Latest customer loyalty trends paint a concerning picture for brands as they enter 2025: while consumer loyalty appears strong on the surface, with high rates of repeat purchases and brand advocacy, there’s a critical emotional disconnect underneath.
New research from SAP Emarsys Customer Engagement reveals that 83% of UK consumers feel undervalued by the brands they remain loyal to, signalling a potentially costly oversight in how businesses approach customer relationships.
The comprehensive Customer Loyalty Index 2024, which surveyed over 12,000 consumers globally including 2,000 UK respondents, uncovers a challenge facing retailers and brands navigating a complex loyalty landscape.
While consumers demonstrate loyalty through various behaviours, from repeat purchases to brand advocacy, the emotional connection between brands and their customers is falling short.
Sara Richter, CMO at SAP Emarsys, emphasises the evolving nature of customer loyalty trends: “Customer loyalty is the holy grail of marketers. From repeat purchases to average order value and customer lifetime value, loyalty can significantly impact brands’ business objectives. But today, the nature of loyalty is changing.”
The research identifies five distinct types of loyalty: Incentive, Inheritance, Silent, Ethical, and True Loyalty. True loyalty—unwavering, unshakeable loyalty built on trust, love, and devotion—has seen a 26% increase from 2021 to 2024, reflecting a shift towards stronger brand connections.
Despite the positive trend in True Loyalty, the study reveals that only 17% of UK consumers feel genuinely valued by their preferred brands. This disconnect is particularly concerning given that customer acquisition costs can be up to five times higher than retention costs, making it important for brands to nurture existing customer relationships.
The fashion industry exhibits exciting metrics, with 52% of consumers demonstrating loyalty to a single brand. However, their loyalty appears to be built on fragile foundations, as customer loyalty trends indicate that traditional loyalty drivers are evolving.
The research shows that 40% of consumers attribute their loyalty to long-standing brand reputations, 30% to brand consistency, and 22% to iconic branding. Meghann York, Global Head of Product Marketing at SAP, points to AI as an important tool for addressing this loyalty gap.
“With AI, brands can identify and engage diverse audiences, meeting customers where they are with tailored, real-time experiences across every channel. This technology enables brands to understand and deliver what value means to each customer—whether it’s exclusive access, personalised rewards, or tailored recommendations,” she said.
The study also reveals complex patterns in how consumers express their loyalty. In 2024, 69% of consumers used mobile apps to engage with their favourite brands, while 59% demonstrated loyalty through frequent shopping. Additionally, 47% show their support through brand recommendations to friends and family.
Another significant finding from the customer loyalty trends research is the impact of AI on consumer behaviour. The technology makes it easier for customers to discover alternatives and compare prices across platforms, potentially affecting brand loyalty. However, AI can also allow brands to create more personalised, meaningful customer experiences.
The research suggests several key areas for brands to focus on:
- Personalisation remains crucial, with brands needing to leverage AI for tailored offerings and communications,
- Creating memorable experiences emerged as a key loyalty driver, alongside high-quality products,
- Mobile app development and enhancement should be prioritised, as app users show higher loyalty rates,
- Product quality and competitive pricing continue to be fundamental for retaining customer loyalty.
“Value can be subjective,” York says, “so SAP Emarsys empowers brands to understand and deliver what value means to each customer. This creates a fair value exchange, where customers are happy to share something as simple as an email or a birth date because they see clear, tangible benefits in return.”
As brands prepare for NRF 2025, insights into customer loyalty trends provide crucial guidance for developing more effective retention strategies. The research suggests that while consumers may demonstrate loyalty through their actions, brands should work harder to create emotional connections and deliver meaningful value to maintain and strengthen these relationships.
The challenge for brands will be to leverage technology and data and maintain the human touch customers desire. As customer loyalty trends evolve, adapting and responding to changing consumer expectations will be important for long-term success in customer retention and brand loyalty.
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