May 16, 2024
Customer loyalty

What is customer loyalty and how can it be achieved?

what is customer loyalty

‘Customers’ and ‘loyalty’ are not unfamiliar concepts, the terms are regularly used within every company. And yet, the concept of ‘customer loyalty’ has many definitions. For some, it’s all about customer satisfaction, while others focus on customers’ repeat purchases. In this blog, we’ll answer the question ‘what is customer loyalty’ and explain how to achieve and optimize it.


What is customer loyalty?


Customer loyalty refers to the customers who remain loyal to a particular brand, service, or product. It goes beyond just getting customers to make purchases from you repeatedly. It also refers to an emotional connection and a willingness to recommend the brand to others. At the end of the day, it’s always about the relationship between a customer and a company. Customer loyalty relates to both the attitude component (satisfaction) and the behavioral component (behavior). These elements are inextricably linked to each other.


Importance of customer loyalty


As a business, you want to do everything you can to promote customer loyalty. Research shows that when companies are able to improve loyalty, this has an impact on profitability. Loyal customers are more likely to make recommendations to others, spend more money more often, cost less money to the company and generally stay a customer longer. Before we explain how to get started with this, it’s good to know what metrics there are to measure customer loyalty.


The benchmarks

There are several indicators that can be used to measure customer loyalty. This includes customer satisfaction surveys, Net Promotor Score (NPS), customer lifetime value, repeat purchases, and customer retention rate.

customer loyalty

Strategies for increasing customer loyalty


Just as there is no one answer to the question ‘what is customer loyalty’, there is also no one strategy to make customers loyal. That’s why we’ve listed the most important ones.


  • Personalize the customer experience: Collecting customer data is crucial in this process. Make sure that you can store data by means of a central database, in order to stay informed of the history. The ideal way to work to offer the customer relevant communication and personal deals.
  • Reward loyal customers: Make use of a loyalty program so that you can easily reward existing customers with discounts, for example. This can also be done by means of savings campaigns or possible giveaways.
  • Stay in touch with your customers: Communication remains the key to success. Therefore, offer excellent customer service but also be open to feedback from the customers.
  • Build a community around your brand: for example, organize events to build the relationship with visitors or create an online platform.


Be aware that surprising, captivating and retaining customers is an ongoing process. A customer who is loyal will only remain loyal if you constantly pay attention to their needs and expectations. Read more about the success stories of companies with strong customer loyalty here.


The future of customer loyalty


Customers expect more and more personalized experiences, both offline and online. Therefore, the focus will increasingly be on customer data as the basis for personalization, marketing automation and loyalty. Advanced technologies, such as AI, will be essential to analyze customer data and make individual recommendations.

That is why the use of loyalty programs is also increasing over time: they can easily offer exclusive benefits. Gamification elements and social interactions can also be integrated for customer loyalty. There are plenty of benefits for businesses and customers, but don’t lose sight of the crucial role of data privacy and ethics. Customers are attaching increasing importance to the protection of their personal data and its transparent use. Businesses will need to adhere to strict standards and regulations to maintain customer trust and strengthen loyalty.