New Data Reveals That Brand Loyalty Is on the Rise Among Consumers

By STS News Desk On Nov 14, 2019

The Growing Focus on Direct-to-Consumer (D2C) Experiences Are Potentially Driving a Renewed Affinity for Brands

Yotpo, the leading eCommerce marketing platform, released its annual brand loyalty survey examining American consumers’ sentiment towards brands, and the role of rewards programs in harnessing and cultivating that loyalty.

“This year’s data showing continued strong brand loyalty among consumers supports the idea of a brand renaissance, the same phenomenon fueling the rise of direct-to-consumer and growth of the modern eCommerce industry,” said Tomer Tagrin, CEO & Co-Founder, Yotpo. “But the study also reveals that loyalty is hard won. Most consumers consider themselves loyal to only a handful of brands. To win, brands need to stay at the top of their game by offering amazing products at a fair price and creating valuable experiences worth coming back to. The survey shows that even loyalty programs need to excite to drive engagement.”

In our survey of over 2000 consumers in the United States, nearly 9 of 10 professed loyalty to brands, with nearly a quarter (24.82%) saying they’re in fact more brand loyal this year versus last.

Our previous survey (2018) found a fifth of consumers saying they’re more loyal, marking a 27.9% uptick in this segment. This support Tomer’s thesis that the shift to direct-to-consumer (D2C) efforts are powering a brand renaissance.

The D2C approach isn’t just for digital natives; it also increasingly adopted by established brands who figured out that every channel–from their eCommerce sites to their stores to everything in between–is a critical opportunity to impress consumers so that they’ll keep coming back.

Takeaways from Yotpo’s 2019 State of Brand Loyalty study include state of brand loyalty today and how can brands and merchants capture and keep their customers’ interest in the long run.

Consumers care about brands

Nine out of 10 (90.2 percent) consumers consider themselves equally or more brand loyal compared to a year ago.

	2019	2018
More loyal to brands this year	24.82%	19.4%
As loyal to brands this year	64.33%	70.8%
Less loyal to brands this year	10.85%	9.8%

How many brands are you loyal to?


1-5	61.08%
6-10	26.19%
11-20	5.68%

Asked to define their brand loyalty, consumers polled overwhelmingly characterized it as repeat purchasing (67.8%), followed by “love” for the brand (39.5%), and finally, preference despite price (37.7%).

What does being ‘brand loyal’ mean to you?

I tend to buy from the same brand	67.77%
I love the brand	39.51%
I buy from the brand despite cheaper competitors	37.68%

For consumers, product is still the point of entry and departure for brand loyalty, a validation of the “hero product” concept that are the specialty of modern D2C brands.

Which of these inspire your loyalty to a brand?
Product	77.84%
Price	62.96%
Customer service	26.14%
Loyalty program	22.34%

Consumers that are loyal to a brand are more than willing to refer that brand (59 percent) to their friends and family. They are also willing to spend more with that brand (36 percent) eschewing Amazon or cheaper options.

For brands they are loyal to, consumers are willing to?

Join their loyalty program	59.48%
Refer the brand to others	59.29%
Spend more on product even w/ cheaper options elsewhere	36.49%

Brand loyalty needs to be earned and re-earned

What hasn’t changed in 2019? It still takes a lot of purchases to cultivate loyalty. Before considering themselves loyal, shoppers need to buy from the same company:

Five or more times (36 percent v. 37 percent)
Three times (33 percent, no change)
Four times (17 percent, no change)
Two times (13.2 percent v. 12.4 percent)

Impact of brand loyalty to holiday shopping

New for 2019! Consumers are more likely to do their holiday shopping with brands they love (41 percent) and a majority find customer reviews helpful (80 percent) when researching or shopping for gifts online.

When shopping for gifts, which of these are true?

I am more likely to buy something from a brand I love	40.98%
I don’t typically consider brand name in my buying decision	23.90%
Price is important but the brand matters more	16.59%
I am more likely to buy from a brand if I am part of their loyalty program	15.12%

When researching or shopping for gifts online, which of these are the most helpful?

Customer reviews	80.49%
Photos from customers	55.61%
Videos from customers	29.76%

Yotpo’s 2019 State of Consumer Loyalty presents findings from a survey of 4,200 U.S. adult (18+) consumers, conducted by Pollfish for Yotpo in October 2019.