Discounts Are The Best Way To Bring Back Disengaged Customers
Brand loyalty is increasingly fragile, with 37% of consumers in the US, UK, and France reporting that they have switched away from or become less loyal to a brand in the past year. This trend, according to a recent Marigold report, is even more pronounced among younger consumers, with half of 18-24-year-olds disengaging from brands they previously favored. To win back lost customers, brands need to offer better discounts (50%), improve product/service quality (42%), and enhance customer service (41%). A smaller but notable group (22%) would reconsider a brand if it adjusted its stance on societal issues.
When making purchase decisions, consumers overwhelmingly prioritize product and service quality over price (75%), with this sentiment increasing with age. Customer service is also highly valued, with 51% ranking it above price, particularly among older consumers. Ethical values, including social and environmental stances, are important to 28% of respondents, though this factor holds greater weight for younger consumers (36% of 18-24-year-olds).
Quality remains the strongest driver of brand loyalty, with 82% of respondents saying it is "important" or "critically important" to their continued patronage. While two-thirds (68%) express loyalty to certain brands and are willing to pay more for them, an even larger share (80%) admit they will switch to competitors for convenience or better pricing. Furthermore, 70% frequently buy from the same brands but don’t necessarily feel loyal to them, while 23% report having no brand loyalty at all.
Given these insights, brands must focus on delivering exceptional quality, strong customer service, and meaningful value to retain customers. Price sensitivity and convenience remain key decision factors, meaning brands must strike a balance between loyalty-driven initiatives and competitive pricing strategies.
Key Actionable Takeaways:
Prioritize Product & Service Quality – Since quality is the top driver of brand loyalty, focus on maintaining high standards to retain customers.
Offer Discounts & Incentives – With 50% of consumers open to returning for better deals, use strategic promotions to re-engage lost customers.
Enhance Customer Service – Improving customer support can help regain trust and boost loyalty, particularly among older consumers.
Monitor & Adapt to Consumer Expectations – Stay ahead of changing preferences by regularly collecting and analyzing customer feedback.
Balance Price & Value – While many consumers are brand-loyal, 80% will switch for lower prices or convenience—consider competitive pricing strategies.
Develop Loyalty Programs with Tangible Benefits – Offer exclusive perks, discounts, or early access to reinforce long-term customer relationships.
Highlight Ethical & Social Responsibility Efforts – Younger consumers prioritize brand values, so clearly communicate sustainability and social impact initiatives.
Optimize Omnichannel Convenience – Make purchasing as easy as possible with seamless online and in-store experiences to retain customers.
Use Personalized Marketing to Strengthen Engagement – Tailor promotions, recommendations, and messaging to create a deeper connection with consumers.
Reinforce Brand Trust Through Transparency – Ensure clear, honest communication about pricing, product quality, and company values to strengthen consumer confidence.
