customer engagement technology
Published on : Jan 9, 2025
approaches, new research from SAP Emarsys Customer Engagement has uncovered a significant challenge for UK brands: five in six (83%) consumers feel undervalued by the brands they remain loyal to, with many questioning their loyalty altogether.
The Customer Loyalty Index, which surveyed more than 2,000 UK consumers, reveals diverse motivations for brand loyalty: 40% credit it to long-standing reputations, 30% to brand consistency and 22% to iconic branding. Yet, despite this loyalty, only 17% of consumers feel “truly valued,” leaving the majority wanting more.
This disconnect is a wake-up call for brands, as customer acquisition costs continue to rise. Research* shows it costs up to five times more to acquire a new customer than to retain an existing one.
For industries like fashion, where 52% of consumers are loyal to a single brand, this poses a threat to long-term stability.
"True loyalty is built by delivering meaningful connections and value at every stage of the customer journey," said Meghann York, Global Head of Product Marketing at SAP. "With AI, brands can identify and engage diverse audiences, meeting customers where they are with tailored, real-time experiences across every channel.
"Value can be subjective, so SAP Emarsys empowers brands to understand and deliver what value means to each customer—whether it’s exclusive access, personalised rewards, or tailored recommendations. This creates a fair value exchange, where customers are happy to share something as simple as an email or a birth date because they see clear, tangible benefits in return."
PUMA: a case study in personalised, omnichannel loyalty
PUMA’s partnership with SAP Emarsys shows how brands can address this loyalty gap. Using AI-driven insights, PUMA personalises customer journeys across its direct-to-consumer platforms, in-store experiences and third-party channels.
Through partnerships like Mention Me, PUMA identifies and nurtures loyal brand advocates. Meanwhile, its F1 sponsorship engages motorsport enthusiasts, introducing collections like the PUMA Speedcat range. By bridging content and commerce through TikTok shoppable videos, PUMA reaches younger audiences, enabling them to shop without interrupting their browsing experience.
Infused with AI, the SAP Emarsys platform empowers marketers to engage these diverse audiences, enabling PUMA to tailor offers, provide exclusive app content and drive early access to launches. According to SAP Emarsys research, app users are 47% more loyal than those on other channels, proving the importance of tailored engagement.
Join SAP Emarsys and PUMA at NRF 2025 from Jan. 12–14 in New York. Experience how PUMA’s loyalty strategies come to life with an exclusive activation at the SAP Emarsys booth, where attendees can design and personalise sneakers using insights from PUMA’s advanced CRM and loyalty data.
Methodology:
Research conducted by Opinion Matters on 2,010 UK respondents aged 16+, collected between 12-17th June 2024. Opinion Matters abides by and employs members of the Market Research Society and follows the MRS code of conduct which is based on the ESOMAR principles.?
About SAP Emarsys
SAP Emarsys is the customer engagement solution of Intelligent CX from SAP, empowering businesses to deliver personalized, AI-driven, omnichannel experiences. Built for scalability and extensibility, Intelligent CX from SAP integrates commerce, sales, service, marketing, and customer data, enabling businesses to exceed customer expectations with real-time, relevant engagement. From digitally native disruptors to global enterprises, SAP Emarsys helps bring out the best CX in every business by meeting customers where they are with the products, information, and experiences they need, exactly when and where they need them.