UK retailers miss key loyalty drivers, study finds

Quickfire Digital has published research showing a gap between what UK retailers prioritise to build customer loyalty and what consumers say matters most. The study found that 96% of UK consumers are open to being loyal to a brand.

Comparing responses from UK consumers and eCommerce retailers, the research identified several areas where retailer investment plans do not match shopper expectations. Delivery emerged as the clearest example: 47% of consumers said fast, reliable delivery encourages loyalty, while only 19% of retailers said they planned to prioritise it.

Returns showed a similar mismatch. Nearly three in 10 consumers, or 29%, said free returns would help build loyalty, but only 9% of retailers said returns engagement would be a priority over the next 12 months.

Retailers were more focused on other areas that ranked lower for consumers. Competitive pricing was named as a priority by 39% of retailers, while 14% highlighted community building and 8% pointed to personalisation.

Consumer responses suggested the basics of the shopping experience still carry more weight. Alongside delivery, 31% said good-quality products would encourage loyalty, placing product quality ahead of loyalty or rewards programmes, cited by 16% of respondents.

Community building produced the widest disparity in the findings. While 14% of retailers said it was a priority, just 1% of consumers said it was important in building loyalty to a brand.

Misaligned spending

The figures suggest some retailers may be directing money and management attention towards initiatives they believe will strengthen customer relationships, while spending less on practical parts of the customer journey that shoppers notice more directly.

Retailer responses also pointed to existing opportunities through established channels. Website user experience and email were identified as the strongest current sources of engagement, suggesting merchants already have ways to improve customer experience without relying solely on formal loyalty schemes.

The study was based on separate surveys of 2,017 UK adults and 206 eCommerce retailers with at least 10 employees. Both were conducted by Research Without Barriers.

For retailers facing pressure on margins and customer acquisition costs, the findings highlight a familiar tension between investment in visible brand or marketing initiatives and spending on operations such as fulfilment and returns. The data suggests shoppers may be more likely to reward consistency and convenience than broader brand-building efforts.

That could affect how eCommerce businesses allocate budgets across logistics, merchandising, pricing and customer retention. If retailers place too much emphasis on discounts or brand communities, they may miss the factors consumers say most influence repeat purchasing behaviour.

Martin Harper, Co-founder of Quickfire Digital, said the results showed consumers were not resistant to loyalty in principle but were selective about what earns it.

"There's a clear opportunity for retailers here, mainly because consumers aren't actually rejecting the idea of loyalty; in fact, almost all are open to it. The question is: what do retailers need to do to earn that loyalty?" said Martin Harper, Co-founder of Quickfire Digital.

He said the data pointed to an overemphasis on retailer assumptions rather than customer priorities.

"Our data clearly shows there's still too much focus on the things retailers think will create loyalty, rather than the experiences consumers actually value. A rewards programme might give a customer a reason to come back, but if delivery is unreliable or returning an item is difficult, that relationship will be tested very quickly," Harper said.

Harper said the basic elements of eCommerce still set the terms for longer-term customer relationships.

"Retailers don't necessarily need to choose between long-term loyalty and a good customer experience. The basics are what create the conditions for loyalty in the first place: fast delivery, quality products and straightforward returns. None of these are particularly new ideas, but they remain powerful because they directly affect how customers experience a brand," Harper said.