Customer Experience and Brand Loyalty

In 2025, customer experience is effectively the brand: 80% of customers say the experience a company provides is as important as its products or services. More CX leaders now rank **quality and experience** above price as the main drivers of loyalty, with 88% citing quality and 85% citing experience, compared with 70% for price.

Yet consumers still comparison‑shop aggressively: about 69% say price strongly influences their decision to engage with a brand. The pattern is clear—price may win the first purchase, but ongoing loyalty depends on consistently meeting or exceeding expectations across the entire journey, from discovery to support.

Loyalty is fragile. PwC reports that 52% of consumers stopped using or buying from a brand because of a bad product or service experience, and 29% left due to poor customer experience online or in-person. Other studies echo this, with roughly half of customers who left a previously favored brand in the last year citing poor CX as the main reason.

At the same time, executives often misread the situation: roughly nine in ten leaders believe loyalty has increased, while only about four in ten consumers agree. This perception gap means brands can be losing loyal customers while believing their strategies are working, especially if they focus on points and discounts without fixing broken journeys.

Loyalty today is less about cards and more about feelings. Research shows that customers who feel appreciated are far more likely to recommend, repurchase and spend more with a brand. In one large shopper survey, 44% said their favorite brands make them feel appreciated or valued, and 43% said these brands understand their preferences and prioritize them.

Deep, trust‑based loyalty has actually declined, dropping to 29% in 2025 after years of growth. With endless choice and rising costs, customers stay loyal when brands recognize them as individuals, use data transparently and respectfully, and deliver small but meaningful moments of delight—surprise perks, proactive support, or content tailored to their needs.

Consumers expect brands to use their data to improve experiences, not just marketing. Many are more comfortable with personalization based on purchase history and stated preferences than on opaque tracking of online behavior. However, a significant share still feel only somewhat or not at all comfortable using AI tools to interact with brands, highlighting a trust gap.

Where implemented thoughtfully, AI is boosting loyalty: brands using AI in customer service report more positive feedback and efficiency gains. High AI users among consumers are also more likely to say they’ve become more loyal to brands in recent years. The winning formula is clear—use AI to make experiences faster and more relevant, but keep humans visible where empathy, judgment and complex problem‑solving matter most.

Leading brands now treat loyalty as the outcome of a well‑designed customer journey, not just a points program. Product and interaction experiences together account for more than 60% of the change in loyalty, making every touchpoint—from onboarding and education to support and community—a loyalty “battleground.”

Effective programs integrate rewards, personalization and service: 78% of people believe they should be rewarded for their loyalty, yet over 70% of brands say their loyalty programs are poorly integrated with the wider experience. The opportunity is to connect data, channels and teams so that customers see clear, consistent value each time they engage—turning satisfaction into advocacy and short-term purchases into long-term relationships.