Study shows personalisation key to consumer loyalty in UK

New research highlights the variations across generations regarding how companies can earn consumer loyalty.

A study conducted by customer data solutions provider Plinc reveals the preferences of 2,000 individuals across the UK on how businesses can secure repeat customers, a task that is reportedly more cost-effective than attracting new ones. The outcome underlines the importance of personalised experiences, which continue to resonate across different age groups.

The research finds that a majority of consumers, 51%, prefer to buy from brands with which they have previously had positive interactions. Personalised offers, promotions, and discounts are identified by 41% of respondents as the most effective methods for encouraging repeat purchases.

Younger demographics, namely Gen Z and Millennials, appear to be driving the demand for personalisation. According to the study, 75% of Gen Z and 70% of Millennials expect companies to personalise website experiences to improve navigation, while 66% of Gen Z and 60% of Millennials expect brands to comprehend their individual needs and interests.

Plinc's research also indicates most consumers are willing to share their data with companies, as long as this results in enhanced customer experiences. This willingness is shared by 58% of respondents, suggesting an opportunity for brands to build unified data foundations and create customer profiles to better serve their audience.

In terms of marketing communication preferences, the study shows that poor communication can deter customers; 52% of participants indicate they would avoid repurchasing if faced with inadequate communications. Email remains the most preferred communication channel, endorsed by 61% of all participants. However, Gen Z is leaning towards alternative channels, with 30% open to app communications, 36% to social media, and 23% to SMS.

Loyalty programmes continue to hold significance for enticing consumers to become long-term patrons, with 56% of respondents stating these programmes could secure their brand loyalty. Notably, 71% of Gen Z and 60% of Millennials express the importance of such schemes.

Stuart Russell, Chief Strategy Officer at Plinc, stated, "Compelling one-time customers to return again — and then again and again — to purchase from them has become the greatest challenge for businesses today. Customers are becoming more promiscuous, especially during periods of economic austerity, and methods to encourage repeat custom are often obscure. This new research from Plinc will go a significant way to explaining how marketing and CRM teams can adjust their operations to meet customers where they want you."