Australia has seen its first recorded decline in “True Loyalty,” signalling a shift away from traditional lifelong brand devotion, according to the fifth annual Customer Loyalty Index (CLI) by SAP Emarsys.
Replacing long-term brand devotion is a new phenomenon called “Trend Loyalty,” which is a fast-moving, emotionally driven form of allegiance shaped by viral moments rather than enduring trust.
The Index reveals that 14 per cent of Australians are more likely to trust a product if it goes viral, while 13 per cent place greater trust in TikTok and other social media trends than in advertisements or brand websites.
Additionally, 16 per cent report purchasing products promoted by influencers, and 51 per cent say their loyalty lies with products rather than brands.
This trend is especially evident among younger consumers, with 36 per cent of Gen Z shoppers admitting to purchasing a product solely because it was trending on social media, nearly twice the rate of the general population.
An equal share expressed loyalty to brands that trend, whereas 26 per cent report reduced loyalty if a trending product fails to meet expectations.
“Trend Loyalty is simultaneously a risk and an opportunity for brands. It’s driven by hype, not history,” said Sara Richter, CMO at SAP Emarsys.
“If marketers want to turn the emotional rush of a trending moment into something more meaningful and lasting, they need to move fast – and understand each customer on a personal level. What sparked their interest? What emotional need did the trend tap into?”
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