What Might Cause You to Lose Your Customer’s Loyalty?

February 2, 2022

Factors such as providing high-quality products, having a strong sense of community and better prices have been shown to lead to brand loyalty. But, what can turn consumers off of their favorite brands? A recent report [download page] from Clarus Commerce examines what stops consumers from being loyal to brands.

While having high-quality products attracts consumers to a brand, about two-thirds (65%) of the 2,500 US consumers surveyed say that they may lose their loyalty to a brand if its product quality declines. Likewise, while price often contributes to brand trust and influences consumers to purchase products, when a brand increases its prices, almost half (47%) of respondents say they may lose their loyalty to that brand and try a different one instead. 

Impact of a Brand’s Stance on Social Issues

A majority of consumers believe that brands are effective in raising awareness of important issues and in influencing politics. And, although consumers tend to believe that brands are taking a stand on social topics for PR or marketing purposes or because they are jumping on the bandwagon, one-third of respondents say they will likely lose their loyalty to a brand if it takes a stance on a social issue that they disagree with. About 1 in 6 also say they are likely to lose their loyalty if they hear that a brand isn’t living up to its publicly stated values. 

For the most part, respondents indicate that their favorite brands are aligned with their own values, especially in regards to environmental and green practices (52%), their treatment of employees (51%), gender equality (49%) and racial justice (48%). It’s worth noting that young consumers are more aware of the values and social stances of brands than older consumers. Only about 4 in 10 Gen Z (38%) and Millennials (42%) claim to be unaware of their favorite brand’s values, while about 7 in 10 Baby Boomers (68%) and those older than 74 (72%) say the same.

Political and Media Influence

Word of mouth has always been a top influencer in making a purchase decision. It also influences loyalty to a brand, with three-quarters (76%) of respondents citing the opinions of friends and family as having an impact on their loyalty to a brand. 

To a lesser extent, media coverage (50%) and one’s own political views (54%) impact brand loyalty. Younger consumers are most likely to be influenced by political views or media coverage. Gen Z consumers, in particular, say they are influenced by a brand’s political views (66%) and by media coverage of a brand (69%), while a majority (63%) of Millennials’ brand loyalty is influenced by media coverage. 

Despite all this, 3 in 10 consumers say that they don’t believe their values need to align with a brand’s, with more than 4 in 10 (44%) also saying they will continue to buy from a brand that holds contrary beliefs to their own.

The full report can be found here.

About the Data: Findings are based on a September 2021 survey of 2,500 US consumers.

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