- 2 Customer satisfaction scores drop to pre-Covid levels
- 3 Over one in four UK groceries bought on promotion
- 4 Most marketers wouldn’t accept a job that doesn’t offer hybrid working
- 5 Nearly two-thirds of British consumers believe sustainable companies will fare better commercially
- 6 Brands to spend record £9.5bn on Christmas advertising
Customer satisfaction scores drop to pre-Covid levels
Customer satisfaction scores have declined to pre-Covid levels, dropping by 3.8% in the last year, according to research from KPMG.
The study by KPMG asked 13,000 UK consumers for their views on 376 brands as part of the research. Almost two-thirds (64%) of those brands saw their customer experience scores across each area decline compared to last year.
First Direct came out on top of the customer satisfaction rankings, followed by Lush and American Express. John Lewis and Partners and Nationwide rounded out the top five. First Direct has placed in the top three of the index for 12 of the last 13 years, while all of the top five have all been in the top 10 at least once in the last three years.
The research also finds that early adoption of AI is helping to boost customer experience scores. Financial services brands are most likely to be early adopters of generative AI, in areas such as content generators and language translators.
Over one in four UK groceries bought on promotion
Over a quarter (28%) of British shopping baskets are now made up of promotional purchases or discounted items, finds research from Retail Insight.
This figure is even higher among millennials (those aged 27 to 42), with over a third of this group’s shopping baskets made up of discounted goods.
Price sensitivity among shoppers is high, with over eight in 10 (82%) attempting to reduce their food bills. In this environment, shoppers are particularly looking for promotions in the fresh meat category, with 30% of shoppers saying they are more likely to buy this on promotion.
The effects of inflation has also reduced brand loyalty, with 74% of those surveyed saying they have stopped buying some of their favourite branded products because the price is too high. Indeed, over seven in 10 (72%) say they now opt for supermarket own-label unless the brand is on offer.
Source: Retail Insight
Most marketers wouldn’t accept a job that doesn’t offer hybrid working
Almost three-quarters (73%) of marketers say they would not consider accepting a job that doesn’t offer hybrid working, according to recruitment company Hays.
Marketers are much more likely to work in a hybrid way versus the general working population. Almost two-thirds of marketers work in a hybrid way, versus 39% of all professionals. Just 10% of marketers work fully in an office.
Across all professionals, 43% report they now work fully in an office.
For many marketers, the ability to work at home as well as in the office ranks above pay in terms of priorities. Over four in 10 (42%) marketing professionals say they would be prepared to accept a lower salary for a role that is fully remote.
Marketing organisations are also shifting how their teams are set up in response to the continued trend towards hybrid working. Almost eight in 10 (77%) organisations hiring marketing professionals offer hybrid working to their staff.
Among businesses recruiting marketers, 78% anticipate their hybrid working arrangements for staff will remain the same.
Nearly two-thirds of British consumers believe sustainable companies will fare better commercially
Over three-fifths (61%) of British consumers believe that sustainable companies will outperform those that are not sustainable in the future, finds research from digital transformation consultancy Publicis Sapient.
This puts British consumers ahead of the global average of 54%. Additionally, more than half (53%) of people in the UK say they are more likely to support brands that invest in renewable energy sources and social and environmental activism.
British consumers are ahead of the global average in terms of changing their habits to become more sustainable. Over two-fifths (44%) of UK consumers report having increased how many sustainable products they buy, versus 37% globally.
Most consumers (52%) agree that they trust businesses are transparent about their sourcing and production methods. However, over a third were noncommittal, with 36% saying they feel ‘neutral’.
Source: Publicis Sapient
Brands to spend record £9.5bn on Christmas advertising
Advertisers are expected to spend a record £9.5bn this Christmas season, according to data from the Advertising Association and Warc, a 4.8% increase on the same period last year largely attributed in part to inflation.
Brands have upped the value of their investment in both emerging and traditional media. Broadcast video on demand, for example, is set to increase by 20.2%, while out-of-home will grow by 10.3%, and online display by 9.1%.
Television remains a a draw, with £1.5bn predicted to be spent on it in the final quarter, a slight dip of 0.2% down on its 2022 total.
The Christmas ad season is set to be an even bigger boost to the advertising industry than usual. Performance in the fourth quarter will add £430m to 2023’s total market value – for the first nine months that figure was £486m, meaning the festive season is accounting for 47% of all growth this year.
Source: Advertising Association and Warc.