What products and services are customers loyal to? If you asked someone their favorite grocery store or mobile carrier, clothing brand, or even airline, chances are they’d have an answer. Surely, there are also a handful of brands that you are loyal to. Brand loyalty is when customers associate positive feelings towards a brand and continue to purchase from the same brand over and over again, despite competitors offering similar products or services. It has a lot to do with how customers perceive a brand, its actions, and its values.
Speaking of boosting brand loyalty, the UK & Ireland branch of KFC completely overhauled its long-running loyalty program, turning it into an app-based, arcade-style game where members can win freebie meals. And the results? 70% would recommend KFC Rewards Arcade to friends and family. Download our case study for the full story!
What is Brand Loyalty?
Brand loyalty is a customer’s dedication toward a brand that pushes them to consistently buy their products or services, regardless of competitors, price, or convenience. It’s an important way to help retain customer loyalty and increase repurchase rates.
The nature of brand loyalty has changed dramatically over the past few years, according to the 2023 Customer Loyalty Engagement Index (CLEI). Customers’ decision process has become more emotional, trending away from rational values. The norm is now for customers to take an emotional look at values and ask: ‘How well does this brand meet my expectations?’ These customer expectations make or break brand loyalty.
Therefore, creating and maintaining brand loyalty is crucial.
- Loyal customers are more likely to make repeat purchases, helping to generate a consistent revenue stream for the brand and contributing to long-term financial success.
- Brand loyalty not only fosters repeat purchases but also strengthens the emotional connection between the customer and the brand. This emotional bond often translates into customer advocacy or in other words–word-of-mouth. This organic promotion can be more influential and cost-effective than traditional marketing strategies because trusted sources are deemed more trustworthy.
- They are often willing to pay a premium price for a brand’s products or services, which can increase the brand’s profitability. Moreover, loyal customers are more forgiving of occasional mistakes or product shortcomings, allowing the brand time to address and rectify issues without losing significant customer support. This resilience can be a key factor in sustaining the brand during challenging periods.
- In times of economic downturn or increased competition, a brand with a strong base of loyal customers is more likely to weather the storm and maintain market share.
The Difference Between Customer Loyalty and Brand Loyalty
Customer loyalty is the customer’s tendency to purchase repeatedly from a particular business or company. It is all about what you can offer customers regarding regular prices and money-saving offers. It relates to having lower prices than competitors or better discounts on specific products to encourage customers to make repeat purchases. However, this type of loyalty is often driven by short-term incentives and can be more easily influenced by a competitor’s lower prices or better deals. Because customer loyalty can fluctuate based on these factors, it may not always guarantee long-term retention. To build a more stable and enduring customer base, businesses should consider strategies that foster brand loyalty, which is rooted in a deeper emotional connection rather than just financial incentives.
On the other hand, brand loyalty refers to the customer’s emotional attachment and commitment to a particular brand. Customers believe that certain brands represent higher quality and better service than competitors—and price does not matter. Customers loyal to a brand will buy the company’s products regardless of the price. This level of commitment often leads to a stronger relationship between the brand and the customer, resulting in higher lifetime value per customer. Brand-loyal customers are also more likely to engage with the brand through various channels, participate in brand communities, and advocate for the brand within their social networks. This not only enhances the brand’s reputation but also attracts new customers who are influenced by these loyal advocates. Therefore, while customer loyalty is valuable, cultivating brand loyalty offers a more sustainable path to long-term success.
According to the Harvard Business Review, companies with high Net Promoter Scores in brand loyalty grow revenues 2.5 times faster than industry peers. The fact that brand loyalty—a long-term commitment to make repeat purchases from a particular brand—is not so heavily dependent on price makes this metric a potent driver of both profit and profitability.
The Top 11 Brands That Excel at Creating Brand Loyalty
Many brands have succeeded at building brand loyalty, but here are 11 brands that are widely considered the best:
1. Apple – Making Customers Feel Good About Themselves
It’s probably no surprise that the American multinational technology company tops our list. Apple has the highest brand loyalty, measured as the percentage of customers who have purchased a new Apple iPhone and whose previous smartphone was also an iPhone.
Ever knew that Apple has seen loyalty rates exceed 90% for the past three years?
You may be wondering how. Well, such a high retention rate is not just about the products but about how Apple makes its customers feel part of an exclusive club. The seamless integration across devices and the brand’s identity make customers loyal for life.
