Customer Loyalty is About People, Not Just Points

Epsilon Loyalty Index UK reveals that successful hearts is the important thing to loyalty right this moment

As UK shoppers battle inflation, a cost-of-living disaster, and financial uncertainty, the necessity for manufacturers to construct loyalty with consumers is vital. And it’s what they need, with 72% indicating rising costs imply loyalty applications are extra vital than ever. However what constitutes loyalty right this moment? Is all of it about offering worth, or is there one thing deeper? Effectively, the not too long ago launched Epsilon Loyalty Index UK explores this – and there are some attention-grabbing findings.

Recognizing the points influencing loyalty

Loyalty is multifaceted, and to grasp it, you have to perceive what influences it. Our analysis discovered that this boils down to 3 points: habits, attitudes, and drivers.

Habits is apparent, with folks demonstrating loyalty by their willingness to spend on a model. However we have to go additional than monetary dedication. Attitudes are vital to recognizing what’s taking place in a client’s coronary heart and thoughts. And eventually, what drivers – these significant actions manufacturers carry out – endear a purchaser to a model? In essence, drivers affect angle, and angle drives behaviors.

This highlights how loyalty has modified. Historically, factors have been the bedrock of loyalty applications, however now it’s gone past this rational factor. Growing genuine emotional connections with prospects is vital, with loyalty now being derived from your entire expertise somebody has with a model.

In right this moment’s difficult financial local weather, you’d be forgiven for considering that worth was the important thing consideration for consumers. Surprisingly, it’s not. Throughout all 4 classes the analysis lined – vogue, electronics and home equipment, grocery retailing, and banking – Share of Coronary heart was the important thing builder of behavioral loyalty.

For groceries, a sector with little differentiation, the belief has been that retailer proximity to the place somebody lives influences the place they store. Nevertheless, at 47%, this class noticed the best contribution of any for Share of Coronary heart as an attitudinal loyalty builder. Even in electronics and home equipment, the place worth for cash is usually high of thoughts, Share of Coronary heart is vital.

This demonstrates the significance of belief and why folks’s wants, values, and preferences should be acknowledged, understood, and acted upon to offer a customized expertise. For loyalty applications to work right this moment, they need to embrace this and jettison the normal method of rewarding prospects in the identical approach.

Understanding loyalty’s 4 buyer sorts

With the necessity to deal with prospects individually, the analysis found 4 distinct client sorts in the case of loyalty.

  1. True Loyalists are emotionally loyal to at least one model and, because of this, are robust advocates keen to pay extra to expertise the model.
  2. Multi-Model Loyalists are extra fluid, and their loyalty is unfold throughout a number of manufacturers, which they’re joyful to change between.
  3. Explorers don’t have any emotional connection to a selected model and are open to novelty and experiencing totally different ones.
  4. Transactionals search out the perfect offers for themselves, choosing whichever model gives them the perfect worth or reward.

Every kind is distinct, and by recognizing this, manufacturers can undertake related approaches to affect and drive loyalty.

So, in the case of loyalty, how does this search for every class? Effectively, let’s discover every of them.


On this class, the primary loyalty accelerator is personalization. With type a person alternative, being private in the way you have interaction prospects is vital to win them over. And successful them over is significant as a result of vogue has the best proportion of Explorers of the classes. 

On-line accounts for 61% of spend, rising to 66% for millennials, who’re additionally huge customers of social buying. This implies having an amazing personalised expertise on-line and offline is vital for fulfillment.   

Relating to loyalty applications, folks need incentives alongside unique entry to occasions and gross sales and having their loyalty acknowledged. However if you wish to enchantment to a youthful viewers, they relish experiences and feeling a part of a neighborhood.

Electronics and home equipment

Once more, most purchases occur on-line. Nevertheless, repeat retailer visits are a vital predictor of loyalty. And whereas 1 / 4 of their prospects are Transactionals, Share of Worth as a predictor of loyalty got here a lowly third to Share of Coronary heart and Share of Thoughts, scoring the bottom throughout all classes.

Consumers look past worth, and in the case of loyalty applications, they prize value-added companies. Delivering right here might help manufacturers engender loyalty and win on this house. 

Not surprisingly, getting the basics proper, significantly round worth, product, and repair ranges, is important for this class. Nevertheless, if you wish to speed up loyalty, encouraging buyer participation and suggestions and providing academic content material to assist folks make the appropriate shopping for selections is essential. 

Grocery retailing

Even with a commodity providing, model belief, shopping for expertise, and assembly buyer wants depend lots in direction of loyalty. Though there was a giant uptick in on-line shopping for, most spend nonetheless occurs in-store, significantly bigger ones. This highlights the significance of providing an enhanced, enticing, welcoming atmosphere that delivers the pleasing shopping for expertise shoppers need. Doing so helps create an emotional connection, which is essential to encouraging repeat visits, an important loyalty driver.

Whereas incentives stay probably the most valued factor of a grocery loyalty program, youthful audiences are attracted extra by content material that helps them make knowledgeable selections about what they eat, entry to experiences, and a way of belonging. To enchantment to this youthful group, grocery retailers should tie these points into their loyalty program.


As soon as influenced by who your mother and father banked with, this now not rings true. 40% of youthful audiences are choosing digital banking, whereas Explorers is the primary buyer kind on this class. Of all of the classes, it additionally has the bottom proportion of True Loyalists by some margin.

Coping with folks’s cash means getting the basics proper is important. However, nonetheless, Share of Coronary heart, particularly regarding belief, is the main contributor to loyalty. Nevertheless, Share of Worth is the best in comparison with the opposite classes. This acknowledges the need for worth. It additionally acknowledges that inconvenience round switching does assist foster behavioral loyalty.     

Relating to age, there’s a break up round what folks worth in a loyalty program. With older teams, it’s money again and customer support, whereas youthful audiences need recognition, value-added companies, and experiences.

Above all, the report highlights that right this moment, loyalty is much less about factors and extra about genuine connections so it should be approached as providing an expertise, not only a program. Understanding and responding to buyer wants whereas addressing their need for schooling, participation, and recognition can pave new methods for loyalty. Take this under consideration, and also you’ll create extra worth to your prospects and engender better loyalty.

To search out out extra in regards to the altering nature of loyalty, the brand new insights the Epsilon Loyalty Index UK reveals, and which 40 manufacturers have been lined within the research,  obtain your copy right here. 

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