UK consumers prioritise value over brand loyalty: study

Recent research by SAP Emarsys and Deloitte highlights a significant shift in consumer habits, with 57% of UK shoppers disregarding brand names when purchasing consumer goods, opting instead for quality and value.

The study involved surveys of over 2,000 UK consumers and 100 senior marketers at major consumer product brands, illustrating a growing challenge for marketers: engaging and retaining customers meaningfully as brand loyalty declines.

The research underscores a substantial industry shift towards enterprise resource planning (ERP) and SAP S/4HANA, driven by the need for consumer brands to dismantle silos, enhance operations, and foster meaningful customer engagement. SAP Emarsys labels this the 'Engagement Era', where brands are encouraged to develop robust data foundations and adopt AI-driven, omnichannel strategies to optimise customer loyalty and value.

Only 25% of consumer brands possess the technology required to execute effective omnichannel engagement strategies, placing them among a select group of market leaders.

This approach is exemplified by SAP Emarsys clients like Molton Brown and Ferrara, brands noted for their real-time engagement capabilities across the customer lifecycle.

Naresh Krishnamurthy, Senior Manager of Business Transformation at Molton Brown, commented on the importance of technology in their operations: "At Molton Brown, our customers are our top priority, so the technology we use is critical to our success and operational efficiency. Our collaboration with SAP Emarsys has been exceptional from the start. It has empowered us to transform customer engagement by delivering seamless experiences across both digital and traditional channels, keeping our customers at the centre of our business."

The remaining 75% of brands continue to struggle with transforming data into significant customer connections.

According to the research, 67% of marketers report increasingly difficult customer engagement.

Amidst rising living costs, 62% of UK consumers have shifted to own-label products for cost reasons, with 58% indicating these alternatives match the quality of branded products.

With brand apathy on the rise, marketers are recognising the necessity for change, with 82% aiming to significantly overhaul their customer engagement strategies by 2025. Nearly half (45%) are focusing on becoming more omnichannel by introducing new engagement channels, whereas 43% aim to heighten engagement across existing channels.

However, there remains concern about the data underpinning these strategies. Less than half of marketers (44%) believe their businesses are equipped to personalise marketing content using customer data, and merely 27% have implemented such personalisation practices.

Sara Richter, Chief Marketing Officer at SAP Emarsys, reflected on the implications of the findings: "UK consumers aren't just becoming less loyal to brands—they're ignoring them entirely. That's a wake-up call for marketers. Without a strong data foundation, it's impossible to deliver the real-time, personalised experiences needed to win that all-important 'true' loyalty. Molton Brown and Ferrera are outstanding examples of brands achieving this and hitting their business goals while winning the hearts and minds of customers by making every interaction count."