2. Google – Providing Convenience And Ease of Use
Surely, Google needs no introduction. The company started strong and just kept getting better, becoming the go-to search engine for the Internet in the space of a few years. Google’s ongoing success lies in its dedication to continuous innovation. The company sees innovation as part of its mission and empowers its employees to get creative. Google’s mission is to organize the world’s information and make it universally accessible and useful. The company has made it easy to discover a broad range of information from a wide variety of sources.
Did you know that Google’s initial search algorithm was called “BackRub” before it became the backbone of the world’s most powerful search engine?
The name might sound unusual, but it reflected the algorithm’s unique approach to ranking web pages based on the number and quality of links pointing to them. As Google evolved, its search engine quickly surpassed its early roots, revolutionizing how information is indexed and retrieved on the internet. This transformation marked the beginning of Google’s journey from a college project to an indispensable tool for billions of users worldwide.
Google’s consistent innovation, starting from its quirky beginnings, has created a sense of reliability. Users are loyal because they know Google constantly refines and improves, ensuring they always have the best tools at their fingertips.
3. Amazon – Hyper-Focused on Customer Satisfaction
The success of Amazon, the American multinational technology company, is due in part to its innovative business model, which allows customers to buy anything from books to furniture to electronics online.
Amazon Prime members spend an average of $1,400 per year, compared to $600 for non-members, showing the impact of Amazon’s loyalty program.
This dramatic difference underscores the power of Amazon’s strategy to enhance customer engagement through Prime. By offering benefits like fast shipping, exclusive deals, and access to streaming services, Amazon creates a compelling value proposition that goes beyond mere discounts. The convenience of swift delivery and the allure of added perks make Prime an indispensable part of many customers’ lives. Customers consistently return because Amazon makes shopping incredibly convenient and rewarding.
4. Nike – Cultivating Customer Trust
Nike has built relationships with customers by understanding their needs and preferences, and catering to them. The brand has been a trendsetter since the very beginning and always seems to find a way to make its way into customers’ lives, making the most of existing trends.
Fun fact, Nike’s iconic Air Max line has sparked such intense loyalty that it’s become a cultural phenomenon.
From its debut in 1987, when the Air Max 1 introduced the world to visible air cushioning, to the latest cutting-edge designs, the Air Max line has consistently collected sneaker enthusiasts and casual wearers alike. Each iteration of the Air Max series not only reflects advancements in technology but also emphasizes the brand’s rich heritage.
With over 30 years of Air Max releases, Nike has continually pushed boundaries with innovations like the Air Max 1, which first showcased visible air cushioning and set the stage for future designs. This relentless innovation not only keeps fans coming back but also creates a lasting connection. Nike’s ability to blend cutting-edge tech with classic style ensures that their sneakers aren’t just footwear—they’re a statement, driving deep-rooted loyalty among sneakerheads and athletes alike.
5. Patagonia – Contributing to ESG Causes
Patagonia, an American outdoor clothing retailer, is known for its commitment to environmental sustainability and ethical business practices. Supporting ESG causes is increasingly important to brands—plus, it’s one of the top three loyalty program trends for the coming years. Customers appreciate the company’s commitment to its products’ quality. Patagonia offers a lifetime warranty, which has resulted in a community of loyal shoppers who keep coming back. Because the brand focuses on customer experience, data protection, and eco-activism, customers continue to rely on Patagonia every step of the way.
Patagonia makes saving the planet as cool as its gear, thanks to its “Worn Wear” program.
This program promotes repairing and recycling, and has turned eco-conscious shoppers into die-hard fans. This cool initiative not only helps reduce waste but acquire consistent returning customers, proving that Patagonia’s commitment to the environment is a major loyalty magnet.
6. Lego – Building Loyalty Brick by Brick
Lego is a highly valued brand for children because it ignites their imagination, enabling them to construct almost anything they desire, dismantle it, and then create something entirely new. Over time, Lego evolved and is now embraced by adults as well. It is now a popular pastime for grown-ups, indicating its significant appeal beyond its primary demographic.
The word “Lego” is derived from the Danish phrase “leg godt,” which means “play well.”
Lego has been encouraging creativity for nearly 90 years. By fostering creativity and nostalgia, Lego has built a multi-generational loyalty. Customers, both young and old, keep coming back because Lego represents more than just toys—it’s a tool for endless imagination and bonding across generations.
7. Samsung – Constantly Appealing to Customers
Samsung is one of the world’s largest producers of electronic devices. The technology company boasts a diverse range of exceptional products, demonstrating its flexibility and innovative edge. Moreover, its superior global and product strategies have been pivotal in helping the company achieve greater success than many of its rivals.
