Building customer loyalty is a key goal on brands and retailers’ agendas, but according to new research from SAP Emarsys, 83 percent of consumers feel undervalued by the brands they remain loyal to — even questioning that loyalty.
SAP Emarsys’ new customer loyalty index report, which surveyed more than 4,000 U.S. consumers, aims to provide retailers with a better understanding of the motivations for brand loyalty and the disconnect between brands and consumers feeling undervalued. The authors of the report said that the “disconnect is a wake-up call for brands, as customer acquisition costs continue to rise.” And with the majority of consumers feeling undervalued by brands they remain loyal to, there is an opportunity for retailers to develop relationships.
Kristin Howell, global vice president, retail solution management, at SAP, told WWD that the difference between consumer loyalty and feeling valued “lies with the emotional connection shoppers develop when they feel understood and appreciated beyond just a transaction.”
The report calls out the fashion industry specifically, where the company’s research finds “53 percent of consumers are loyal to a single brand” — higher than any other sector.
“This high level of loyalty means it is essential for fashion brands to solidify long-term relationships with their customers and turn loyalty into a key driver of growth and customer lifetime value,” said Howell. “However, brands must go beyond traditional tactics and focus on creating meaningful, personalized experiences.”
Looking across all consumers who did not report feeling valued, many said that they wanted more personalized and unique offerings from brands. Consumers’ top motivations for brand loyalty are long-standing reputations (43 percent), brand consistency (28 percent) and iconic branding (17 percent).
“This exposes a significant gap between customer expectations and marketing tactics, emphasizing the need for more personalized engagement,” said Howell. “Specifically, our data also found nearly half of U.S. consumers (43 percent) find the overuse of push notifications from brands’ apps ‘annoying’.”
To address the disconnect, she said retailers should move beyond traditional strategies and focus on creating “personalized experiences to foster a deeper sense of trust.” And Howell added that brands integrating AI into loyalty management will enhance customer value and foster lasting loyalty.
“Consumers have more choices now than ever before, making it a must-have for fashion brands to differentiate themselves through AI-powered tactics that align their brand to customer values,” said Howell. “Personalized one-on-one communication across an ever-increasing range of shopping channels empowers brands to build a true value exchange where customers feel valued at every touchpoint. Customized rewards, for example, not only delight consumers but also provide brands with real-time insights to better manage supply chains and respond to surging demand.”
Personalization, she said, is crucial to fostering ongoing customer engagement and ensuring customers feel valued. Tools like those from SAP aim to equip retailers with tools to earn customer loyalty through effective personalization.
“By leveraging AI, brands can deliver hyper-personalized communications and offers that adapt to real-time customer behavior,” said Howell. “Personalization can take different forms across the shopping experience. It starts with understanding needs at the point of engagement.”
To build relationships with customers, Howell advised brands to ensure messaging at every customer touchpoint is relevant, impactful and meaningful. As an example, she explained that product recommendations can be personalized with an offer or price point that creates value and provides fulfillment options that provide convenience when a shopper needs it.
“Another way fashion brands can provide value is to bridge in-store and online experiences,” said Howell. “A simple wish list or waitlist program for out-of-stock items not only offers customers a valuable service but also enables brands to collect email addresses in return for VIP treatment. This exchange creates a win-win scenario: customers feel appreciated while the brand gains actionable insights to improve future engagement.”
Moreover, she applauded the L.A.-based fashion brand Reformation for leveraging more localized sourcing and production, which provides faster fulfillment and fresher assortments to meet consumer needs. This strategy makes customers feel valued through their commitment to sustainability and style. SAP Emarsys’ research found the immense importance of sustainable fashion with ethical loyalty increasing 18 percent in the past year.
Notably, SAP will release a new loyalty management solution in the second half of 2025, offering retailers tools like loyalty profiles and omnichannel promotion planning. These solutions will help to further address the growing need for personalization in customer engagement.
