What Is Brand Loyalty?

Brand loyalty occurs when customers prefer to buy a specific brand of item without considering if better items are available. It’s driven by positive associations with the brand, product enjoyment, reasonable pricing, and emotional satisfaction with each purchase.

The importance of brand loyalty

Brand loyalty is essential for increasing sales, retaining customers, and justifying premium pricing. According to the 2024 Edelman Trust Barometer Special Report, 59 percent of consumers indicated trust in brands to successfully introduce new innovations [1]. Because this number is below the trust threshold of 60 percent, it’s more important than ever for brands to work on increasing loyalty.

The benefits of cultivating brand loyalty are:

• Retaining customers: While other brands in your market may offer promotional deals and other marketing tactics, your loyal customers are more likely to resist those approaches and commit to purchasing your product.

• Making more sales: Increased sales can lead to more opportunities and new loyal clients. This makes brand loyalty a long-term investment for your company.

• Allowing premium pricing: Loyal customers are less likely to pay attention to price fluctuations and premium pricing.

What are some brand loyalty examples?

One example of brand loyalty is Starbucks, which uses gamification in its app to create a more engaging customer experience. Another is Sephora, which rewards customers using ascending tiers of points that provide access to luxury products.

How to increase brand loyalty

Brand loyalty can compound over time and can make a big difference in your profitability over the course of the customer’s entire relationship with your brand. Here are some tips for increasing brand loyalty: 

• Understand what your customers need and offer them a great product

• Be clear on what you offer and follow through on your promises

• Keep your products available and accessible for customers to find

• Get caught supporting your brand’s values

• Offer a range of products to meet customer’s individual needs

Related terms 

• Brand strategy

• Target market

• Brand management

• Jobs to be done

Learn more about brand loyalty with Coursera 

If you’re ready to take the next steps and learn more about brand loyalty and the customer journey, consider earning the Google Digital Marketing & E-commerce Professional Certificate on Coursera. With this beginner-level series, you'll learn skills in e-commerce, email marketing, search engine optimization, and more. Earn your certificate in as little as six months.