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Navigating the Brand Loyalty Crisis: Insights from EMEA Consumer Research

[fa icon="calendar"] 29-Apr-2024 11:52:50 / by Iliyana Stareva

Consumer voice report by ServiceNow

In a world where brand loyalty is becoming increasingly elusive, organisations across Europe, the Middle East, and Africa (EMEA) are facing quite the challenges.

The landscape is shaped by shifting consumer preferences, economic pressures, and the relentless march of technology.

In 2023, at ServiceNow we highlighted the looming brand loyalty crisis, and now, in 2024, the situation remains dire.

However, amidst the challenges lie opportunities for those willing to adapt and innovate. Drawing on insights from a comprehensive survey that we conducted at ServiceNow together with Opinium Research, today I want to share with you the key findings and offer strategies for navigating the brand loyalty crisis in EMEA.

What's Happening With Brand Loyalty in EMEA?

The Persistence of the Brand Loyalty Crisis

Despite efforts to address the issue, brand loyalty continues to decline across the EMEA region. 78% of consumers are now less loyal to brands than they were two years ago, compared to 76% last year.

While economic factors such as the cost-of-living crisis contribute to this trend, the root cause lies deeper. Consumers are increasingly demanding exceptional experiences from brands, and failure to deliver results in disloyalty.

Understanding Changing Consumer Preferences

One of the fundamental challenges for businesses is understanding the evolving preferences of consumers, which can vary at different stages of the customer journey.

Generative AI solutions, despite initial skepticism, are being embraced by consumers, particularly for basic interactions. However, the reputation of AI remains a concern, with consumers preferring human intervention when faced with complex issues. This underscores the importance of providing multiple engagement options and striking the right balance between high-tech and high-touch.

Embracing a Digital Future for Customer Experience

The future of customer experience (CX) is undeniably digital, with consumers actively endorsing investments in innovative technology solutions. From AI-driven personalised recommendations to virtual reality experiences, consumers envision a future where technology seamlessly enhances their interactions with brands.

However, with great technological advancements come great responsibilities, particularly in data management. Consumers prioritise data security and expect organisations to utilise their data responsibly to deliver personalised experiences.

Key Strategies for Driving Customer Loyalty

In light of these insights, organisations in EMEA must adopt a strategic approach to tackle the brand loyalty crisis. Personalisation emerges as a critical factor in winning over customers, but it must be executed thoughtfully to avoid appearing formulaic.

Moreover, companies must strike the right balance between technology and human interaction, offering a seamless experience across multiple touchpoints. Smart investment in technology is essential, guided by a deep understanding of consumer needs and preferences.

The brand loyalty crisis in EMEA presents both challenges and opportunities for organisations willing to adapt to the evolving landscape.

By prioritising personalization, embracing innovative technology solutions, and striking the right balance between high-tech and high touch, businesses can navigate these turbulent times and build long-lasting relationships with customers.

As consumer expectations continue to evolve, organisations must remain agile and responsive, ensuring that every interaction contributes to a standout customer experience.

The road to customer loyalty may be challenging, but it's not impossible. With the right strategies and a customer-centric approach, organisations can thrive in an increasingly competitive marketplace, forging strong connections with consumers that endure beyond economic uncertainties and technological disruptions.

Read the full research here and check out the infographic below as well:



Topics: Brands and Business, Customer Experience

Iliyana Stareva

Written by Iliyana Stareva

Iliyana Stareva is the author of Inbound PR - the book that is transforming the PR industry. She's also a keynote speaker and a consultant in inbound and digital for fast-growing companies and agencies. Currently, Iliyana is Chief of Staff to the EMEA President at ServiceNow. Before that, she held global and EMEA-wide positions at Cisco and HubSpot. She is also certified by the PMI as a Project Management Professional (PMP)®. In her free time, you can find Iliyana writing for her blog, dancing salsa or travelling the world.

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