SAP Emarsys has released its annual Customer Loyalty Index 2024, providing a deep dive into Australian spending behaviours amidst the ongoing cost-of-living crisis. The research reveals a significant shift in brand loyalty, particularly among Gen Z consumers, with 41% abandoning brands due to boredom. Interestingly, creative marketing appears to be a key factor in attracting 40% of Gen Z consumers.

The study also highlights a broader trend of brand switching due to cost considerations, with 65% of Australians reported to have switched from a brand they were previously loyal to. Furthermore, 53% of Australians are likely to abandon brand loyalty when prices increase.

In the lead up to the festive season, only 28% of respondents are planning to make the majority of their holiday purchases during the Black Friday weekend. This suggests a potential shift in consumer behaviour, possibly driven by the current economic climate.

Loyalty programs also play a significant role in consumer behaviour, with 58% of respondents expecting loyalty points or cashback in exchange for their loyalty to a particular brand.

The research indicates that 74% of marketers surveyed agree that AI will be crucial for boosting customer engagement in 2024. Furthermore, 77% have already experienced a rise in engagement after implementing AI-powered personalisation.

CMO at SAP Emarsys, Sara Richter, said: “It’s clear that consumers today, not just Gen Z, expect more than ‘business-as-usual’—they want meaningful and memorable experiences. The key to delivering that is personalisation for every customer.“AI is the only practical solution for providing genuine one-to-one interactions at scale, across every channel, and at the right moment. Brands that embrace AI-powered personalisation are far better equipped to keep customers engaged, especially when attention spans are short, and demands are high.“By combining traditional marketing strategies with the advanced capabilities of predictive and generative AI, we’re empowering marketers to create exceptional experiences. For instance, our AI Product Finder seamlessly turns complex product data into engaging content, while our AI Subject Line Generator takes the guesswork out of crafting compelling headlines.”

The research was conducted by Opinion Matters on 2,019 Australian respondents aged 16+, collected between 12-17th June 2024. SAP Emarsys Customer Engagement is the omnichannel customer engagement platform that empowers marketers to deliver personalised, AI-driven omnichannel campaigns.