Customer Loyalty Vs Brand Loyalty: Do you Know the Difference?

Customer Loyalty vs. Brand Loyalty

Brand Loyalty and Customer Loyalty are two different concepts that can be considered as a cornerstone in business. Though they are two separate concepts, they are closely linked. The common denominator is that they are both essential to customer retention and are the byproducts of constant and positive emotions of the customers. Let us analyze how these concepts differ from each other. Before that, let us have a closer look at what is brand and customer loyalty.

What is Customer Loyalty?

Customer loyalty is all about customer satisfaction. Customer loyalty refers to the capacity of a company to maintain customer satisfaction over a long period. This enables the company to retain the customers over a specified period and helps in increasing the productivity of the company.

Customer loyalty marketing is a strategy that influences your customers to return and do business with your company repeatedly. There are ways in which companies can boost customer loyalty, such as maintaining overall prices, offering multiple-purchase deals, and special offers. They can also reward customers with regular loyalty discounts. The companies tend to invest in customer loyalty because it is more effective than investing in new customers. 


Source: CMO

What is Brand Loyalty?

Brand loyalty is a term that is used to describe customer preference for a certain brand. In other words, customers prefer to buy a specific brand consistently. Brand loyalty exists, thanks to loyal customers; this happens when a customer is invested in your brand on a personal level. They purchase from your brand repeatedly, trusting that your products and services will fulfill their requirements. Successful business owners say that building brand loyalty is about making a promise to people and delivering on it. One of the best examples of a super brand is Apple. The Apple brand has a diplomatic advantage over the competition because of the Brand loyalty.

When a customer repeatedly buys a particular brand of a product and is reluctant to switch to another brand.

Customer Loyalty and Brand Loyalty: What is the difference?

The main difference between customer loyalty and brand loyalty is that customer loyalty mainly relates to the overall spending nature of customers i.e., it is purely associated with what you can offer them in terms of prices and offers. Brand loyalty, on the other hand, has nothing to do with offers; rather, they focus on how customers comprehend the brand. This can be analyzed through the company’s past experiences with the customers.

Customer loyalty denotes those customers who keep coming back to your company. They are concerned about getting lower prices and better discounts for specific products they’re looking for. In contrast, the consumers who are loyal to a brand believe that branded loyalty can offer you a better service and higher quality than anyone else.

Customer loyalty can be sustained and enhanced by controlling overall prices and offering discounts, special offers, or multi-buy deals and influencing your regular customers. Thus, it will hinder customers from purchasing products from elsewhere. Brand loyalty, on the other hand, is much easier to maintain once the brand name is established.

As long as your quality and the level of service you provide remains the same, brand-loyal customers will stick to you. Brand-loyal customers tend to make fewer purchases, although the profit margins the company makes are huge.

Maintaining Customer Loyalty and Brand Loyalty

Brand loyalty doesn’t require much effort to maintain once the brand name is established. If the quality of product and service persists the same throughout time, customers will stick to your products. While brand-loyal customers usually don’t purchase much, the profit margins are usually more than the ordinary. 

Customer loyalty needs more work, in the sense that they have to put more effort into establishing recognition among your customers and to get their trust. To do so, they make promotions, rewards programs, and special offers to grab the customer’s interest and make sure that they retain it.

Acquiring new customers can cost five to seven times more than retaining an existing customer.

Below are some tips to keep customers loyal and sustain brand loyalty:

Tips to Keep Customers Loyal:

  • Offer special discounts and rewards programs: You can offer your customers various rewards programs and bonuses on special occasions.
  • Develop a community: You can create a community for your customers that will prompt them to communicate with one another about your company and to propagate your offers and rewards programs among them.
  • Make your customers feel special: On special occasions like Diwali, Christmas, New Year, treat customers with tokens such as a letter, email, discount, or even a gift that would make them happy.

Tips to Boost Brand Loyalty:

  • Propagate your brand name: Try to propagate your brand name as far as possible, in a sense, it should be everywhere. Your products or services may be high-quality, but if you want to establish brand loyalty, your content has to be the same. You should maximize the advertisements and promo activities. It should be informative, engaging, and enlightening. 
  • Partnership with other brands: Bring in interesting elements by collaborating with other brands. You should provide customers with some exclusive offers. 
  • Maintain the trust: Give special care to maintain the consistency of the brand name and also the trust of the customers, because brand consistency is a huge factor in building brand awareness and trust. 


These are the important differences between customer loyalty and brand loyalty. However, the important fact is to understand that there are different customers looking for different needs. So, it is the company’s duty to meet their requirements by providing the best for them. Customer and brand loyalty are equally important for that matter.

By combining the two concepts in your marketing strategy, your profits will fly like never before. Companies need to develop loyalty within their customers, and they also ensure that the customers remain loyal to their brand. Thus, both brand loyalty and customer loyalty are important for a company because their final output is concerned with profit. The more the customers, the more the sale, the more the profits.

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