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Are Brands Failing Their Most Loyal Customers?
Despite strong surface-level loyalty - repeat purchases, glowing recommendations, and enduring engagement - 83% of UK consumers report feeling undervalued by the brands they support. New research from the SAP Emarsys Customer Engagement Survey exposes a significant emotional disconnect that threatens to unravel customer-brand relationships in 2025.
Sara Richter, CMO at SAP Emarsys, describes loyalty as "the holy grail of marketers" but warns that it’s evolving rapidly: “Loyalty impacts business objectives profoundly, but the nature of loyalty today is shifting. Emotional connections must lead the charge.”
The Changing Loyalty Landscape
The Customer Loyalty Index 2024, based on responses from 12,000 global consumers, illustrates just how complex loyalty has become. UK respondents highlight behaviours like frequent purchases and brand advocacy, but their reasons for loyalty are shifting.
Five distinct "loyalty types" were revealed by the research:
- Incentive Loyalty – Driven by rewards programs.
- Inheritance Loyalty – Stemming from generational ties.
- Silent Loyalty – Minimal interaction but steady purchasing.
- Ethical Loyalty – Rooted in a brand’s values or purpose.
- True Loyalty – Built on trust, admiration, and deep emotional bonds.
True Loyalty, which increased by 26% from 2021 to 2024, shows the rising potential of authentic brand relationships. Yet only 17% of UK consumers feel truly appreciated by their go-to brands- a disconnection brands can no longer afford. Why? Customer acquisition costs are as much as five times higher than retaining existing customers.
Meghann York, SAP’s global head of product marketing, points out that traditional loyalty drivers—long-standing reputations (40%), brand consistency (30%), and iconic branding (22%)—no longer fully capture customer expectations.
"AI gives brands the power to personalise experiences in real-time and uncover what value truly means to each customer," York notes.
Rewriting the Rules of Loyalty in 2025
In 2024, 69% of consumers used mobile apps to interact with their favourite brands, and 47% supported brands through recommendations. However, as AI simplifies price comparison and reveals competing products instantly, brands face stiffer competition than ever. The solution? Double down on creating emotional value.
Which highlights three loyalty-building strategies every brand must adopt:
1. Personalise Value at Scale
Customers don’t just want rewards—they want relevant rewards. Whether it’s exclusive perks or tailored offers, AI allows brands to meet individual needs. “Value is subjective,” York says. “Delivering personalised, meaningful value creates a fair exchange where customers willingly share data.”
2. Foster Emotional Connections
Beyond incentives, emotional engagement is crucial. Build loyalty through shared values, storytelling, and by actively showing customers they’re appreciated. This bridges the disconnect between transactional loyalty and a meaningful bond.
3. Embrace Tech Without Losing the Human Touch
Technology drives convenience, but loyalty thrives on human connection. Using AI to enhance—not replace—the human element creates interactions that feel authentic. Think tailored experiences delivered with genuine care.
As Richter puts it: “Loyalty isn’t static. It’s an ever-changing relationship built on relevance, empathy, and shared purpose.”
Final Thoughts…
Customer loyalty in 2025 is more than a data point; it’s a relationship, a dialogue, a mutual promise. The SAP research underscores this: while consumers exhibit loyalty through behaviour, the real prize is their heart—and brands must work harder to earn it.
True loyalty doesn’t live in discounts or catchy campaigns. It thrives where relevance meets recognition, where purpose aligns with customer values, and where brands show—through action—that they value their supporters as much as their bottom line.