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  • Writer's pictureAustin Burns

What Drives Customer Loyalty?




I read in a report recently that stated consumer loyalty in the retail space has dropped from 79% in 2022 to 68% in 2023. Nearly half of consumers surveyed are attracted by “incentivized loyalty”, meaning their loyalty is contingent on prices. As such, incentivized loyalty fell 36% from 76% in 2022.


Here’s something to think about: if a customer is loyal to your brand and eventually leaves your brand, how loyal were they in the first place?


Yes, it’s true that people will go where the prices are low. But consumers will pay more for exceptional service. It is imperative for retailers to maintain consistency, make connections, and build relationships with their client base. In most cases, consumers are okay with paying a little more of a premium if they know the restrooms will always be clean, the food will always be fresh, the people will always be nice, and that service will be quick. A perfect example of that is Chick-fil-a.


While it certainly helps, the answer is not always to have a great app and low prices. The answer to an inconsistent consumer is consistency with your brand and the experience that is tied to your brand. Customer loyalty starts with a feeling or experience that they haven’t felt somewhere else; it’s not the app or low prices.


At Paragon, we want to help you with your brand strategy and store design. Ultimately, the result is a customer experience that drives sales and loyalty.

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