Consumers are five times more likely to be loyal to brands, products and services they discover through word-of-mouth than those they find using AI, claims a new report from the Data & Marketing Association (DMA).
Based on a national survey of over 500 consumers and marketers, the DMA’s Loyalty in the Age of AI report gives a net positive impact on loyalty of 56 percentage points to the former, compared to one of just 11 percentage points to the latter.
These figures are skewed by a clear generational divide in attitudes to AI- driven marketing. While younger adults are broadly receptive to AI-led brand recommendations, the over-55s say they are more likely to weaken brand loyalty than strengthen it, producing a net score of -19 percentage points.
Rachel Aldighieri, CEO of the Data and Marketing Association, said:“Human connection, in the form of word-of-mouth recommendations and reviews, still appear to be the most trusted methods to build brand loyalty. While new technologies and promotional tactics will continue to play an important role in the decisions customers and marketers make, brands cannot lose sight of the fundamentals. Trust, relevance and a clear understanding of what customers actually value remain at the heart of long-term loyalty.”
The report also highlights a disconnect between marketers and consumers. While 70% of marketers believe brand loyalty has increased, the proportion of consumers sticking to familiar brands for everyday purchases has fallen to 67% from 76% in 2024.
