Successful businesses rely on serving consistent, long-term customers — often even more than attracting new ones. But what creates loyalty between customers and a business? In this article, we’ll share the top customer loyalty stats to answer that question.
From breaking down the basics of customer loyalty and brand loyalty, to digging into what drives customers to remain loyal or switch brands, we’ll help you understand today’s loyalty norms so you’re better equipped to build a brand that your users stick with.
What is customer loyalty?
Customer loyalty is the measure of how likely customers are to continue doing business with a company over time. For most businesses, customer loyalty is essential, as returning customers are often much more profitable and less costly to retain than acquiring new ones.
What's the difference between brand loyalty and customer loyalty?
While brand loyalty and customer loyalty are related, they’re not the same.
Unlike customer loyalty — which refers to the transactional relationship between a customer and a company — brand loyalty refers to the degree to which customers are committed to a particular brand based on their emotional and psychological connection (think imagery, experiences, etc).
Here are two quick examples to make the difference clearer:
- Brand loyalty: A customer exclusively purchases Nike shoes or Apple products — regardless of changes in price, perks, or convenience — because of their emotional connection and attachment to the brand.
- Customer loyalty: A customer makes repeat purchases from Amazon not because of an emotional attachment or identity element, but because of its fast delivery services and comprehensive shopping experience.
The key distinction lies in scope and motivation: Brand loyalty is about emotional resonance with a specific brand’s image and values, while customer loyalty is about the overall satisfaction and perceived value derived from a company’s entire ecosystem of products, services, and interactions.
Top customer loyalty statistics
Price is the top factor keeping customers loyal, outranking customer service and product or service offerings. In fact, 60% of consumers switch brands due to cost.
For businesses like My AskAI that are looking to stand out in a crowded landscape of customer support chatbot players, price has been a main differentiator when it comes to building and reinforcing their customer loyalty. “We’re about ten times cheaper [than competitors],” explains My AskAI Co-Founder Alex Rainey.
Customers who highly trust a business are 88% more likely to buy from them again.
With 72% of global customers feeling loyalty toward at least one brand or company and three in four consumers considering trust pivotal in their choice of stores, it’s clear that customers are looking for more than transactional relationships with companies. They’re looking for businesses to offer transparent communication, ethical practices, and authentic intentions in service offerings and products.
When bootstrapping Bubble, co-founder Emmanuel Straschnov noted that building trust with users from the outset was critical to the platform’s initial and longstanding success.
“Users value our independence and the fact that users are our only stakeholders. They feel that they have a stronger voice in our decisions (and they do!).”
The customer loyalty management market is valued at over $5.5 billion and is expected to surpass $24 billion by the end of 2028.
Customer acquisition costs for companies have risen. The nearly five-fold increase in the loyalty management market showcases how critical customer loyalty has become to business success, rather than customer acquisition. Companies are much more aware of the financial benefits of retaining existing customers, focusing their efforts on customer engagement.
57% of customers cite high-quality products as a driver of loyalty.
While being low-cost is a top factor keeping customers loyal, customers also want to feel that they're getting fair value for their money. When a price matches or exceeds the perceived quality of a product or service, they’re more likely to commit to an ongoing relationship with a company — 18% of these loyal consumers use subscriptions to show that commitment.
Top loyalty program statistics
85% of shoppers say a brand’s loyalty program makes them more likely to continue doing business with brands.
And studies show these loyalty programs drive 83% of consumers to make repeat purchases.
Loyalty program usage has increased by 28% in 2024, and for good reason. Well-designed programs tap into both financial and psychological rewards that keep members of loyalty programs engaged and excited about repeat purchases.
- On average, American consumers belong to 16.7 customer loyalty programs.
- 64% of these loyalty program members spend more money to maximize points earnings.
Psychologically, a loyalty or rewards program can create a sense of achievement through “point” accumulation (i.e., a customer is rewarded with a discount when they reach a certain amount of points for purchases).
Financially, too, the top-performing loyalty programs — which often offer strategic discounts, tiered benefits, and personalized offers — can encourage customers to spend more.
Loyalty program members are twice as likely to spend money on a brand with a paid loyalty membership over a free loyalty program.
