E-Commerce Dictionary
Customer Loyalty
Definition
A measure of a customer's likelihood to do business with a company or buy a specific brand repeatedly.
Deep Dive
Customer Loyalty is a measure of a customer's likelihood to repeatedly do business with a company or consistently purchase a specific brand over competitors. It goes beyond simple repeat purchases, implying a deeper emotional or rational commitment stemming from positive experiences, trust, perceived value, and satisfaction. Loyal customers often develop an affinity for a brand that makes them resistant to competitive offerings, even if those offerings are slightly cheaper or more convenient.
Examples & Use Cases
- 1A consumer consistently choosing the same brand of smartphone despite new models from competitors being released
- 2A customer always returning to a specific airline for travel due to positive past experiences and their rewards program
- 3Recommending a particular software provider to a colleague because of excellent product performance and responsive customer support
Related Terms
Customer RetentionBrand AdvocacyCustomer Satisfaction