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Customer Behaviour

New research from has identified key differences in the loyalty of Asda and Sainsbury’s customers, as these two supermarket heavyweights confirm the intention of a £13bn merger.

The Brand Loyalty Index, from Sodexo Exchange investigated how loyal customers really are towards brands and why, suggests future challenges for marketing, customer retention and brand strategies at both supermarkets.

Customers at Asda say the most important reason they’re loyal to the brand is because of its good value for money (50%), far outranking other factors. By comparison, Sainsburys scored at just 21% for this same loyalty driver, but this was on par with its consistent quality (22%) and its good loyalty reward scheme (22%). Asda’s results for these measures were just 12% and 1% respectively.

When asked to consider all reasons these customers are loyal to their supermarket of choice, results showed further differences:

Loyalty Driver Sainsbury’s Asda
It has a good loyalty rewards scheme 71% 7%
It is consistent quality 65% 56%
It is good value for money 61% 72%
It is high quality 59% 34%
There is always high availability 36% 42%
It offers frequent or good promotional offers 46% 48%
The brand understands my needs 29% 36%
It gives back to good causes 21% 18%
I align with the brand values 16% 19%
It is sustainable 12% 19%
I like to be seen using this brand 10% 6%
Its aspirational 4% 7%
Its eye-catching in store 8% 11%
Other, please specify: 7% 5%

The research also shows that Asda’s ‘money back guarantee’ offers have resonated well with 41% of customers, compared to just 20% of Sainsbury’s customers.

Each brand boasts exceptionally loyal customers, with both having some customers for well past the ten year mark:

Length of loyalty (years) Sainsbury’s Asda
5-10 21% 25%
11-20 21% 24%
Over 20 33% 26%

However, Sainsbury’s comes out far higher when it comes to rewarding customers, with 94% agreeing that the supermarket chain rewards their loyalty, compared to just 34% of Asda customers.

The research, conducted by Atomik, surveyed 7,000 consumers on hundreds of household name brands, including supermarkets.

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