A new global study by UserTesting reveals that brand loyalty does not suffer the consequences of price hikes. On the contrary, customers seem willing to pay more to stay loyal to their favourite brands.
The research, which surveyed 4,000 consumers across the United States, Australia, and the United Kingdom, indicates that more than 60% of loyal customers would stick with their favourite brands despite price increases. On average, consumers are willing to pay up to 25% more to maintain their brand allegiance.
As inflation and rising costs weigh on consumers’ minds, brand trust has become a crucial factor in purchasing decisions. Apparently, brand confidence is increasingly connected to consumers’ risk tolerance. With more choices than ever, shoppers are gravitating towards familiar brands that have built trust over time, viewing them as safer investments—even when the price tag increases.
Nostalgia fuels loyalty, experience seals the deal
The power of nostalgia plays a significant role in today’s consumer behaviour. Over 70% of Americans, 62% of Australians, and 63% of Brits report a stronger inclination to purchase from brands tied to their childhood memories. However, it’s not just sentimentality that keeps customers coming back; the top drivers of loyalty include consistently high product quality, positive customer experiences, and long-term trust.
Interestingly, many consumers express a desire to see beloved products make a comeback. Two in three Americans (66%) are willing to pay more for discontinued items from brands they cherish, a sentiment echoed by 53% of Australians and 58% of Brits. Retro products like iPods, Gameboys, Crystal Pepsi, and Sega consoles are at the top of consumers’ wish lists, with shoppers indicating they would pay an average of 27% more for these nostalgic treasures.
Trust eases concerns about rising prices
More than six in ten consumers across the U.S., Australia, and the U.K. would continue to purchase their favourite products even if prices went up. Specific sectors see even higher willingness, with brand loyalists in gaming willing to pay up to 34% more, fitness enthusiasts up to 27% more, and jewellery and watch lovers up to 33% more.
The study also outlines what drives customer loyalty. The primary reasons for sticking with a brand include consistently high product quality (60% globally), positive experiences (59%), and long-term usage (57%). However, consumers are not blind to competition; up to 44% would consider switching brands if a competitor offered a superior product or if their favourite brand failed to deliver the expected value.
The majority of Australians (81%), Brits (83%), and Americans (81%) can identify at least one brand they are loyal to. On average, loyal customers in these regions dedicate themselves to 5–6 brands, with top loyalty categories including grocery/food (54%), clothing (43%), and electronics (30%). Notably, nearly half of consumers exhibit stronger loyalty to brands with physical stores compared to those that operate solely online.