Brand loyalty is perception-based (image and experience). Brand-loyal customers believe that a certain brand represents both higher quality and better service than any competitor—and the price does not matter. Brand-loyal customers might make fewer total purchases, but the profit margins on their purchases are larger. Once established, brand loyalty is fairly easy to retain—assuming, of course, that product quality and service level remain high. 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-Loyalty Leader

Example of companies who have made highly profitable investments in brand loyalty by prioritizing quality and customer service. Not only can these brand-loyalty leaders charge more for their products, but they also save on marketing costs—SOCIAL MEDIA and EMAIL MARKETING to existing customers is a fraction of the cost of attracting new customers.

In 2021, Apple had an outstanding brand loyalty score of 92%—the tech giant retained a higher percentage of existing clients than any other company in any industry. Apple’s status as the world’s most valuable brand is based not only on revolutionary technology and state-of-the-art design but also on unparalleled brand power and stellar customer service. Anyone who has ever seen a line of customers wrapping around an Apple store in anticipation of the latest release understands that brand power impacts the true value of a product as much as—or more than—any other driver of market performance.

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