These are the keys to establishing brand loyalty today

All brands want a consumer who’s loyal—but these days, they’re getting harder and harder to come by, and the concept of what “loyalty” means is getting more difficult to pin down.

Rising concerns over brand loyalty have emerged in recent years amid soaring consumer prices, the rise of private label and dupe culture, and the emergence of new ways to shop.

“Categories are crowded, access is high, switching costs are low, and it’s very easy for consumers to experiment with different brands and not have that loyalty,” Kearney Consumer Institute Lead Katie Thomas told Retail Brew.

What is brand loyalty?

One of the biggest “struggles” with brand loyalty is its definition, Thomas said. Many brands consider loyalty to be simply a repeat purchase, when really that can be an indication of “inertia,” habitual buying, or decision fatigue, she said.

While many brands are chasing repeat purchases through offerings like subscribe and save and loyalty programs, a major defining factor of loyalty comes down to an emotional connection, establishing trust and longevity. For example, a “brand I grew up with,” like Diet Coke or Heinz ketchup, is a strong indicator of loyalty, Thomas said.

What’s changing?

Of course, price is one of the contributors to consumers shifting loyalty. A recent DOSS survey found that 60% of consumers said they’d stop shopping for a brand they were loyal to because of price increases, while 70% identify as less brand loyal than a year ago. Even higher-income shoppers are seeing brand names as less of a selling point, according to a Simon-Kucher survey in May. Consumers are also “deal chasing” more often and have low “institutional trust” with larger brands amid a rise in boycotts, Thomas said.

Grocery is the category where consumers are most likely to switch. Reformulations, shrinkflation, and an overall lack of consistency can create a frustrating consumer experience, Thomas said, and the category’s low prices make it easier to try something new.

“A lot of what consumers are doing right now is just sheer experimentation,” Thomas said. “‘My budget’s a little tighter.’ It’s not a loyalty argument in their own mind. It’s ‘Where can I switch?’”

Beyond price, consumers are also looking for value, Thomas noted, seeking brands and retailers that strike a balance of “right price for the right quality,” citing Aldi and Quince as examples.

What can brands do?

Many retailers and brands—like Kroger and E.l.f. Cosmetics—have been evaluating price cuts as a way to win back and establish customer loyalty. Beauty brand Dime’s latest price cuts are centered on “prioritizing that long-term brand trust and customer loyalty rather than short-term margin potential,” Dime’s Chief Brand Officer Bernice Merlini previously told Retail Brew.

Beyond pricing, for brands to establish true loyalty, Thomas said they need to practice consistency and clear differentiation—whether it’s related to status and identity, functional quality, or simply bringing consumers joy. Grocery brands like Poppi and Fishwife have benefited from becoming more “cultural goods,” HighSnobiety reported earlier this year, while Thomas noted lifestyle brands like Aritzia or giants like Apple tend to have strong brand loyalty, ticking several of those boxes for consumers.

Loyalty programs are another key to establishing repeat customers. But even they don’t always establish full emotional loyalty, as consumers often seek the program that offers the best discounts.

Retailers should increasingly think about “how can they make the loyalty program more of a loop and more of a feedback push and pull, rather than feeling like ‘Okay, we want data, and so we’re going to incent consumers to shop here with promotions,’” Thomas said.

And to bring back wayward shoppers, brands should lean into “experimentation,” she said, citing Lululemon’s “Dupe Swap” a few years ago as a notable example.

What’s next?

Doubling down on the above could help brands maintain loyalty amid the rise of agentic commerce, which is likely to further disrupt brand loyalty, Thomas said.

“What we’re hearing from consumers feels more about the outcome or the product itself than the brand,” Thomas said. “You maybe are more likely to pick ‘I want a 100% cotton sweater’ rather than ‘I want a sweater from J Crew.’”