The 2018 Brand Loyalty Index from Sodexo Engage has revealed that technology brands continue to dominate when it comes to customer loyalty and building those all-important relationships that promote future sales. Promotions and giveaways, alongside product experience, have been the main drivers in how loyal consumers are.
Maintaining their position from last year, Samsung and Apple take the top two spots in the Index, while Dyson and Sky TV also make it into the top 10 for the first time (5th and 10th respectively). Meanwhile, streaming service Netflix falls out of the top line-up altogether with rival Amazon also dropping 11 places to 17.
The research also highlights that the relationships technology brands share with customers are now showing signs of maturing. Sky TV (79%), Apple (78%), & O2 (70%) are all developing long track records with consumers. When it comes to loyalty, over half (51%) of Apple users and six in ten Dyson customers (58%), feel their loyalty is rewarded.
Rising numbers of consumers report having had a poor experience with some tech brands which is a particular concern in a sector where quality counts. In last year’s Index, more than half of those surveyed said they have never had a negative experience with these brands. Today only Samsung, which tops the Index, maintains that claim.
Chris Baldwin, Director of Consumer Promotions and Loyalty at Sodexo Engage said:
“The rise in negative experiences when it comes to tech products is hardly a surprise – consumers use these brands all the time. With about a third of consumers on their Apple or Sky products every day (31% for each), there’s much higher chance for them to encounter problems which impacts their loyalty to the product.”
It’s perhaps a reflection of this that despite their high position in the Index, technology brands have seen the biggest drop when it comes to customer loyalty. Eight out of 10 of the tech brands in the Index have seen declines of 10% or more, followed closely by Samsung and Sony who saw a decline of 9%. More than half of customers also said they would be very likely to switch if another brand was offering a promotion, prize or freebie.
Chris Baldwin, continues:
“With so much competition, maintaining a loyal stream of customers when it comes to a tech product is hard to achieve. These brands are often dependent on a continued cycle of quality items and services to keep their customers on board. In today’s world, loyalty is a tricky thing to hold onto, but promotions and giveaways are proven to be a major opportunity to keep consumers engaged with the product and help build a larger customer base.”
Founded in 1966 by Pierre Bellon, Sodexo is the global leader in services that improve Quality of Life, an essential factor in individual and organisational performance. Operating in 80 countries, we serve 75 million consumers each day through our unique combination of On-site Services, Benefits and Rewards Services and Personal and Home Services.
Part of the Benefits and Rewards division, here in the UK Sodexo Engage specialises in employee and consumer engagement, with over 50 years’ heritage in creating award-winning experiences. From growing employee culture and inspiring success in workplaces, to driving consumer engagement with brands, we give businesses the tools to create lasting change through transforming behaviours, engagement and performance in people. We believe in bringing people and business together through creativity and excellent service, with our long-standing mission of improving the quality of life of everyone we work with.
The Brand Loyalty Index surveys a representative sample of 5,000 UK adults asking for their views of the top brands from five key sectors. Answers to questions such as whether they consider the brand a favourite, if they would recommend it and whether they would consider switching contribute to the brand’s score and its position in the Index.
BRAND LOYALTY INDEX TOP TEN