What Is Brand Loyalty?

Written by Coursera Staff • Updated on

Customers develop brand loyalty when they make a habit of repeatedly buying the same items. Discover why brand loyalty is important and how to encourage it among your customers.

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Key takeaways

Brand loyalty is the process of customers routinely purchasing from your business because they have come to trust you and your product.

  • Eighty-eight percent of consumers report that they find brand trust equally as important as price and quality [1].

  • Cultivating brand loyalty may result in higher customer retention and equate to making more sales.

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What is brand loyalty?

Brand loyalty occurs when customers prefer to buy a specific brand of item without considering if better items are available. It’s driven by positive associations with the brand, product enjoyment, reasonable pricing, and emotional satisfaction with each purchase.

Why is brand loyalty important?

Brand loyalty is essential for increasing sales, retaining customers, and justifying premium pricing. According to the 2025 Edelman Trust Barometer Special Report, 88 percent of consumers indicated that trust in brands is just as valuable to them as price and quality [1].

The benefits of cultivating brand loyalty are:

  • Retaining customers: While other brands in your market may offer promotional deals and other marketing tactics, your loyal customers are more likely to resist those approaches and commit to purchasing your product.

  • Making more sales: Increased sales can lead to more opportunities and new loyal clients. This makes brand loyalty a long-term investment for your company.

  • Allowing premium pricing: Loyal customers are less likely to pay attention to price fluctuations and premium pricing.

Read more: Marketing Careers: 6 Areas to Explore

What are some brand loyalty examples?

One example of brand loyalty is Starbucks, which uses gamification in its app to create a more engaging customer experience. Another is Sephora, which rewards customers using ascending tiers of points that provide access to luxury products.

How to build brand loyalty

Brand loyalty can compound over time and can make a big difference in your profitability over the course of the customer’s entire relationship with your brand. Here are some tips for increasing brand loyalty:

  • Understand what your customers need and offer them a great product

  • Be clear on what you offer and follow through on your promises

  • Keep your products available and accessible for customers to find

  • Get caught supporting your brand’s values

  • Offer a range of products to meet customers’ individual needs

Related terms 

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Article sources

  1. Edelman. “2025 EdelmanTrust Barometer Special Report, https://www.edelman.com/trust/2025/trust-barometer/special-report-brands.” Accessed December 11, 2025.

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