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Forrester predicts 25% drop in brand loyalty by 2025

Yesterday

Forrester has released its predictions for 2025 regarding B2C marketing and customer experience trends, highlighting a potential significant decline in brand loyalty due to rising prices.

According to Forrester, the decline in brand loyalty is anticipated to reach 25% next year as rising prices compel consumers to seek more cost-effective options. Despite this predicted decrease in loyalty, loyalty programs are expected to become increasingly popular, as consumers gravitate towards brands that deliver value and offer a break from relentless price comparisons.

Forrester's analysis covers diverse topics including B2C marketing, customer experience, consumer behaviour, media and advertising, and marketing agencies. These evaluations aim to equip leaders and their teams with foresight to navigate future challenges and seize emerging opportunities in 2025.

The research indicates that investment to unify data for loyalty and marketing technology stacks will triple. Presently, 78% of US B2C marketing executives admit that their marketing and loyalty technologies function in silos. By 2025, there will be a concerted effort to integrate these technologies to bolster efficiency and meet consumer demands for seamless customer experiences.

An expected consequence of technological advancements is the displacement of 100,000 frontline agents by Generative AI in the top global contact centre outsourcers. Currently, 62% of contact centres in consumer-oriented industries are outsourced, and as generative AI is set to automate straightforward issues, the need for human agents is predicted to decline.

In light of governmental pressures, Forrester predicts that TikTok will neither be banned nor forced to divest in the United States by 2025. Despite the regulatory challenges, the platform is expected to remain and continue being a robust media channel worthy of investment by marketers.

Sharyn Leaver, Chief Research Officer at Forrester, commented on the influence of generative AI, "Given genAI's potential to transform marketing and customer experience, many brands eagerly experimented with the technology in 2024," she said. "But it soon became clear that this transformation is a long game. In 2025, B2C marketing, digital, and CX leaders must build on lessons learned from this experimentation and focus on improving their data infrastructure to gain better customer insights."

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