Top Loyalty Brands Shift as Customer Expectations Soar 32 Percent

There's a pivotal shift underway in the brand landscape as consumer expectations jumped 32 percent year over year, representing the largest single-year increase since 1998, brand loyalty and engagement research firm Brand Keys noted in its 2026 Customer Loyalty Engagement Index.

This surge in customer expectations has transformed the competitive terrain, with 40 percent of product and service categories identifying new #1 brands in their ability to meet evolving consumer demands.

"This year marks an historic moment," said Robert Passikoff, founder and president of Brand Keys. "Expectations are rising faster than brands are improving. Consumers want more from brands across every touchpoint, and they reward brands that deliver. Long-time loyalty leaders are being challenged by brands that better anticipate and deliver what matters most to consumers."

This year's engagement and loyalty leaders reflect not only brand performance but cultural relevance and the ability to meet or exceed rapidly rising brand category expectations. A sample of 2026's top-ranked retail brands includes the following:

• Apparel: Levi Strauss
• Athletic Shoes: Skechers
• Department Stores: T.J. Maxx
• Discount: Walmart
• Dollar Discount: Dollar General
• Firearms: Ruger
• Home Repair: Home Depot
• Natural Markets: Whole Foods
• On-line Payments: PayPal
• On-Line Shoes: Zappos
• On-Line: Amazon
• Pharmacy: CVS
• Price Clubs: Costco
• Shipping: UPS
• Sporting Goods: Dick's

The 2026 CLEI underscores that loyalty is the most powerful driver of profitability. This year';s data also showed the following:

• Retention costs remain 17 to 25 times lower than acquisition costs, a 26 percent increase since 1997.
• A 5 percent increase in loyalty can now yield up to 88 percent higher lifetime profits per customer.
• A 2 percent rise in loyalty can deliver as much as a 29 percent reduction in across-the-board marketing and operational costs.

"These dynamics are why loyalty's correlation with market share remains so strong, Passikoff said. "Loyal customers are six times more likely to engage, repurchase, and amplify brand messaging. The bottom line: loyalty moves markets."

Long-term leaders continued to dominate in certain sectors: Discover (Credit Cards, 28 years), Domino's (Pizza, 22 years), Dunkin'; (Out-of-Home Coffee, 20 years), Konica Minolta (MFP Copiers, 19 years), Hyundai and AT&T Wireless (17 years), and Amazon (15 years).

Yet stability no longer guarantees category leadership. The 2026 findings highlight disruption: with 40 percent of categories reporting new top-performing brands. "Elevated consumer expectations are shifting the rules of loyalty engagement, and brands that fail to adapt risk being overtaken," Passikoff said.

"The loyalty paradigm has fundamentally changed," Passikoff noted. "Awareness and satisfaction aren't enough. Those are but table stakes. Today's loyalty is more complex, more measurable, and far more predictive, if done right. Brands that align with what consumers truly expect emotionally and functionally will see deeper engagement, greater market share, and higher profits."