The Difference Between Customer Loyalty and Brand Loyalty

In this clip from our eLearning series, Allison Hartsoe, CEO of Ambition Data, explains why customer loyalty differs from brand loyalty. While customer loyalty is transactional, brand loyalty doesn't require any purchases. However, brand affinity or loyalty is often used as an indicator of future transactional customer loyalty. Find out why by watching the video.

Customer loyalty is transactional

As we've outlined using the customer loyalty loop in a previous segment from this eLearning series, customer loyalty is transactional. It's indicated by repeat purchases from customers when they no longer consider buying from other brands. In addition, customer loyalty is also an indicator of unlocked future customer value. After a certain amount of transactions it's likely that the customer will continue to buy from your brand in the future.

Brand loyalty is perceptual

While customer loyalty is transactional and based on purchase behavior, brand loyalty doesn't necessarily require any purchases. You read that right.A consumer doesn't need to buy from your brand in order to be loyal to it or feel good about it.A simple example could be your experience at Disney World as a child. While you didn't spend any money there (it was likely your parents) you still have affinity for the brand. As mentioned in the opening paragraph, this sort of brand affinity can be an indicator of future transactional loyalty. Since you had a good experience with the brand it's possible that you'll transact with that brand in the future.