Consumer Behavior

Customer loyalty tied to consistent customer service

Photo: Adobe Stock

February 14, 2024

Most consumers, three out of four, are more loyal to stores that show consistent customer service and experiences and nearly two-thirds of consumers belong to between one and five loyalty programs.

Those are top insights from Deloitte's 2024 Retail Outlook, a report examining how retailers can rebuild trust to drive loyalty and ignite profitability through experiences, personalization and trust.

Additional findings include.

• Deloitte's baseline forecast anticipates continued growth in consumer spending at a rate slightly below GDP growth due to falling inflation, low unemployment, and increasing productivity growth. While the aftermath of the pandemic led to a shift in consumer spending patterns, the forecast suggests a slower growth trajectory for durables spending relative to consumption and income over the next five years.
• Three in four consumers still feel concerned about rising prices, even as inflation moderates. Consumers consider trade-offs, try out the competition, and hunt for the best deals to maximize their budgets. One-half of retail executives expect consumers to value price over loyalty, and 64% expect consumers to purchase fewer goods. What's more, consumer spending at discount retailers increased 26% year-over-year.
• AI gets personal. As consumers hunt for deals and seek out bespoke experiences, half of retail executives are prioritizing AI-driven personalized product recommendations in 2024. But only five in 10 retail executives are confident in their company's ability to use AI effectively. While trust in a brand drops 144% for customers who know a brand is using AI, building AI with trust in mind can help quadruple market value.