What is Customer Loyalty?

Definition: Customer loyalty indicates the extent to which customers are devoted to a company’s products or services and how strong is their tendency to select one brand over the competition.

What Does Customer Loyalty Mean?

What is the definition of customer loyalty? Customer loyalty is positively related to customer satisfaction as happy customers consistently favor the brands that meet their needs. Loyal customers are purchasing a firm’s products or services exclusively, and they are not willing to switch their preferences over a competitive firm.

Brand loyalty stems out of a firm’s consistent effort to deliver the same product, every time, at the same rate of success. Organizations give special attention to customer service, seeking to retain their existing current base by increasing customer loyalty. Often, they offer loyalty programs and customer rewards to the most loyal customers as an expression of appreciation for doing repeat business with them.

Let’s look at an example.


A typical example of customer loyalty is Starbucks. The company has managed not only to retain its customers but also to expand its customer base through exemplary loyalty programs. Capitalizing on the fact that it has created a successful, recognizable brand worldwide, Starbucks seeks to enhance the customer experience every time, every time, at the same rate of success. On top of that, the company offers the My Starbucks Rewards customer loyalty program.

Starbucks’ loyalty program features a mobile app that allows customers to pay their coffee with built-in payments. In that way, customers can pay for their coffee easily and swiftly while reducing the use of credit cards. In turn, Starbucks compensates them with loyalty points and discounts.

In fact, customer loyalty is built from the company to the customer. The more satisfied the customer, the more like to do repeat business with a firm. Then, customer loyalty encourages customers to shop particular brands regularly, to spend more money, to advertise the brand with a mouth-to-mouth advertising and to have a positive shopping experience.

Summary Definition

Define Customer Loyalty: Customer loyalty means a consumer’s devotion to a company, product line, or brand.

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