Samsung spends over $14 billion annually on R&D, one of the highest in the tech industry, ensuring continuous innovation.
This massive investment in research and development shows Samsung’s commitment to staying ahead of the curve. Customers remain loyal because they know Samsung is always pushing the boundaries to deliver the latest and greatest in technology.
8. Adidas – Keeping Customers in Mind
Adidas is known for its distinctive and fashionable designs, which appeal to customers who prioritize style and trends. The brand devotes equal attention to innovation and meeting customer needs, investing significant effort in researching and developing new footwear technologies. One notable example of this commitment is Boost technology, which was introduced in the Y3 series. This technology revolutionized the footwear industry.
Did you know that Adidas’s first Yeezy sneaker, the Yeezy Boost 750, sold out in under 10 minutes?
Did you know that Adidas’s first Yeezy sneaker, the Yeezy Boost 750, sold out in under 10 minutes?
It was more than a sneaker drop—it was a game-changer. The hype stemmed from Adidas’s collaboration with Kanye West, whose influence in fashion and music turned these limited-edition sneakers into must-have items. By teaming up with high-profile celebrities and offering exclusive releases, Adidas has built intense brand loyalty, making each new drop an eagerly awaited event for fans.
9. Starbucks – Creating a Unique Relationship With Customers
Starbucks’ popularity can be attributed to the warm and inviting atmosphere the brand has created for customers to savor its beverages. Although priced higher than many alternatives, Starbucks’ drinks represent an accessible indulgence from a highly esteemed brand. The company’s strategic use of digital technology, limited edition beverages, and mobile applications have also contributed to its appeal.
Starbucks’ Rewards program has over 28 million active members in the U.S., making it one of the largest loyalty programs in the world.
This huge membership shows how Starbucks nails personalized experiences. People stick around because they feel seen and rewarded, turning their coffee runs into something way more meaningful and fun.
10. Sephora – Beauty for Everyone, Everywhere
Customers are increasingly demanding customization in their shopping experience—especially if they’re shelling out for luxuries like makeup. Sephora understands this demand and delivers it to customers through product samples, interactive displays, makeup demonstrations, and other initiatives that make shopping for beauty products more enjoyable. Sephora’s personalized approach also extends to its online shopping platform, which has been a significant factor in maintaining customer loyalty and contributing to its success.
Sephora’s “Color iQ” technology scans skin tones to match customers with their perfect foundation shade, a revolutionary step in personalized beauty.
By offering highly personalized shopping experiences like Color iQ, Sephora ensures that customers feel understood and catered to, which deepens their emotional connection and loyalty to the brand–very mindful, very demure.
11. Coca-Cola – Creating a Shareable Experience
Coca-Cola has managed to connect with customers in all parts of the world, becoming one of the largest leading manufacturers and distributors. The secret of the brand’s success lies in the fact that the company focuses on the connection between happiness and wellness. Every year, Coca-Cola has played a part in happy occasions around the globe, including Ramadan, Eid, Christmas, and events like festivals, connecting with each of its customers.
Coca-Cola’s “Share a Coke” campaign, which personalized bottles with people’s names, resulted in a 2% increase in U.S. sales, the first increase in a decade.
This campaign cleverly tapped into personal identity and social sharing, making the brand feel more personal and connected to everyday moments. This personalization strategy rekindled loyalty in a market where choices are abundant.
Brand Loyalty’s Long-Term Impact on Business
A critical factor in building brand loyalty is developing a connection or relationship between the customer and the brand. Creating an emotional relationship leads to a strong bond and a competitive advantage for that particular brand. The goal of building brand loyalty is to create long-term ambassadors that support your brand. After all, loyal customers are more likely to recommend you to their friends, support future launches and talk about your brand on social media.
If you’re interested, we’re always ready to showcase our sophisticated loyalty solutions that help you increase brand loyalty, so feel free to book a demo or send us your RFP.
And don’t forget to download our case study on how KFC’s loyalty program has been turned into a thrilling arcade game — after all, gamification is a great way to capture the hearts and minds of the modern audience.
Barbara is a Loyalty Program Specialist at Antavo and a Certified Loyalty Marketing Professional - CLMP. She is also a writing expert with several years of experience in marketing and also in the information technology industry. In her free time she likes traveling the world, reading crime stories, and doing crossword puzzles.
