Creating loyalty in volatile times
PwC Customer Loyalty Survey 2022
Volatility in consumer behavior is at an all-time high. The COVID-19 pandemic fundamentally changed many needs and preferences. Inflation and a turbulent economy are influencing buying decisions. Technology creates unprecedented connectivity and access to goods and services. Consumers know more about where companies stand on environmental, social and governance (ESG) issues and expect businesses to share their beliefs. And let’s be honest: Consumers as a whole are more discerning than ever.
This all leaves companies wondering how they can better shape consumer demand and drive engagement with their brands. Unlocking what drives consumer loyalty has companies asking, “How do I attract and retain my customers?” Along with providing new insights from more than 4,000 consumers in the US, our PwC Customer Loyalty Survey 2022 reveals several opportunities for businesses to strengthen relationships, increase customer lifetime value and reduce the likelihood that they’ll leave.
What wins — and can lose — a customer’s loyalty
More than one-fourth of survey respondents told us they stopped using or buying from a business in the past year, and bad experiences — with products or services and/or customer service — were the overwhelming reasons why.
As inflation persists, more than half of respondents said getting good value for the price of a product or service is a top reason why they keep using or buying from a business
Personalisation is a priority, too. Four out of five consumers would share some type of personal data for a better experience, with such information as email address, birthday and age, and sex/gender identity topping the list.
In an increasingly automated world, the human touch still matters. At least one-third of respondents said human interaction is important to their loyalty, and for many types of businesses it was more than 50%.
Ignore the digital dimension at your peril. More than half of respondents said they’re less likely to be loyal to a brand if its online shopping experience isn’t as easy or enjoyable as shopping in person.
As you might expect, generations differ significantly when it comes to loyalty. Generation Z (ages 18-25) and Millennials (26-41) are generally more mobile than Generation X (42-57) and Baby Boomers (58 and older), but they’re also more open to personalisation and perks that can build loyalty.