Loyalty Depends on Quality And Service, And Gen Z Is Most Likely To Bolt

Consumers are restless, and many will leave when a brand irritates them, according to Creating Loyalty In Volatile Times, a study by PwC.

Gen Z is most likely to try a new brand—39% say they would, compared to 35% of millennials and 31% of Generation X. 

Indeed, 32% of Gen Z stopped using or buying from a company in the past year. In contrast, only 27% of millennials and the same percentage of Gen-Xers did so. Overall, 26% of consumers have dumped a brand in the last 12 months.  

Boomers seem stuck in their ways, with only 19% saying they are likely to try a new brand. And 23% did stop patronizing a brand.   

But it all depends on the product area. Consumers are likely to switch restaurants (44%), consumer goods (38%) and supermarkets (36%). And 52% say they would be less loyal if the online experience isn’t as enjoyable as the in-person one.  

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On the positive side, 82% of consumers would share some type of personal data for a better customer experience. 

In addition, 87% want a personalized experience, and 53% say value for the price is the leading reason to patronize a firm. 

Why do customers leave brands? They say it is because:

  • I had a bad experience with products—37% 
  • I had a bad experience with customer service—32% 
  • To support issues I feel are important in society—18%
  • Prices went up/discounts ended—17% 
  • Service was no longer fast or efficient—17%
  • I liked the experience with another brand better—15%
  • Another brand offered lower prices—11%
  • Lack of availability—10%
  • I didn’t trust them with my personal data—7%
  • Another brand offered a better loyalty program—7%
  • Friends/social media recommended other brand—2%

Shoppers prefer personalization that offers discounts and rewards. They want:  

  • Discounts/rebates on products I regularly use—48%
  • Loyalty program that has flexibility in rewards—43% 
  • Easy or fast access to products/services—22% 
  • Special access to things I like—17%
  • Remembering my preferences—14%
  • Offers based on my customer information—13%
  • Remembering personal details about me—12%
  • Employees know me and respond to my needs—12%
  • Products picked just for me—11%
  • Seamlessly switch between mobile/online/in-store—8%
  • Relationships/partnerships with other brands I like—7% 

PwC surveyed 4,000 consumers.

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