Customer Loyalty Or Brand Loyalty: What’s Better For Customer Retention And Repurchase Rate?

You are here because you wish to improve your company’s retention and repurchase rate. You surely don’t want to feel sorry someday if we don’t make an effort. Perhaps, you have a little bit of understanding of customer loyalty, brand loyalty, and customer loyalty program as well.

Now, here’s a detailed look at the three factors to clarify your doubts

What’s customer loyalty?

Customer loyalty can be defined as the shopper’s keenness to continuously interact with or make purchases from a selected firm. Such buyers make repeat purchases as they associate the company with their favorable experiences.

It’s clear that customer loyalty and profits go hand in hand. However, only selected companies have managed to achieve a measurable, meaningful percentage of customer loyalty.

Customer loyalty means a better retention rate

Loyal shoppers do not show interest in finding alternate suppliers. Your competitors won’t be able to lure them without an intense fight. Thus, the churn rate or retention percentage remains under control.

The link between customer loyalty and repurchase rate

Estimates suggest most companies have 20 percent loyal customers responsible for 80 percent of the firm’s revenue. Compared to new customers, your brand’s loyal consumers spend 67 percent more.

You might wonder, why do loyal customers keep on coming back?

There can be several reasons behind the buying behavior besides good experience. Perhaps, they feel inclined to try your newest product or service. They are habituated to using your product and can’t live without it.

Whatever the reason may be, they bring repeat business. Thus, companies need to take every step to retain such buyers. And this is where customer loyalty programs come into the picture.

What is brand loyalty?

Brand loyalty is a customer’s positive association with the brand or product. Shoppers who are loyal to the product or brand cannot be lured away by competitors. No matter how hard they try with their deep pockets.

Customers start relating themselves to the brand. They won’t give significance to the price factor or incentives while making purchases. Loyal shoppers simply don’t show interest in experimenting with another brand.

Brand loyalty and repurchase rates

Market research firm, Motista, suggests the lifetime value of brand-loyal customers is significantly higher than usual shoppers. Addressing customer emotions can prove to be the most effective strategy for customer retention.

Shoppers who are loyal to a brand often like to try other products from the same company.

Remember, praise and recommendations from your loyal consumers will help you acquire new shoppers at a significantly lower cost.

Brand loyalty and retention

Shoppers who resonate with your brand will surely come back and buy more. Such loyal followers drive your sales further and ensure recurring revenue for the firm.

Advertising with specific characters and compelling stories can help in fostering emotional connection.

  1. Nike’s campaigns consist of compelling stories that form an emotional connection.
  2. Apple uses innovation to offer a rewarding experience with cutting-edge technology to consumers.
  3. Reebok provides wellness and training programs along with VIP experiences to consumers.
Are you feeling confused about the thin line between consumer loyalty and brand loyalty?

Here, let us make things easy for you.

Customer perception plays a crucial role in brand loyalty. On the other hand, customer loyalty is about spending. You can create customer loyalty with rewards programs, discounts, and lower pricing. But brand loyalty is about trust and quality.

Customer loyalty can fade away with time or even if the shopper gets a better counteroffer from another brand. Both brand and customer loyalty result in a higher return on investment. Both take time to develop.

Much research work has highlighted that loyalty programs can influence buying decisions. A whopping 70 percent of shoppers prefer recommending a brand that offers quality loyalty programs.

There you go. Put simply, customer loyalty programs can improve both.

Mobile-minded audiences appreciate digital rewards

All loyalty programs work on a decades-old strategy. But, the dynamics of these initiatives keep on changing periodically as per the taste of audiences.

These days, most shoppers use digital wallets for making purchases. Then, why not choose a mobile-based rewards system to resonate with such an audience?

Digital loyalty management platforms can analyze customer behavior, purchase history, and how they react to various offers.

Some shoppers prefer gift cards, cashback, discounts, while others may appreciate free door-step delivery for all orders. Seeking feedback on rewards and incentives via loyalty program apps can help companies offer customized benefits.

Businesses get access to rich data shared by consumers. On the other hand, customers use the app for checking accumulated points and rewards. Brands can also give them the option to encash their earned rewards 24/7.


Need a tried and tested strategy to retain loyal consumers? Build a customer loyalty program today. It’s a fool-proof way to identify and maintain your loyal customers. Investing in such an initiative can result in improved customer satisfaction, positive reviews, and more referrals. Why wait when you have experts willing to work for you? LoyaltyXpert’s team can guide you in setting the best loyalty management solution. Feel free to contact us; let us schedule a demo for you today.