The truth about customer loyalty: KPMG report

Global network of professional firms, KPMG has released its latest KPMG International report, titled 'The truth about customer loyalty – The world's consumers reveal what keeps them coming back'. The report highlights how customers define loyalty, and what inspires loyalty among them, the paradox of personalisation, the truth about millennials, the need to reinvent loyalty programmes and finally, actionable insights for brands.

The report was produced after surveying 18,520 consumers in more than 20 countries – including 1721 Indian consumers. The survey was conducted in September and October with samples comprising Generation Z; Millennials; Generation X; Baby Boomers; and the silent generation.

Speaking about the report, Harsha Razdan, partner and head, Consumer Markets and Internet Business, KPMG India, said, “In India, brands and retailers are ready to run miles to acquire a customer. It becomes even more difficult to retain acquired consumers, unless there is a unique value proposition along with related benefits. The fact that over 55 per cent of consumers in India say they will buy from their favourite company even if it is cheaper and more convenient to buy from a rival company is further proof that loyalty endures. Loyal customers can be a reliable repeat source of revenue for retailers/brands.”

What Indians feel:

• 93 per cent of the respondents who are loyal to a particular brand are very likely to recommend the brand to friends and family, compared to the global average which stands at 86 per cent

• 84 per cent of the respondents in India believe in loyalty programmes and are more likely to buy new products offered by the company

• 47 per cent of the respondents are not likely to shift to a competitor brand even if they have had a bad experience

• 33 per cent of customers in India view loyalty programmes as crucial for making purchase decisions

What Engenders Brand Loyalty Today?

According to the report, brand loyalty doesn't just help companies with repeated business patterns. Over 86 per cent of consumers globally, from Gen Z to the silent Generations, say they would recommend a brand they loved to friends and family. In terms of earning customer loyalty, 59 per cent of the consumers surveyed globally said they are loyal to their favourite brand because of a personal connection, the corresponding figure for India stands at 74 per cent. 75 per cent consumers globally said their loyalty was due to product quality, compared to 74 per cent in India, who said their loyalty was driven by value for money.

Meanwhile, only 37 per cent of respondents globally see loyalty programmes as an effective way to gain loyalty. 55 per cent of consumers who are enrolled in loyalty programmes use them infrequently - a few times a month or lesser.

Here is the full report: