Customer loyalty is choosing one company’s products and services consistently over its competitors. Customers loyal to the company are easily swayed by price or availability. Instead, they would rather pay more and ensure the same quality service and product they know and love.

Customer loyalty results from a company consistently meeting and exceeding customer expectations. Another study by Rare Consulting says that 83% of customers said their brand loyalty stemmed from the trust. In other words, commitment is about likability and the ability to trust the product and brand. Customers who trust the companies they do business with will be more likely to purchase again.

What is Customer Loyalty Retention?

Customer loyalty and customer retention work together. Loyalty is a mindset that predisposes a customer to engage with and purchase from your company. Retention is a metric used to track customer engagement and the resulting sales.

It’s all about keeping the customers you worked so hard to acquire, to provide great experiences, and continuing to offer value. Customer retention strategies is develop to provide—and extract—more value from your existing customer base

What is the Definition of Customer Loyalty?

Customer loyalty is positively related to customer satisfaction as happy customers consistently favor the brands that meet their needs. In addition, loyal customers purchase a firm’s products or services exclusively and are unwilling to switch their preferences over a competitive firm.

Brand loyalty stems out of a firm’s consistent effort to deliver the same product, every time, at the same rate of success. In addition, organization’s give special attention to customer service, seeking to retain their existing base by increasing customer loyalty.

Often, they offer loyalty programs and customer rewards to the most loyal customers as an expression of appreciation for doing repeat business with them. In marketing, brand loyalty describes a consumer’s positive feelings towards a brand, and their dedication to repeatedly purchasing  the brand’s products and services, regardless of deficiencies, a competitors’ actions, or changes in the environment.

It can also is demonstrate with other behaviors such as positive word of mouth advocacy. Corporate brand loyalty is where an individual buys products from the same manufacturer repeatedly and without wavering, rather than from other suppliers. Loyalty implies dedication and should not be confused with habit with less-than-emotional engagement and commitment. Businesses whose financial and ethical values rely primarily on their brand loyalty use the loyalty business model.

Customer Loyalty Long-term Impact on Business

Brand loyalty in marketing consists of a consumer’s devotion, bond, and commitment to repurchase and continue to use a brand’s product or service over time, regardless of competitors’ pricing or changes in the external environment. Brand loyalty reflects a customer’s commitment to remain in a relationship for an extended period with a brand.

A critical factor in building brand loyalty is developing a connection or relationship between the consumer and the brand. This emotional relationship is creating between the consumer and the brand. This leads to a strong bond and a competitive advantage for that particular brand component. Attitudinal loyalty relates to the customer’s willingness to purchase a product or service from the brand at any reasonable cost.

Behavioral loyalty is repurchasing. Both behavioral and attitudinal components are essential. One example is that a consumer displays behavioral commitment by buying Coke when there are few alternatives and attitudinal loyalty when they will not buy an alternative brand when Coke is unavailable. The attitudinal component is psychological.

This leads to the behavioral action of repeat purchases. Attitudinal loyalty drives most loyalty behavior and ensures commitment over time, not just with one purchase. “Firms desire brand loyalty because retaining existing customers is less costly than obtaining new ones. Firms profit from having loyal customers.”


  • Brand loyalty profits firms by saving them money. Benefits associated with loyal consumers include:
  • Defense from competitors’ cutting of prices.
  • Creating barriers to entry for firms looking to enter the market.
  • Competitive edge in the market.
  • Customers were willing to pay high fees.
  • Existing customers cost much less to serve.
  • Potential new customers.

Generally speaking, brand loyalty will increase profit over time as firms do not have to spend as much time and money on maintaining relationships or marketing to existing consumers. In addition, loyal, long-term customers spend more money with a firm.


Customer loyalty indicates the extent to which customers are devoted to a company’s products or services and how substantial is their tendency to select one brand over the competition.