Asda is leading the way in terms of customer retention while Marks & Spencer has shown remarkable growth in the sector despite a tumultuous 10 year period, a new study has shown.
M&S has been dubbed the most improved of the UK’s supermarkets for customer loyalty over the past decade, while Morrisons has struggled, according to TNS.
Asda led the way in the study, but M&S beat rivals Waitrose despite a decade that involved two attempted takeovers by Sir Philip Green and a huge drop in customer loyalty in 2000.
Sainsbury’s, Aldi, Tesco, Morrisons and Aldi were next in the research into shopper retention based on how likely shoppers are to return to a store and recommend it to family and friend. The Co-operative was excluded as its takeover and conversion of Somerfield stores is yet ot be complete.
Gemma McIntosh, of TNS, told The Telegraph: “These [loyalty] figures show M&S is a real success story. Back in 2000, sales were falling and credibility was low. But the effort to modernise the brand has been hugely successful.”
McIntosh said the retention may be attributed to the speedy modernisation of stores and brand identity, as well as M&S’s Dine in for £10 campaign.
According to the research, customer satisfaction at Morrisons and Aldi has fallen significantly since the start of the decade.
McIntosh said: “Morrisons have gone from being a northern store to a nationwide store and that happened overnight. It had a loyal customer base up north and they have diluted that emotional affinity.”
New, better-off customers tend to use Aldi for specific items, which reduces its loyalty score.
McIntosh added: “Tesco and Asda have been marketing very hard and direct on price. Sainsbury’s score may also be a hangover - perceptions don’t change as quickly as prices.”
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