Irish consumers are becoming increasingly less loyal to brands, according to a recent survey conducted by digital workflow company ServiceNow. The study, which polled 1,000 Irish people, revealed that 82% of respondents are now more inclined to search for cheaper alternatives rather than sticking to familiar brands. This shift in consumer behavior is primarily driven by a need for affordability, with nearly half of the participants citing cost as the main reason for their diminishing brand loyalty.
The survey also highlighted the impact of rising prices on consumer spending habits, with 84% of respondents disclosing that they are now spending more due to recent price increases. In response to the cost-of-living crisis, a significant number of Irish consumers are exploring new brands and services, with 23% stating that increased competition is prompting them to switch to different options.
Seeking to reduce costs, Irish customers are also showing a strong interest in personalized discounts. Around 90% of respondents emphasized the importance of tailored discounts, while 81% expressed a desire for samples and trials from various brands before making a purchase.
In terms of the employee experience, the survey found that salary is the most critical factor for 61% of Irish consumers when considering job satisfaction. Furthermore, Irish consumers stand out as particularly security-conscious, with 78% of respondents identifying data security as the most important factor when dealing with a company. This concern for data security outstrips considerations such as response times, service quality, and contact options.
Interestingly, despite the growing popularity of artificial intelligence tools, the majority of Irish consumers still prefer direct interaction with customer service representatives online. Only 10% of respondents indicated a preference for chatbots, while 37% favored email communication.
Mark Cockerill, Vice President of Legal at ServiceNow, cautioned that brands cannot compete on price alone, emphasizing the importance of additional factors beyond affordability. He suggested that good security practices and efficient customer query resolution should be prioritized alongside competitive pricing.
The survey findings shed light on the shifting landscape of brand loyalty among Irish consumers. As economic challenges persist, consumers are prioritizing affordability and exploring alternative options. It is clear that brands will need to adapt their strategies and focus on essential elements such as data security and exceptional customer service to maintain their competitive edge in the evolving Irish market.
