The study, conducted by SAP Emarsys in collaboration with Deloitte, surveyed over 2,000 UK consumers and more than 100 senior marketers, shedding light on how changing attitudes are reshaping the retail landscape. It found that, as cost-of-living pressures continue, 62% of Britons have turned to own-label products, seeking more affordable alternatives. Furthermore, 58% believe these store-branded products offer comparable quality to branded items, further eroding brand loyalty.
The research paints a challenging picture for consumer brands, as they struggle to connect with a more indifferent consumer base. While some companies are responding effectively, the majority are lagging behind. The survey revealed that only 25% of consumer product brands have well-established customer engagement technologies and strategies, putting them ahead in an increasingly competitive market. These brands are embracing omnichannel, AI-driven engagement strategies that turn data into meaningful customer interactions—key to building true loyalty.
A prime example of success in this arena is Molton Brown, the luxury fragrance and beauty brand. Naresh Krishnamurthy, Senior Manager of Business Transformation at Molton Brown, shared how their partnership with SAP Emarsys has allowed the brand to engage customers seamlessly across digital and traditional channels, ensuring customer-centric experiences that foster lasting relationships.
However, the research underscores that the majority of brands are still struggling with this transformation. A significant 67% of consumer product marketers agree that it is increasingly difficult to create meaningful connections with customers, which is compounded by the challenge of personalising marketing content. Just 44% of marketers feel confident in their ability to leverage customer data to personalise campaigns, and only 27% are currently executing such strategies.
As consumer apathy grows, marketers recognise the urgent need for change. A striking 82% of marketers surveyed acknowledged the necessity to overhaul their customer engagement strategies by 2025. Many are focusing on expanding their engagement through new channels, with 45% prioritising omnichannel strategies, while 43% aim to deepen engagement through existing platforms.
Sara Richter, CMO at SAP Emarsys, highlighted the importance of a robust data foundation, stating, “UK consumers aren’t just becoming less loyal to brands—they’re ignoring them entirely. That’s a wake-up call for marketers. Without the right technology and data insights, it’s impossible to deliver the real-time, personalised experiences needed to cultivate true loyalty.”
The research serves as a sobering reminder for brands to invest in the tools and strategies necessary to adapt to the evolving consumer landscape. While some brands like Molton Brown and Ferrera are already excelling, the majority must catch up or risk being left behind in the ‘Engagement Era,’ where customer connection and personalised service are paramount to long-term success.
