What Is Brand Loyalty?

Written by Coursera Staff • Updated on

Customers develop brand loyalty when they make a habit of repeatedly buying the same items. Discover why brand loyalty is important and how to encourage it among your customers.

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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.

Why is brand loyalty important?

Brand loyalty is essential for increasing sales, retaining customers, and justifying premium pricing. According to the 2020 Edelman Trust Barometer Special Report, 70 percent of consumers indicated that trust in brands has become more important than in the past [1]. The study also found that brand trust is the second most significant consideration when making a purchase, second only to the item’s price.

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.

How to increase brand loyalty

Brand loyalty can compound over time and can make a big different 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 

Next steps 

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.

Article sources

  1. Edelman. “Trust Barometer Special Report: Brand Trust in 2020, https://www.edelman.com/research/brand-trust-2020.” Accessed May 17, 2023.

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