Customer Loyalty Still Exists, But It Has Shifted

Ninety-eight percent of of U.S. consumers make repeat purchases annually, but 55 percent say their loyalty has changed in the past five years, according to new data from research company Clutch.

The findings show that brand loyalty remains but is increasingly tied to transparency, trust, and authenticity over just price or quality.

"Brand loyalty isn't dead, it's evolving," said Anna Peck, who manages marketing content at Clutch, in a statement. "Today's consumers expect more than a good product. They want honesty, clear values, and accountability, especially when brands get it wrong."

Other findings from the research included the following:

• Ninety-six percent of U.S. consumers say transparency is essential to earning their loyalty. Consumers expect companies to communicate clearly and own their actions. Silence or vague responses, especially during controversy, can erode trust quickly.
• Sixty-two percent believe companies care more about looking good than providing real value.
• Nearly half of U.S. consumers say they would stop buying from a company if its marketing felt inauthentic.
• Overused buzzwords and exaggerated claims have led to growing skepticism.
• When a company missteps, 63 percent of consumers are willing to forgive only if the response feels sincere.
• Older generations value clarity and solutions, while younger consumers expect vulnerability and accountability.

"There's no one-size-fits-all response," Peck said. "Consumers across all generations agree that how a brand reacts during tough moments says more than any campaign ever could."

The report does offer a hopeful takeaway, though. Seventy-seven percent of U.S. consumers  believe companies care about earning their loyalty. The opportunity is there if companies meet consumers with transparency and a commitment to delivering real value, it stated.