Marketing
Amazon, T.J. Maxx, Walmart lead in customer loyalty
February 29, 2024
Amazon, T.J. Maxx and Walmart are the top three retailers respectively when it comes to customer and brand loyalty.
That's a top finding from Brand Keys' 27th annual Customer Loyalty Index.
"These brands are 'loyalty juggernauts' — brands of such overwhelming economic force that their ability to meet expectations makes them far more powerful than universal awareness alone," Robert Passikoff, Brand Keys founder and president, said in a press release.
Today the loyalty paradigm is much different than a few decades earlier, as loyalty and consumer choice don't come down to one-or-the-other options, he explained in the release.
"Today's loyalty bottom-line comes down to consumers' deepest expectations, and how they feel which brand measures up best. Customer behavior and brand loyalty are now almost entirely governed by emotional values related to expectations, and expectations grow constantly."
The index provided several economic facts that substantiate the cost-and-effort effectiveness of brand loyalty strategies:
- It costs 16 times more to recruit a new customer than keep an existing one.
- A 5% increase in loyalty lifts lifetime profits per customer as much as 78%.
- A 5% loyalty-increase is equal to a 12-21% across-the-board cost reduction program.
