Marketing

Customer loyalty that goes beyond the transaction

Customer loyalty is more elusive than ever. Competing on cost, experiences, product assortment and more, retailers want to create relationships that last. Too often, however, their efforts are misplaced. Customers churn and retailers miss what they actually want.

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July 3, 2026 by Andrew Stern — CEO, Quilt Software

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Customer loyalty is more elusive than ever. Competing on cost, experiences, product assortment, and more, retailers want to create relationships that last. Too often, however, their efforts are misplaced. Customers churn and retailers miss what they actually want.

Data from CapitalOne shows that 65% of retail business comes from loyal customers — most of whom credit their loyalty to intangibles like shared values and vendors who "get" them.

These consumers want an authentic experience — seeing and touching products, asking questions of in-house experts, and seeking guidance to inform their decisions. They want to shop where there is a trusted relationship and alignment.

For retailers, this requires rethinking standard promotional norms and building a different type of customer relationship. It goes beyond asking for ratings and post-purchase reviews, or storing phone numbers for discounts and rewards programs. It even goes beyond convenience.

The magic lies in building a layer of loyalty that isn't measurable on a day-to-day basis, but shows up in the bottom line: invisible loyalty. It's prominent with retailers that don't try to be everything to everyone. Because of their specialized focus and expertise, over time, these retailers are able to build relationships that are authentic, personal, and long-lasting.

Personalization that feels human

Invisible loyalty begins with personalization, though not the algorithmic, rapid follow-up of, "You looked at this item before, can I interest you in something similar?" that has become an online standard.

For example, at a neighborhood wine shop, a regular customer stops in every Friday evening — as they have for years. Before they get to the store, the owner sets aside a bottle they think the customer would like — one the shop just brought in, similar to the light-bodied reds they gravitate toward but from a new region. There is no system prompting that recommendation — it's memory, pattern recognition, and care.

It may seem like a small moment, but it reflects something meaningful in this relationship: the customer is recognized and understood, and therefore feels valued. Personalization is not about optimizing conversion rates, it's about continuity. It's a level of understanding that feels human and picks up the customer journey midstream versus at ground zero.

Shared values create alignment

A deeper layer of invisible loyalty is reflected in shared values between customers and products.

Consider a neighborhood grocery store that prioritizes sourcing from local farms and educating customers on their origin. The signage does more than list prices. It tells them the story behind each product — who grew it, where it's from, and when to recognize its ripeness. Over time, regular customers begin to recognize those farms and look for their products, associating their weekly shopping with support for a broader ecosystem.

When these shared values are present, loyalty builds. It becomes less about comparing options and more about trust. In fact, some customers will go out of their way or pay slightly more to shop at these places. They may even recommend the store to friends not just for what it sells, but for what it represents.

Trust is built in small moments

Another layer of invisible loyalty is seen in trust cues — the signals that tell a customer they are in good hands.

For example, a customer who is unsure about choosing an engagement ring can go to their local jeweler for a thoughtful walkthrough of options. They might learn the differences between stone cuts, how settings impact durability, or what styles align with the recipient's lifestyle. While this conversation may take extra time, it replaces uncertainty with clarity.

Over time, customers continue to rely on this expertise — asking more questions and second-guessing less. The relationship shifts from transactional to advisory, and the retailer becomes a trusted guide rather than just a place to buy.

Like personalization and shared values, trust-building interactions are largely invisible from the outside. They are rarely documented or attributed, but often determine whether a customer feels the need to look elsewhere.

Invisible loyalty is resilient

Personalization, shared values, and trust create a form of loyalty that is resilient. Personalization makes customers feel known. Shared values make them feel aligned. Trust built over time makes them feel confident. Together, they form a foundation that is less sensitive to price, less reactive to competition, and less dependent on constant re-engagement.

This is why specialty retailers can maintain a strong and loyal customer base even in today's highly competitive retail landscape. Their advantage is not their size or pricing — it's the depth of the relationship they have built over time.

Customer loyalty that lasts

Invisible loyalty doesn't develop quickly. It is the result of consistent, intentional actions made over time. It requires investing the time to get to know customers, their preferences, and how the retailers' expertise and products fit into their life. It demands patience and a willingness to prioritize relationships over short-term wins.

For store owners, this can feel challenging, but reinforces the importance of fundamentals — going out of the way to engage with customers, and remembering the small details about their purchases or related interests over time.

When retailers build invisible loyalty, it's invaluable. And, in today's retail environment where commerce is focused on convenience, it sets them apart.

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About Andrew Stern

Andrew Stern is the CEO of Quilt, a fast-growing technology company serving over 20,000 independent specialty retailers. A seasoned executive with a background in software, payments, and M&A, he brings a data-informed perspective on the challenges and opportunities facing Main Street businesses and the evolving role of specialty retail in the modern economy. Andrew holds a BA with honors from Princeton and an MBA from Harvard Business School, where he was a Baker Scholar. He lives in New York City with his family and their rescue dog, Sydney.

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