One school of thought is that brands should focus on penetration not loyalty, while others believe it is equally important - and recommend great brand building, positive brand experiences and strong consumer-brand relationships to build and retain it.  A deep engagement strategy is one way to do this. 


Brand loyalty can be viewed as behavioural and attitudinal.  Behaviourally, it is sticking with a brand at purchase or purchasing it more often than competitors e.g. in FMCG where decisions are more frequent.  It is commonly measured as the percentage of customers repeat purchasing or the percentage of share of customer category requirements.  Attitudinally, it is preferring a particular brand to competitors.  There are various measurement methods but most evaluate the depth of brand-customer relationships. 

Key Insights

1. Functional factors are key drivers of brand loyalty

2018 UK research revealed the importance of functional factors - such as price, choice and quality - as the key drivers of brand loyalty across sectors, with 88% of consumers citing them as responsible for brand loyalty. Therefore, brands should adopt strategies that answer the demand for functionality and convenience, such as the subscription economy, investing in chatbots as well as smart home technologies, and using VR and AR.