Paid loyalty members, as opposed to members who are a part of a free plan, often feel like exclusive members. Paid access loyalty programs give customers a sense that they’re receiving a higher-value product or experience than a free one would provide.
- 58% of American shoppers say they expect free shipping and no order minimums with their paid loyalty memberships
- 39% expect same-day delivery
- 31% expect to find more shopping options than they would in-store
To build brand loyalty and overall customer loyalty, organizations have to understand customer behavior, incentives, and needs.
Founder of WashDryFold POS (built on Bubble!) Brian Henderson says the best way to do that is by getting a product or service into the heads of paying customers or users as fast as possible. The faster you do that, “the faster you get that feedback you need to make your [product] better.”
- 81% of loyalty program owners said their program was helpful during the economic downturn
- 90% reported positive ROI, with the average ROI being 4.8x.
Loyalty programs transform sporadic transactions into strategic, repeatable customer relationships. Compounded over time, their impact can lead to incremental revenue growth.
Top brand loyalty statistics
75% of American consumers say they’re more likely to be loyal to brands that understand them on a personal level.
That means knowing their preferred contact method and account type or status, and offering recommendations based on purchase or search history.
When companies offer tailored recommendations for products or services, personal preferences, or even pre-filled data, existing customers feel understood and valued — beyond transactional interactions.
- Around 7 in 10 global customers feel loyalty toward at least one brand or company
- 52% of customers report going out of their way to buy from their favorite brands
- Millennials and Gen Z, in particular, are some of the most loyal customer bases compared to Gen-X and Baby Boomers.
Today’s consumer culture emphasizes individual identity. Brands that recognize and celebrate individual differences — rather than treating customers as generic demographics — tap into a deeper psychological need for recognition and respect.
- 88% of consumers say it takes three or more purchases for them to become loyal customers
- 37% say they need to make five or more purchases before committing to a brand, while just 12% say they’re ready to commit after two.
Building true brand loyalty is a marathon, not a sprint. The vast majority of customers require multiple positive interactions before feeling genuinely committed.
55% of US and UK consumers say they trust brands less than they did in the past.
Lack of trust leads to poor customer retention — especially now. In fact, lying about product performance is the top reason customers switch brands.Consumers today aren’t as susceptible to catchy marketing strategies and expect complete and radical honesty from the brands they are purchasing from.
Likewise, because consumers often feel personally connected to brands they buy from, being loyal to a company that isn’t truthful can feel personal.
Top trends in brand and customer loyalty
Gen Z is 57% less brand loyal post-pandemic.
The economic downturn during the pandemic pushed Gen Z to be hyper-pragmatic and to prioritize authentic, personalized experiences over traditional, generic brand relationships.
In essence, Gen Z, more than other generations, view loyalty as conditional — they consistently re-evaluate relationships based on real-time performance, ethical practices, and personalized experiences.
61% of consumers are willing to spend more with companies if they offer a customized experience.
But 30% of consumers are put off by irresponsible data usage. Consumers want a curated experience — in line with their desire to feel uniquely understood — but want personalization efforts to be done ethically (no non-consensual data collection, privacy violations, exploitative marketing practices, etc.).
Ethical loyalty climbed to 30% in 2024 with 39% of Gen Z and 42% of millennials saying they’d pay a price premium for sustainability.
Unlike other generations, Gen Z is quick to abandon brands that don't align with their moral and ethical standards. On the other hand, they’re interested in purchasing from brands that match those standards — like sustainability — and are willing to pay more for it.
- 45% of customers switch brands due to poor customer service
- During the COVID-19 pandemic alone, 36% of American consumers switched brands out of necessity due to product unavailability and changing attitudes.
Consumers believe customer service is essential to their experience of a product or service — so much so that they’ll abandon a company after a poor experience. But price and value really became a driving factor for brand switching during the pandemic, which was a time of economic uncertainty.
Build a loyal customer base with Bubble
Building lasting customer loyalty requires brands and companies to consistently deliver value while making customers feel recognized, appreciated, and emotionally connected. And now more than ever, consumers expect personalized experiences that reflect their preferences and values.
With Bubble, you can move beyond generic, template-based solutions and create branded experiences that resonate with customers. Whether you're building a customer portal, loyalty program dashboard, or full-featured marketplace, Bubble lets you control every aspect of your application’s look and feel — no coding required.
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