# Bad interactions and unethical practices impacting brand loyalty
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-07-23
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: New research from Ello: UK consumer loyalty influenced by
Meta Description: New research from Ello shows 60% of UK consumers are impacted by bad brand interactions, with one-in-five likely to leave unethical brands. Trust, environmental
URL: https://financedigest.com/bad-interactions-and-unethical-practices-impacting-brand-loyaltyhtml

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60% of UK consumers admit bad interactions impact their loyalty to a brand and often result in them cutting ties, while one-in-five would leave a brand if they engaged in unethical practices, according to new research from Ello.

The survey of over 2,000 consumers also revealed one-quarter of consumers would leave a brand if they found out they mistreated employees (such as not paying them fairly or forcing them to work long hours). A further one-in-five admitted they want the brands they use to take an active stance on environmental issues, and half would pay a brand more for a product or service over their competitors if they trusted them/knew they were reliable.

When it comes to ranking customer loyalty across various sectors, the data confirmed consumers are least loyal to their insurance provider, when compared to how loyal they are to their telecoms, finance/banking, retail and utilities providers, with supermarkets coming out on top.

Michael [Kalli, Managing Director](https://www.financedigest.com/d2-legal-technology-appoints-jason-pugh-managing-director-drive-strategic-growth.html "D2 Legal Technology appoints Jason Pugh as managing director to drive strategic growth") at Ello, commented: “Loyalty can be fragile. We know there are multiple factors [impacting brand](https://www.financedigest.com/first-listener-wide-study-reveals-brand-impact-of-radio-livestream-and-podcasts.html "First listener-wide study reveals brand impact of Radio, Livestream, and Podcasts") loyalty and many consumers are now incredibly selective when it comes to who they shop with. While [price and customer](https://www.financedigest.com/shell-energy-to-pay-for-overcharging-price-cap-customers-ofgem.html "Shell Energy to pay for overcharging price cap customers -Ofgem") service have been key for some time, we’re now seeing factors like trust and aligning with brand values have a huge impact on how long a consumer sticks with a brand for.

“Retaining existing [customers](https://www.financedigest.com/retaining-insurance-customers-in-a-post-pandemic-environment.html "Retaining insurance customers in a post-pandemic environment") is much more cost-effective than acquiring new ones, but each and every consumer has different requirements. And when we [know that customers](https://www.financedigest.com/know-your-customer-lets-make-this-easy.html "Know Your Customer – let’s make this easy") don’t feel it pays to be loyal, achieving loyalty isn’t easy. It’s no longer a one size fits all situation and there are many factors [brands should be focusing on when developing](https://www.financedigest.com/brand-metrics-continues-on-steep-growth-trajectory-with-appointment-of-vp-business-development-in-the-us.html "Brand Metrics continues on steep growth trajectory with appointment of VP Business Development in the US") their customer retention strategy.”

[Tightening up time consuming processes in the financial industry](https://www.financedigest.com/tightening-up-time-consuming-processes-in-the-financial-industry.html "Tightening up time consuming processes in the financial industry")**On the sectors it pays to be loyal to, this is how various industries rank according to consumers:**

01. Retail (supermarket)
02. [Mobile provider](https://www.financedigest.com/dash-kicks-off-2018-with-three-business-partnerships-teaming-up-with-crypto-payments-processor-gocoin-leading-adtech-firm-strike-social-and-mobile-recharge-provider-piiko.html "Dash Kicks Off 2018 With Three Business Partnerships, Teaming Up With Crypto Payments Processor GoCoin, Leading Adtech Firm Strike Social, and Mobile Recharge Provider Piiko")
03. Food service and restaurants
04. Finance (banking)
05. Hotels and hospitality
06. Travel (airlines, trains)
07. Utilities (gas and electricity supply)
08. Insurance (home, car, life/health)
09. Telecoms (landline, at home broadband)
10. Media ( [streaming services](https://www.financedigest.com/how-can-stream-processing-act-as-a-catalyst-for-innovation-in-financial-services.html "How Can Stream Processing Act As A Catalyst For Innovation In Financial Services?") – TV, music, entertainment etc.)
11. Retail (fashion)
12. Leisure (gyms, cinemas)

**The [research](https://www.financedigest.com/a-nation-of-toffs-research-reveals-what-brits-class-as-posh-in-2016.html "A nation of toffs: Research reveals what Brits class as ‘posh’ in 2016") also revealed:**

- The vast majority (58%) of those [surveyed deem loyalty](https://www.financedigest.com/fiserv-survey-shows-digital-services-key-to-customer-loyalty.html "Fiserv Survey Shows Digital Services Key to Customer Loyalty") to be length of membership/brand usage
- Two-thirds [say loyalty is continuing to purchase product](https://www.financedigest.com/over-half-of-britons-say-loyalty-cards-encourage-them-to-buy-a-product-niq.html "Over half of Britons say loyalty cards encourage them to buy a product – NIQ") from a brand over a long period of time (around five+ years)
- 35% would put up with a [period of poor customer service if the product](https://www.financedigest.com/innovation-at-periodic-intervals-to-upscale-the-effervescent-products-market.html "Innovation at periodic intervals to upscale the Effervescent Products Market") was good quality, compared to 27% who wouldn’t

“Supermarkets are currently the best performers when it comes to instilling [loyalty amongst their customers](https://www.financedigest.com/how-to-maintain-customer-loyalty-and-trust-in-the-face-of-a-pandemic-and-digital-competition.html "How to maintain customer loyalty and trust in the face of a pandemic and digital competition"). There is however still room for improvement [across all sectors](https://www.financedigest.com/board-report-highlights-complex-decision-making-process-across-banking-and-finance-sector.html "Board Report Highlights Complex Decision-Making Process Across Banking and Finance sector").

“There are various factors influencing brand loyalty but, above all, ensuring a customer-centric approach is essential for [increasing rates](https://www.financedigest.com/rci-bank-increases-easy-access-interest-rate-to-1-02.html "Rci Bank Increases Easy Access Interest Rate To 1.02%") of retention,” concludes Michael.


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