Amazon named as UK shoppers favourite brand – and the love is largely genuine, says study

By Paul Skeldon September 26, 2018 - 6:59 am

Amazon has been named by consumers as their standout favourite brand – and for genuine reasons, according to a study into loyalty and brands by the DMA.

Retail stalwarts Marks & Spencer, John Lewis, Sainsbury’s and Tesco are the others most mentioned, but it is Amazon that stands out, with the tech giant no longer regarded as just an online retailer, featuring across several sectors as the preferred brand – first among retail brands, second among media or entertainment, and fourth for technology companies.

However, one in three (33%) consumers also said they did not have a favourite brand or one they are most loyal to and nearly two-fifths of people in the UK (39%) feel less loyal to brands and companies than they did a year ago.

According to the DMA’s latest ‘Customer Engagement 2018 – How to win trust and loyalty’ report, conducted in partnership with Pure360 and Foresight Factory, customers claim that they feel less loyal, but this may not translate into a change in their behaviour and needs. Year-on-year the figures have remained steady with half of consumers (49%) still falling into the ‘Active Loyal’ group and around one in five (22%) as ‘Active Disloyal’ – with the remainder either loyal through habit or in certain situations.

When it comes to the top five favourite brands, consumers also report feeling genuine loyalty to those brands, rather than this simply being based on convenience or habit. This was particularly the case for John Lewis and Marks & Spencer, with 89% and 88% of consumers agreeing respectively.

Interestingly, two-thirds (67%) of people who chose Amazon as their favourite brand are loyal to them for genuine reasons – rather than convenience alone.

“Consumer trust in ‘faceless corporations’ is waning, and in its place is a growing preference for meaningful interactions with brands who are perceived as genuine, transparent and relevant. For marketers, the message remains the same: add value to your customer’s lives and stay relevant to their interests or risk losing their business altogether.”

– Komal Helyer, Marketing Director at Pure360

According to the study, loyalty is changing and the challenge for businesses is understanding what their customers really want.

“Brands must renew their focus on the most important part of their long-term success, their customers. Whether marketers decide to offer more personalised experiences, new loyalty schemes or flexible subscription models, successful brands will be those that can put the customer at the heart of everything they do.”

– Rachel Aldighieri, MD at the DMA

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