Brand loyalty is a consumers preference to buy a particular brand in a product category. It occurs when customers continue to purchase from the same brand over and over again, despite competitors offering similar products or services. Brand-loyal customers believe that a certain brand delivers both higher quality and better service than any competitor, and the price does not matter. Unlike customer loyalty, which is money-based (prices and discounts), brand loyalty is perception-based (image and experience). Brand loyalty is important because it is a major driver of profitability: 65% of revenue in most companies comes from repeat business with existing clients, and existing customers loyal to brands purchase 90% more frequently than new customers.

The difference between brand loyalty and customer loyalty is that customer loyalty focuses on the customers spending, while brand loyalty is a higher-level, more reputational achievement. Customers who are truly brand loyal will foster an emotional link with your brand, rather than one just based on price or value.

To create brand loyalty, companies must reinforce habits and remind consumers of the value of their purchase. Building brand loyalty is important because it drives growth, and new customers who purchase products and become brand loyal will become repeat customers. They will also recommend the brand to their peers and become ambassadors for the products out in the real world.

Examples of brand loyalty include Apple, Coca Cola, and Pepsi, which have their own loyal customers who prefer their products over competitors with similar offerings.