Brand Loyalty is not to be confused with Customer loyalty. The former is perception-based and is heavily influenced by brand image and experience. However, the latter is more money-based and depends on prices and discounts. Brand loyalty is also less expensive to retain than customer loyalty, which requires constantly offering low prices and regular discounts to maintain best-deal-on-the-market status.

Brand-loyal customers believe a certain brand offers higher quality and experience than competitors. Quality is the biggest game-changer that dictates brand loyalty. No amount of marketing can save your brand if the offerings compromise on quality. Once established, brand loyalty is fairly easy to retain as long as product quality and service level remain high.

Brand Ambassadors, who deliver free word-of-mouth advertising on social media alongside Loyalty Programs can make your customer return. These factors are especially true for premium-priced brands. Transparency of intent and communication also add value to customers.

Consumers are often swayed by their heads, hearts, or hands. Rationality and Cold logic appeal to the first category while non-tangible benefits appeal to the second. Hand loyal customers, the most difficult to convert among the three, often buy without regard for outside factors such as price.

In a crowded market, first-class service that makes customers feel valued sets a brand apart from its competitors. The catch however is that exceptional customer service is expensive —24/7 chat reps, social-media managers, phone operators, support-ticket staff and more.