What does the term 'customer loyalty' mean?

Customer loyalty refers to a consumer's commitment to repurchase a brand or continue using its products or services over time. This commitment is often influenced by positive experiences with the brand, satisfaction with the quality or value of the products, emotional connections, and a perceived alignment with the consumer's needs and values. Loyalty can manifest in repeat purchases, brand advocacy, and a willingness to recommend the brand to others.

The significance of customer loyalty lies in its impact on a company's long-term success; loyal customers tend to contribute more to a business's revenue as they are more likely to make repeat purchases without as much promotional effort required. Companies often invest in loyalty programs or strategies to encourage and reward this kind of commitment among their customers, recognizing that it is generally more cost-effective to retain existing customers than to acquire new ones. This term encapsulates the essence of building lasting relationships that go beyond mere transactions, fostering brand attachment and trust.