Cost continues to have a huge impact on customers, with 65% of Australian consumers saying they will switch product when a cheaper option becomes available.
This is based on an Emarsys research that asked consumers what influences their purchases.
In addition, more than half of consumers (51%) cited consistently low prices as the main reason for being loyal to a particular retailer.
However, the most popular reason for brand loyalty was a wide range of products (60%), followed by regular discounts, loyalty points and incentives.
"Incentivated loyalty exists and can get customers to shop regularly while viewing themselves as brand advocates," said Adam Ioakim, managing director, APAC at Emarsys.
“It is no longer enough to have a quality product or experience. Brands also have to work hard to offer attractive prices and valuable offers. "
Emotional customer loyalty
Emotional connections to a brand with strong social and ethical values are also important.
The study shows that 23% and 21% of consumers respectively cite these as the main reasons for brand loyalty.
"Compared to other generations, Millennials and Generation Z as a cohort are much more influenced by emotional drivers when it comes to loyalty," says Ioakim.
"They prefer a personalized, human connection and shared social values, and when building loyalty, they keep these almost the same as experience."
More than a quarter of consumers said there are some brands that they regularly buy from despite disagreeing with their ethics. The Emarsys team says this begs the question; are comfort and price more important than brand values?
"Consumers can be tacitly loyal without considering themselves brand ambassadors with competitive pricing, next-day delivery, or a wide range of products."