Research Topics:

Brand Loyalty Studies | Customer Loyalty

Content Type:

Glossary

Customer Loyalty Definition

The behavior customers exhibit when they make frequent, repeat purchases of a brand.

Customer loyalty is the degree of commitment or attachment that customers exhibit toward a particular brand, product or service when repeating their purchase over its competitors. Factors like positive experiences, trust, perceived value and emotional connections are present in developing loyalty in purchases. Customer loyalty directly influences business success, meaning it is more cost-effective for companies to retain existing customers than to seek new ones. Satisfied and loyal customers are vital target markets because they contribute long-term revenue streams, enhanced brand reputation and positive feedback for product and service improvements.

Who relies on customer loyalty?

Businesses and organizations of all sizes and industries rely on customer loyalty because they recognize the value of retaining existing customers and fostering their loyalty to drive sustainable revenue and growth. Insights collected through marketing research are key in loyalty retention.

Why should I care about customer loyalty?

Customer loyalty is essential for companies because consistent customers usually spend more, are less impacted by price changes and can become fans of the brands who positively impact word-of-mouth marketing. Companies and brands with high customer loyalty tend to have a more stable and profitable customer base.