Amidst the ongoing cost-of-living crisis, consumers want good value for their money. While competitive pricing is a priority for consumers, there is also an expectation that loyalty should be acknowledged and rewarded.
A significant challenge in financial services is addressing consumer scepticism about the benefits of loyalty. Many customers think financial service providers prioritise new customers over existing ones, strengthening the idea that providers are more focused on profit than fostering long-term relationships. This view risks undermining trust, making it critical for providers to adopt fair pricing strategies and implement schemes that visibly value loyal customers.
Improving customer service offers significant potential for boosting loyalty, as over half of adults think quality customer service is the most important factor in building loyalty. By providing prompt and accessible assistance and ensuring staff are trained to resolve issues empathetically and efficiently, providers can alleviate pain points, transforming customer interactions into meaningful connections.
Loyalty is a two-way relationship between customers and providers and can mean different things to different people and different providers. Broadly speaking, loyalty represents the strength of the relationship between consumers and providers, shaped by key factors such as trust, customer satisfaction and switching behaviour. It is a mutually reinforcing dynamic where consumers seek value, reliability and fairness, while providers aim to nurture long-term connections and regular engagement.
This report was written by Stefania Apostol, Senior Financial Services Analyst at Mintel. Stefania joined the Financial Services Reports team in March 2021, having previously worked for Mintel’s MFD, Disruptor and GNPD products. In her current role, she researches and writes Mintel Reports on consumer financial services in the UK.
While consumers seeking value for money expect to be rewarded for being loyal, there is widespread scepticism about the benefits of loyalty.
Stefania Apostol
Senior Financial Services Analyst
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