UK brands risk loyalty loss as personalisation gap widens
More than half of UK consumers are being discouraged by impersonal brand interactions despite increasing expectations for tailored experiences, according to research from SAP Emarsys.
The SAP Emarsys Global Consumer Products Engagement Report surveyed 2,000 UK consumers and 100 senior marketers to assess the state of personalisation in brand engagement. The report found that 55% of consumers are dissatisfied with brand experiences that do not feel personal to them.
Additionally, 68% of consumers indicated they are more likely to remain loyal to brands that provide experiences tailored to their individual needs. The report suggests that while brands are investing heavily in retail media, these resources are not always resulting in long-term customer loyalty due to the gap in personalisation.
Data barriers
According to the findings, less than half (44%) of marketers believe their campaigns are truly personalised. Access to real-time data remains a significant challenge, with only 38% of marketers able to use real-time data across channels. This limitation impedes their ability to act on behavioural insights necessary for customisation.
"Big budgets are only as effective as the marketers that wield them. If you're spending money in a way that doesn't reach the consumer on their terms, it's easy to waste that advantage – whether that's failing to effectively personalise their experience with you, or failing to reach them through the channels that they prefer," said Daniel Hagos, SVP Revenue & Managing Director at SAP Emarsys.
The report highlights key structural challenges for marketers, such as fragmented data sets and outdated technology stacks. These limitations result in generic, one-size-fits-all experiences which are particularly unappealing to younger consumers, who often expect higher levels of personal relevance in their brand interactions.
Unified customer view
Only 38% of UK marketers report having access to real-time customer data from key channels—including email, app, in-store, and paid media. The inability to consolidate and leverage data across these touchpoints means that brands risk overspending for underwhelming outcomes.
Hagos explained the importance of a data-centric approach, stating:
"The most powerful engagement is based on a sound data-driven understanding. Rather than taking a scattergun approach with their resources, brands need to base their approach around a genuine understanding of each customer as individuals."
Consumer expectations
Consumer expectations around personalisation continue to increase. The research found that 61% of consumers actively value personalised content when engaging with brands. The gap between consumer expectations and actual delivery is creating pressure for marketers to rethink their strategies.
By failing to deliver on expected personalisation, brands risk more than just reduced engagement. The report suggests that a lack of tailored experiences can drive away customers, particularly among digital-savvy demographic groups who are less tolerant of generic messaging.
Loyalty and investment
The findings illustrate a mismatch between marketing investment and customer outcomes. Brands are committing hundreds of millions to retail media with the intention of boosting engagement and loyalty, but a lack of effective personalisation is undermining these objectives.
The report indicates that aligning investments with meaningful, personalised experiences is crucial if brands are to realise a return on these expenditures and retain customer loyalty over time.
The research underlines the importance for brands to move away from transactional marketing approaches towards strategies that emphasise loyalty and data-driven understanding of the customer. The data suggests that bridging the personalisation gap may be key to improving both customer satisfaction and long-term brand performance.
