UK Brand loyalty remains in crisis according to ServiceNow research
- 67% of UK consumers say they are less loyal to brands now than they were 2 years ago, compared to 58% last year
- 70% of consumers say sustainability is an important purchase factor, but buying the cheapest option is the core reason consumers are less loyal
- Two‑fifths (40%) of consumers don’t want to deal purely with AI to protect jobs from being replaced, suggesting they may be at odds with brands who choose complete automation
24 April, London ‑ ServiceNow, the leading digital workflow company making the world work better for everyone, has published the ServiceNow Consumer Voice Report 2024: Tackling the brand loyalty crisis. The annual report highlights that 67% of UK consumers are less loyal to brands now than they were 2 years ago. It also shows that over a third (33%) of UK consumers now prioritise the cheapest option over brand loyalty.
With price point overriding such loyalties or sustainability credentials, the report also underscores how a "race to the bottom" mindset is unsustainable. While cost of living pressures and shifting customer expectations are primary reasons for declining brand loyalty, it suggests that, to survive, businesses must now adopt AI and innovative technologies to blend traditional and tech‑forward customer interactions.
Based on a survey of 2000 UK adults, the findings demonstrate significant shifts in customer perceptions and behaviours over the past two years and their impact on loyalty, including:
- Two‑fifths (39%) of Brits say they are having to spend more than they did two years ago, withrising costs the predominant reason, claim 77%.
- Although consumers want to see the introduction of new technologies, 64% would never want to see entirely AI‑driven customer service.
- In 2024, 93% of UK customers value prompt customer service response times. Two fifths (39%) expect the shift to 24/7 customer service in the next 12 months, and the overwhelming majority wanting 24/7 support in this decade.
“Looking at the latest developments from our research, we can clearly see that in the past year consumers have become more tech‑savvy and aware than ever before. This means that today, businesses are facing a higher demand for personalised, faster, and hyper convenient experiences. The good news is that companies can now meet all of those expectations by investing in AI‑driven technology, as well as keep training their agents,” said Simon Morris, VP Solution Consulting at ServiceNow. “With consumers having a more positive sentiment and a better understanding of how technology plays in their favour, there is a huge opportunity for businesses to capitalise on the momentum and win their customers back.”
The new AI: Authentic Intelligence
Mistrust (36%) and security concerns (12%) are key factors pushing customers away from AI. And while Integrating tech means a more seamless service, 34% of consumers across the UK still don't trust AI alone, so human touch remains key. Two fifths (40%) don’t want to deal purely with AI in order to protect jobs from being replaced, suggesting they would judge brands who did.
Despite this scepticism, customers are increasingly more receptive to using AI in customer service. With almost nine out of ten (87%) seeking quick, real‑time support, there is a clear opportunity for AI‑driven technology like chatbots.
Although there is still scepticism, consumers are increasingly more receptive to using AI in customer service, providing the human element is not lost. AI should not ‑ and cannot ‑ replace human interaction entirely. 61% across the UK still recognise the irreplaceable value of in‑person customer service chats (across email, phone & live chat).
The customer experience of the ‘future’ is tech‑first… and sooner than you think
Consumers are highly receptive to future technology innovations such as AR and self‑replacing smart products. By 2030, 61% of customers expect the integration of VR for 'try before you buy' experiences, as well as the standard practice of smart products being instantly and autonomously replaced any time they are damaged. By 2050 these numbers jump to 71% and 72%, respectively.
These trends highlight that technology is not only a solid investment, but the adoption of innovative technologies in CX is welcomed and expected soon. For the brands that can move swiftly to seamlessly integrate these services, delighted customers are set to follow.
Although 64% would never want to see customer service entirely driven by AI, UK consumers do want to see the introduction of new technologies. In the UK, 21% already prefer chatbots for basic information, while 38% opt for human support for complex issues.
In fact, consumers are highly receptive to future technology innovations such as AR and self‑replacing smart products. By 2030, 61% of customers expect the integration of VR for 'try before you buy' experiences, as well as the standard practice of smart products being instantly and autonomously replaced when they are damaged. By 2050 these numbers jump to 71% and 72%, respectively.
A great example of this is Royal College of Arts: "Improving the quality of engagement with our students is an ongoing objective for us. We've found that you can have great people, but without equipping them with robust technology, data and analytics, you can't enable them to improve overall service”, says James King, Head of IT at Royal College of Arts.
Our strategy around technology has been about getting the basics right, therefore. Using and managing customer data correctly, alongside the right combination of the human factor and technology has been part of the journey for us, and the research shows we are on the right path towards finding that balance."
Today’s customers demand round‑the‑clock CX
One of the key requirements of today’s consumer is that help should be available round the clock. In good news for businesses, AI is helping to bring this otherwise expensive ask closer to attainable reality.
Two fifths (39%) expect the shift to 24/7 CX in the next 12 months, and the overwhelming majority want 24/7 support in this decade. This shows the opportunity to invest in rapid, intelligent technologies to propel customer experience into the future.
With the proliferation of social media, customers are also expecting rapid responses. However, despite its fast pace and ready availability, nearly half (48%) wouldn't use social media for customer experience. This suggests businesses needing to demonstrate ROI must redeploy social media budgets to meet changing CX demands.
Return to Analogue: The future of CX is high tech meets high touch
UK consumers are demanding a variety of different customer service channels, including chatbots, phone calls, emails and more, with 85% seeking multiple options. This underscores the importance of omnichannel customer service to meet their needs effectively.
The report therefore suggests that businesses must now adopt a hybrid customer experience strategy, blending automated and human‑powered services to enhance the customer experience, because neither approach alone meets current consumer expectations. The future of CX also appears to involve deploying automation to free up agents for personalised support.
“According to this report, 67% of UK consumers are less loyal to brands now than they were two years ago,” added Jo Causon, CEO, The Institute of Customer Service. “This coincides with our UK Customer Satisfaction Index (UKCSI), showing a record fall in satisfaction in January 2024. The UKCSI now stands at its lowest point since 2015, and nearly 41% of customers who are dissatisfied with a business say they avoid using it again ‑ suggesting that declining service levels may be causing customers to vote with their feet.”
“Whilst ServiceNow’s report also suggests cost‑of‑living challenges are prompting some customers to switch to lower‑cost options that don’t offer a consistent service experience, businesses are unlikely to retain new customers who may initially be tempted to switch supplier in an effort to save money. Our own research also shows that 31% of customers are prepared to pay more for better service versus opting for the low‑price no‑frills option.”
Download the full ServiceNow Consumer Voice Report 2024: Tackling the brand loyalty crisis here.
Methodology
The study was commissioned by ServiceNow, the leading digital workflow company, and conducted by Opinium in January 2025. The sample consisted of 15,000 Nat Rep adults in UK, ROI, France, Spain, Germany, Italy, UAE, Sweden, Switzerland and Netherlands.
About ServiceNow
ServiceNow (NYSE: NOW) makes the world work better for everyone. Our cloud‑based platform and solutions help digitize and unify organizations so that they can find smarter, faster, better ways to make workflow ‑ So employees and customers can be more connected, more innovative, and more agile. And we can all create the future we imagine. The world works with ServiceNow. For more information, visit: www.servicenow.com.
Media contacts
Maria Di Martino
Director UK&I Corporate Communications
press@servicenow.com